Definition of Benchmark:
A standard or point of reference against which things may be compared or assessed.
Evaluate or check (something) by comparison with a standard.
A surveyors mark cut in a wall, pillar, or building and used as a reference point in measuring altitudes.
A benchmark is a standard against which the performance of a security, mutual fund or investment manager can be measured. Generally, broad market and market-segment stock and bond indexes are used for this purpose. It's an element of a Sigma Six black belt.
Benchmarks are indexes created to include multiple securities representing some aspect of the total market. Benchmark indexes have been created across all types of asset classes. In the equity market, the S&P 500 and Dow Jones Industrial Average are two of the most popular large-cap stock benchmarks. In fixed income, examples of top benchmarks include the Barclays Capital U.S. Aggregate Bond Index, the Barclays Capital U.S. Corporate High Yield Bond Index, and the Barclays Capital U.S. Treasury Bond Index. Mutual fund investors may use Lipper indexes, which use the 30 largest mutual funds in a specific category, while international investors may use MSCI Indexes. The Wilshire 5000 is also a popular benchmark representing all of the publicly traded stocks in the U.S. When evaluating the performance of any investment, it's important to compare it against an appropriate benchmark.
Standard, or a set of standards, used as a point of reference for evaluating performance or level of quality. Benchmarks may be drawn from a firms own experience, from the experience of other firms in the industry, or from legal requirements such as environmental regulations.
Synonyms of Benchmark
Standard, Point of reference, Basis, Gauge, Criterion, Specification, Canon, Convention, Guide, Guideline, Guiding principle, Norm, Touchstone, Yardstick, Test, Litmus test, Barometer, Indicator, Measure, Model, Exemplar, Classic example, Pattern, Paradigm, Archetype, Prototype, Ideal
How to use Benchmark in a sentence?
- The school established a benchmark system to make sure all of its students were achieving at least minimal levels of knowledge and skills.
- A benchmark is a survey mark made on a monument having a known location and elevation, serving as a reference point for surveying.
- A benchmark is a standard yardstick with which to measure performance.
- Depending on the particular investment strategy or mandate, the benchmark will differ,.
- We are benchmarking our performance against external criteria.
- In investing, a market index may be used as the benchmark against which portfolio performance is evaluated.
- Choosing the appropriate benchmark is important, as the wrong index can lead to benchmark error.
- A new benchmark was set for the football team when weakest member benched 200 pounds, therefore setting the expectations for all other teammates to bench at least that amount.
- A mans ability to keep his word even though there is no legal document, is a benchmark of his good character.
- A benchmark case.
Meaning of Benchmark & Benchmark Definition