Benchmark
For a security or portfolio, a benchmark is used to track against. Generally, the benchmark is an index or weighted return stream of multiple indices that help give an idea of what your investment should strive to match or beat.
Benchmarks are also used to calculate risk metrics like Alpha, Sharpe Ratio, and Beta for securities and portfolios.
On YCharts, we use the following benchmark indices to calculate broad asset class risk metrics:
| Asset Class | Benchmark Index |
|---|---|
| US Equity | S&P 500 Total Return [^SPXTR] |
| International Equity | MSCI ACWI ex USA Net Total Return [^MSACXUSNTR] |
| Municipal Bond | Barclays Municipal Bond Total Return [^BBMBTR] |
| Allocation | S&P 500 Total Return [^SPXTR] |
| Taxable Bond | Barclays US Aggregate Total Return [^BBUSATR] |
| Commodities | Bloomberg Commodity Index Total Return [^BCTR] |
| Money Market | Barclays US Treasury Bills 1-3 Month Total Return [^BBUTB13MTR] |
| Sector Equity | MSCI World Net Total Return [^MSWNTR] |
| Alternative | MSCI ACWI Net Total Return [^MSACWINTR] |