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The performance of a predetermined set of securities, used for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy.


A standard against which a security's performance is compared. A benchmark is usually an index of securities of the same or similar class. Stocks are usually compared against stocks; bonds against bonds, etc. Another type of benchmark considers securities according to industry: a telecommunications stock may be compared to other telecommunications stocks. Likewise, mid-cap securities may be benchmarked against other mid-cap securities. Some indices, such as the Dow Jones Industrial Average and the S&P 500, are considered to be benchmarks for the wider economy.


A standard by which something is measured. For example, bond yields are generally compared to benchmark yields on U.S. Treasury securities of similar maturity. Mutual fund performance is often compared to changes in the Standard & Poor's 500 Stock Index.


An investment benchmark is a standard against which the performance of an individual security or group of securities is measured.

For example, the average annual performance of a class of securities over time is a benchmark against which current performance of members of that class and the class itself is measured.

When the benchmark is an index tracking a specific segment of the market, the changing value of the index not only measures the strength or weakness of its segment but is the standard against which the performance of individual investments within the segment are measured.

For example, the Standard & Poor's 500 Index (S&P 500) and the Dow Jones Industrial Average (DJIA) are the most widely followed benchmarks, or indicators, of the US market for large-company stocks and the funds that invest in those stocks.

There are other indexes that serve as benchmarks for both broader and narrower segments of the US equities markets, of international markets, and of other types of investments such as bonds, mutual funds, and commodities.

Individual investors and financial professionals often gauge their market expectations and judge the performance of individual investments or market sectors against the appropriate benchmarks. In a somewhat different way, the changing yield on the 10-year US Treasury bond is considered a benchmark of investor attitudes.

For example, a lower yield is an indication that investors are putting money into bonds, driving up the price, possibly because they expect stock prices to drop. Conversely, a higher yield indicates investors are putting their money elsewhere.

Originally the term benchmark was a surveyor's mark indicating a specific height above sea level.


A permanent reference mark,usually set in concrete or iron and used to establish the elevation above sea level or certain corners in a surveying system. All other measurements in the area should be checked for accuracy relative to the nearest benchmark, preferably against several nearby benchmarks to establish redundancy.

References in periodicals archive ?
Whetstone says he sees the value in sharing information -- particularly if one company is familiar with a certain type of cyber attack and makes other companies and public entities aware of it.
Investigators have not officially ruled that Weaver's sexual orientation was a motive, but Whetstone is convinced it was.
Bedford replied with a try from new boy Paul Sackey before Cunningham kicked two more penalties and Whetstone went over again.
So what's so new about the new generation Whetstone store?
Jaffe, 48, joins the firm's ownership ranks with Roger Pondel and Rob Whetstone.
Now 27% occupied and 39% leased, Whetstone has been averaging approximately five new leases per week since early March and is projected to reach stabilization in or about the 4[sup.
According to the company, Whetstone works to facilitate satellite-based connectivity for small-unit mission teams or brigade combat groups.
Racing in temperatures well above 40 degrees, Cossar and his Binley Woods passenger, Daz Whetstone, initially made it through to the B Final after recording 12 points from a possible 15 in the qualifying heats, including three fine wins.
died Wednesday from complications from heart surgery, said his friend and attorney, Bud Whetstone.
The 13-year-old pupil was knocked down by a car when he stepped out from behind a parked bus in October 2008 in Whetstone Bridge Road, Hexham, Northumberland.
Children aged between eight and 10 from Whetstone Field Primary, in Beaufort Way, Aldridge, helped with the planting and design of the garden.
Baldwin County district attorney David Whetstone said there was "not a doubt" in his mind that Weaver's being gay was at least a significant reason for his murder.