A total portfolio versus a benchmark index comparison is a method used by investors to measure the performance of their investments. The total portfolio represents all the investments held by an investor, while the benchmark index is a standard against which the performance of these investments is compared.

For example, if you have a portfolio of stocks, you might compare its performance to a benchmark index like the S&P 500. If your portfolio's return is higher than the S&P 500, it means your investments are performing well.

However, it's important to choose a benchmark index that closely aligns with your investment strategy. For instance, if your portfolio is heavily invested in technology stocks, the NASDAQ might be a more appropriate benchmark.

Remember, the goal is not necessarily to beat the benchmark but to understand how your investments are performing in the context of the broader market.

stars icon Ask another question
This question was asked on the following resource:

Portfolio Tracker

Manage your portfolio with a template that updates the stock data in real-time. Download our Portfol...

Download model
resource preview

Download and customize more than 500 business templates

Start here ⬇️

Voila! You can now download this Spreadsheet

Download