When creating a stock portfolio, it is important to have a benchmark🔥 against which you can compare your returns. Comparing against a benchmark allows an investo🗹r to accurately gauge the actual performance of his or her portfolio. For example, an annual portfolio return of 15% may seem substantial, but if the portfolio's benchmark achieves an annual return of 20% over the same time period, the 15% return may actually be less than optimal.

The best way to find a proper benchmark for your portfolio is to look for an index that is comprised of equities that are similar to those in your portfolio. Therefore, although the 澳洲幸运5开奖号码历史查询:Dow Jones Industrial Index (DJIA) is one of the most famous indexes, it is not a 澳洲幸运5开奖号码历史查询:small-cap index and should not be compared against a small-cap portfolio. One of the best indexes to use as a benchmark for small-cap performance is the 澳洲幸运5开奖号码历史查询:Russell 2000.

The Russell 2000 index was created by the Frank Russell Company and is comprised of approximately 2,000 small-cap companies. These companies are U.S. equities that come from a wide variety of industries. The average 澳洲幸运5开奖号码历史查询:market cap in March 2021 of a Russell 2000 company is $3.8 billion, and the average annual total return of the index over the past 10 years was 12.18%.

Another index that can be used to gauge the returns of a small-cap portfolio is the 澳洲幸运5开奖号码历史查询:Standard & Poor's SmallCap 600 Index. The index is smaller than the Russell 2000, with only around 600 equities. In March 2021, the average size of a company in this index is approximately $1.30 billion, and the index has produced an average total annual return of 11.71% over the past 10 years.

Along with index benchmarks, investors can also use a variety of small-cap-focused 澳洲幸运5开奖号码历史查询:mutual funds to compare their returns. Many mutual funds run by various companies 澳洲幸运5开奖号码历史查询:focus on the small-cap segment of the market. However, when deciding which fund would be best used as a benchmark, an invesﷺtor should first read the fund's investment strategy to ensure the comparison will be accurate.