Benchmark

Definition

A benchmark is a published index, such as MSCI World, S&P 500 or Bloomberg Global Aggregate, that a fund uses to define or judge its performance. For an index fund the benchmark is the thing being replicated. For an active fund it is a yardstick: the manager tries to beat it, stay within a risk budget around it, or simply uses it for comparison. UCITS documents must state whether the fund is managed with reference to a benchmark and, if so, show the benchmark's past performance next to the fund's.

Why it matters

Absolute returns tell you little without context. A 12% year is strong if the benchmark made 8% and weak if it made 20%. Benchmark data is also the basis of tracking difference and tracking error for index products, and of excess return and information ratio for active ones.

In the API

The benchmark's name is in benchmarkName. Calendar-year returns for both fund and benchmark are aligned in calendarReturns. Example values:

json
{
  "benchmarkName": "MSCI World Index (Net Return, USD)",
  "calendarReturns": {
    "years": [2023, 2024, 2025],
    "fund": [23.6, 18.9, 11.2],
    "benchmark": [23.8, 19.1, 11.4]
  }
}

Common pitfalls

Index variants matter: price return, gross total return and net total return versions of the same index differ by the dividend treatment, and UCITS ETFs are normally compared with the net return version. Benchmark currency may differ from the share class currency. Some funds change benchmark over time, so historical comparisons should use the benchmark in force for each year.