Benchmark

What Does Benchmark Mean?
A standard against which the performance of a security, mutual fund or investment manager can be measured. Generally, broad market and market-segment stock and bond indexes are used for this purpose.

Investopedia explains Benchmark
When evaluating the performance of any investment, it's important to compare it against an appropriate benchmark. In the financial field, there are dozens of indexes that analysts use to gauge the performance of any given investment including the S&P 500, the Dow Jones Industrial Average, the Russell 2000 Index and the Lehman Brothers Aggregate Bond Index.

Related Terms

After-Market Performance
Benchmark Bond
Bogey
Index Fund
Index Hugger
Lipper Indexes
Passive Management
Russell 2000 Index
Wilshire 5000 Total Market Index - TMWX
World Equity Benchmark Series - WEBS
More Related Terms

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