Benchmarking Returns

Michael Sheehan

Physician's Money Digest, July31 2004, Volume 11, Issue 14

If you have money in bonds, how do your returns stack up against the LehmanBrothers Aggregate Bond Index, the yardstick for bond investments? Do your largecap stocks do better than the S&P 500? You could track down each relevantbenchmark index, but there's an easier way. Go to the Vanguard Web site (www.vanguard.com) and look up the fund company's index funds. Choose one thatmatches the type of securities you want to compare (eg, large cap stocks, long-termbonds, international stocks, etc), and click on "Price and Performance." Theresulting graphic will show you the fund's track record against the relevant index,which you can then use to see how well your investments have done.