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Charles Armstrong

A benchmark is a proxy for a market, economy, class of equity, or sector, generally setting a standard against which the performance of a stock, bond, mutual fund, commodity, or other security is measured.

Benchmarks are also used to gauge the health of a market, sector, or entire economy.

[edit] Examples

• The S&P 500 (.SPX-E) and Dow Jones Industrial Average (.DJIA) are often used as benchmarks for the United States economy in general. That is to say, their performance is used both to gauge the health of the economy and as a reference of comparison for the performance of a stock portfolio or mutual fund.

• The Nikkei 225 (NK225-OK) is used as a benchmark for the Japanese economy.

• The Indice Bovespa (IBOV11-BR) is used as a benchmark for the Brazilian economy.
• The TSE 300 is used as a benchmark for the Canadian economy.

• The CAC 40 (CAC40-FR) is used as a benchmark for the French economy.

• The DAX Index (DAX-XE) is used as a benchmark for the German economy.

• The Hang Seng Index (HSI-HK) is used as a benchmark for the Hong Kong economy.

• The IPC Index (IPC-MX) is used as a benchmark for the Mexican economy.

• The SSE Composite Index (SHGIDX-SH) is used as a benchmark for the Chinese economy.

• The FTSE 100 Index (UKX-LN) is used as a benchmark for the UK economy.

• The Straits Times Index - STI (STRAITS-SG) is used as a benchmark for the Singapore economy.

• The All Ordinaries Index (XAO-AU) is used as a benbhmark for the Australian economy.

[edit] See Also

• Market Perform
• Index