™A fund returning 7.7% versus a matching total-return benchmark at 8% has a −0.3-percentage-point return difference.
ETFs & Funds
Benchmark
A specified reference used to compare performance or exposure under a defined methodology.
Plain-English context
Put the definition to work.
An unsuitable benchmark can make relative performance misleading; match asset mix, currency, period and return basis.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — ETF bulletin