![]() Steady Global Growth (Theme - Global growth with lower volatility).Stellar Global Dividend Growth (Theme - Global growth with high dividend).Sustainable Global Hedged Growth (Theme - Global growth with less currency risks).Stable Global Growth (Theme - Global balanced growth).Simple Global Growth (Theme - Global diversified growth).Systematic Global Growth (Theme - Global benchmark matching growth).Strengthened International Growth (Theme - International diversified growth).fixed income with high quality enhanced yield) balanced equity and bond income with enhanced yield) The new Theme-Based Benchmark Indexes created by ISIR include Thanks to the rapid growth of ETF industry, the creation of Theme-Based Benchmark Indexes has recently become a reality. The Institute for Systematic Investing Research (ISIR) has long been dedicated to the development of theme-based portfolio benchmarks. For those investors already in retirement, they do not even feel they need a irrelevant and misleading blended benchmark which is often applied today, as the main consideration for them are simply having sufficient income. Most portfolio managers today recognize that applying a traditional single market index such as the S&P 500 Index often encourages short-term thinking and possibly even too much trading. Each Theme-Based index creates a customized benchmark that reflects an investor's personal circumstances (a Theme) such that the most relevant comparison can be made for a portfolio as a whole. Aggressive benchmark was composed of 50% S&P 500, 25% MSCI EAFE, 20% Russell 2000, 5% 3-Month T-Bill.Ī Theme-Based Benchmark Index is a portfolio of ETFs following a predefined trading rules.Aggregate Bond, 15% Russell 2000, 5% 3-Month T-Bill. Moderately Aggressive benchmark was composed of 45% S&P 500, 20% MSCI EAFE, 15% Barclays U.S.Moderate benchmark was composed of 35% Barclays U.S.Moderately Conservative benchmark was composed of 50% Barclays U.S.Aggregate Bond, 30% 3-Month T-Bill, 15% S&P 500, 5% MSCI EAFE. Conservative benchmark was composed of 50% Barclays U.S. ![]() A set of popular portfolio benchmarks defined below are used to evaluate a portfolio's performance for the given risk tolerance level, ranging from Short-Term (100% cash or 3-Month T-Bill), Conservative, Moderate Conservative, Moderate, Moderately Aggressive, to Aggressive. Other single market index can also be used as the benchmark for a specific portfolio.Ī Portfolio Index benchmark can be created by a combination of multiple well-selected single market indexes. The bond index can be used together with the S&P 500 Index to form a simple blended benchmark such as a 60/40 benchmark (60% S&P 500 and 40% bond). In 2014, S&P Global also created a similar bond index with value started in 2002. Note that it contains no high-yield issues. This index is a combination of the Government, Corporate, Mortgage-Backed, and Asset-Backed Securities indexes. Aggregate Bond Index is used as the standard benchmark index. ![]() ![]() Therefore, a percentage change in the market value of a large company has a greater impact than an identical percentage change in a smaller company.Īs the most popular single index benchmark, the S&P 500 Index is also used for those portfolios where no other standard benchmark is readily available for comparison, such as domestic-hybrid, international-hybrid, and convertible-bonds.įor any fixed income portfolio, the Lehman Brothers (now Barclays) U.S. The S&P 500 Index is market-cap-weighted, which means that the importance of individual stocks in the index depends upon the stock's market value. Often considered a surrogate for the overall market, this index is composed of the stocks of 500 of the largest companies listed on U.S. ![]() The Standard & Poors 500 Index has been widely used as the basic benchmark for stock-oriented portfolios. ![]()
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