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