![]() What makes the S&P 500 an appropriate benchmark for many stocks? As a starting point, it's very broad-based. ![]() For example, here's how well-known S&P 500 component Wells Fargo & Co has performed against the index since 2000: To start, the best use of a benchmark index is to measure the individual performance of its components against the whole. Sure, the S&P 500 has much higher total returns than the Total Return fund, but investors in a bond fund aren't trying to beat the market, but rather to preserve capital and avoid the sudden declines in value that stocks can experience (see the sharp drop in the blue line within the gray block, which represents the most recent U.S. However, the PIMCO Total Return fund is a bond fund, and the S&P 500 is a broad index of stocks, which are not a comparable investment. If you were comparing the total returns of, say, the PIMCO Total Return R fund to the S&P 500, you'd think that fund was a terrible investment: As a general measure, the S&P 500 is an appropriate benchmark for gauging the performance of your holdings and the stocks you're interested in buying.īut it's important to keep in mind that you can't compare every investment to the world's most popular benchmark index. Stock returns are often compared to the S&P 500, which is a broad-based index of U.S.-based blue-chip stocks. Mutual funds and ETFs will typically give you historical performance against the appropriate benchmark based on the goals, makeup, and objectives of the fund. The idea behind an index is to create a standard for gauging the performance of the market (or a particular sector of the market) and comparing the returns of individual investments. These indexes are lists of stocks that are grouped together based on certain criteria - most often the underlying companies' size and/or industry. Shree Cement Q1 Results: Firm beats profit view on strong domestic demand The company reported a profit of 5.81 billion Indian rupees ($70.87 million) for the three months ended June 30, beating analysts' average estimate of 4.29 billion rupees, according to Refinitiv IBES data.There are a number of commonly used benchmarks in investing, but most are indexes, like the S&P 500, the Dow Jones Industrial Average, and the.Japan's Nikkei hits 4-week peak amid calm bond market, earnings boost The benchmark Japanese government bond yield rose to a nine-year high of 0.605% to start Monday trading, and then eased to 0.59%, after investors had the weekend to digest the BOJ's de facto doubling of the policy ceiling under yield curve control (YCC) to 1%.yields hit a 10-month high on Wednesday after the Federal Reserve's July meeting minutes showed that officials were divided over the need for more interest rate hikes Indian bond yields rise tracking US peers local inflation dents sentiment Benchmark 10-year U.S.Euro zone bond yields jump as US 10-year yields scale 15-year highs Data released earlier on Monday showed German producer prices fell more than expected in July, with the decline due primarily to lower energy prices.Oil prices ease on concerns over rate hikes, China gloom Markets are awaiting hints on the outlook for interest rates from policy makers when Federal Reserve officials and policy makers from the European Central Bank, the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, for their annual central bank conference later this week.spurred further concerns about a supply deficit stemming from extended production cuts by Saudi Arabia and Russia. Oil prices rise on supply deficit concerns Oil prices rose in early trade on Tuesday for the fourth consecutive session, as weak shale output in the U.S.China leaves benchmark lending rates unchanged as expected In a Reuters survey of 29 market analysts and traders, all participants predicted no change to the one-year LPR, while a vast majority of them also expected the five-year rate to remain steady.Oil prices fall ahead of more central bank steers on interest rates Federal Reserve policymakers still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range, just a quarter of a percentage point above the current range.26, the exchange said in a statement on Wednesday GIFT Nifty sets all-time high single-day turnover of $16.76 bln Gift Nifty, formerly known as SGX Nifty that traded on the Singapore Exchange's platform, exceeded its previous record single-day trading turnover of $15.25 billion hit on Sept."We have the largest pool of English STEM (science, technology, engineering and math) graduates in the world, and a powerful youth that will grow and power our economy going forward." ET CEO Roundtable: India's setting benchmarks in digital world, says Satyan Gajwani, Times Internet Times Internet vice chairman Satyan Gajwani highlighted that the level of talent and capability in India was particularly exciting.
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