Bogey

Loading the player...

DEFINITION of 'Bogey'

A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the investment scope of the funds investment. Comparing a fund's performance to a benchmark index gives investors an idea of how well the fund is doing compared to the market.

Also known referred to as "bogy".

BREAKING DOWN 'Bogey'

For example, the performance of a small-cap fund may be compared to the Russell 2000, which is a benchmark for small-cap funds. The Russell 2000 would be referred to as the small-caps bogey, when talking of its over- or underperformance to the fund.

One of the most common benchmarks is the S&P 500 index.

RELATED TERMS
  1. Active Risk

    A type of risk that a fund or managed portfolio creates as it ...
  2. Benchmark Bond

    A bond that provides a standard against which the performance ...
  3. Active Index Fund

    A type of index fund where a fund manager bases the fund's initial ...
  4. Index Hugger

    A managed mutual fund that tends to perform much like a benchmark ...
  5. Outperform

    An analyst recommendation meaning a stock is expected to do slightly ...
  6. Composite

    A grouping of equities, indexes or other factors combined in ...
Related Articles
  1. Managing Wealth

    What Is a Bogey?

    A bogey is a performance benchmark to which a fund or investment manager is compared.
  2. ETFs & Mutual Funds

    Benchmark To Show Winning Returns

    You can't win if you don't keep score. Read on to learn how to measure your returns.
  3. ETFs & Mutual Funds

    5 Best US Small-Cap Index Mutual Funds

    Read about different small-cap mutual funds that are available for investors. Learn about how the small-cap indexes have higher volatility.
  4. ETFs & Mutual Funds

    The Top 5 Small Cap Mutual Funds for 2016

    Learn about small-cap mutual funds that are poised for solid performance in 2016. Understand how the small-cap market has higher volatility and risk.
  5. ETFs & Mutual Funds

    Active Management: Is It Working For You?

    There are guidelines to be followed when comparing an actively-managed investment strategy with a benchmark.
  6. ETFs & Mutual Funds

    The Top 5 Small-Cap Core Mutual Funds for 2016

    Discover five mutual funds that specialize in investing in core small-market capitalization stocks traded on U.S. stock exchanges.
  7. ETFs & Mutual Funds

    NAESX vs. SLYG: Mutual Fund vs. ETF Case Study

    Learn about how factors such as management style, sector allocation, expenses and dividend yields differentiate between similar ETFs and mutual funds.
  8. ETFs & Mutual Funds

    Mutual Funds Vs. ETFs: Small Cap Stocks

    For individual investors, a passive strategy may be best when investing in the small-cap realm of equities.
  9. Managing Wealth

    How to Use a Benchmark to Evaluate a Portfolio

    What is an investment benchmark and how is it used to evaluate the risk and return in a portfolio.
  10. ETFs & Mutual Funds

    4 Best Quantitatively Driven Mutual Funds

    Discover detailed analyses of the four best quantitatively driven mutual funds, and learn about their characteristics and their historical betas.
RELATED FAQS
  1. What should I use as a benchmark for my small-cap stock portfolio?

    When creating a stock portfolio, it is important to have a benchmark against which you can compare your returns. Comparing ... Read Answer >>
  2. What are the main benchmarks that track the banking sector?

    Read about the most important benchmarks that can be used to track the banking sector, and why banking benchmarks tend to ... Read Answer >>
  3. What are the pros and cons of using the S&P 500 as a benchmark?

    Learn about the advantages and disadvantages of using the S&P 500 as a benchmark for portfolio performance, and understand ... Read Answer >>
  4. How can I calculate the tracking error of an ETF or indexed mutual fund?

    Understand what tracking error is and learn about the significant difference it can represent for investors who favor index ... Read Answer >>
  5. How do I judge a mutual fund's performance?

    Evaluate mutual fund performance utilizing resources such as Morningstar; compare the fund with others in its peer group ... Read Answer >>
  6. What does a mutual fund's beta coefficient measure?

    Evaluate the risk associated with a particular mutual fund by determining its beta coefficient, which illustrates the fund's ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center