Benchmark

A benchmark is a published standard you hold your own result against, most often an index such as the S&P 500 or the Nasdaq 100. It answers one narrow question: over the same days, and with the same money going in and out, what would a plain index fund have done? A benchmark is not a target and not a recommendation. It is a second number placed beside the first so that the first one carries meaning.

Why it matters

On its own, a return is a bare percentage. Plus twelve percent reads as respectable until you learn the index returned eighteen over the same months, and reads as disappointing until you learn the index returned four. The comparison only works if it is built fairly: the same period, the same currency, dividends counted on both sides, and the same deposits and withdrawals. Change any one of those and the benchmark starts flattering or punishing you for reasons that have nothing to do with the choices you made.

How BullBenchmark shows it

We rebuild your history from your own broker export and draw two index lines next to it, the S&P 500 and the Nasdaq 100, over exactly the days your money was invested. The positions table carries the same comparison per holding, so you can see which parts of the portfolio produced the verdict and which parts diluted it. The whole comparison is visible on the demo portfolio before you upload a file of your own.

Related terms

Ghost portfolio · Cash-flow replay · Total return

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