##  [# Benchmark Definition](/sections/benchmark-definition) 

 

# Benchmark Definition

 

 

Learn the definition of benchmark and other ETF terminology from the etf.com glossary.



 

 

 

 

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[By ETF Glossary](/authors/etf-glossary)

 Dec 08, 2023

 Edited by: ETF.com Staff

 

 

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## Learn more about Benchmark

In the realm of ETFs, a benchmark serves as the yardstick against which a fund's performance is measured. This predefined index, whether representing a specific market sector or asset class, establishes the standard for the ETF's success in tracking the performance of the index benchmark. Investors may use benchmarks to gauge the fund's effectiveness in delivering returns aligned with their investment goals, providing a transparent and quantifiable benchmark for evaluating the ETF's performance, and assessing its ability to fulfill its intended purpose.

### Related Terms

[Index](/etf-education-center/etf-glossary/index), [Exchange-Traded Fund (ETF)](/etf-education-center/etf-glossary/exchange-traded-fund-etf)

 
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 [ ETF Glossary ](/authors/etf-glossary) 

 

 

  ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock…   [View Bio](/authors/etf-glossary)

 



 

 


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