Investor's wiki



What Is a Bogey?

Bogey is a buzzword that alludes to a benchmark used to assess a fund's performance and risk qualities. A bogey gives an index benchmark that can act as a close proxy for looking at the investment scope of a fund.

How a Bogey Works

A bogey alludes to a benchmark for a mutual fund that furnishes the investor with a representative sample of a market segment for which it can compare performance and different qualities. Benchmarks can be recognized and used in various ways. A few benchmarks might be relative and set by an investor for contrasting their fund with the broad market or different investments across the industry. A bogey normally alludes to a specific benchmark that is set by the fund company as a close comparison for the fund itself.

Choosing a bogey is a crucial portfolio task; picking an index or benchmark intruder requires forecasting volatility and interest rates.

Special Considerations

Investors use benchmarks to compare and difference the performance of an index addressing a market sample with different various types of funds and investments in the market. Benchmarks can be utilized for a wide range of purposes and can assist an investor with finding out about how market segments are performing across the industry.

A bogey benchmark is much of the time distinguished by a mutual fund company and referred to alongside its objective and investment strategy in a fund's registration reports and prospectus. Passive investment funds and their benchmarks give a leading illustration of a bogey benchmark. These funds look to recreate the performance and qualities of an index with little return tracking or risk deviation.

Different funds might involve the bogey benchmark as the investment universe while building an investment strategy that looks to outperform the benchmark. Besides, a few investors might compare and balance bogey benchmarks with relative benchmarks to gain a better comprehension of how a fund and its benchmark are acting in comparison to other broad market options.

Illustration of a Bogey

The S&P 500 and U.S. Aggregate Bond Index give two instances of benchmarks to U.S. equities and U.S. debt. Through June 23, 2021, the S&P 500 had a return of 12.93% for year-to-date and the U.S. Aggregate Bond Index had a return of - 1.85%. These leading benchmarks are in many cases used to assist investors with measuring the performance expectations of new investments in the two equities and fixed income.

A bogey benchmark will have comparative on the off chance that not a similar performance as a fund. One illustration of bogey benchmark analysis on a passive fund incorporates the Russell 3000 Index and the iShares Russell 3000 Index Fund (IWV). Through June 23, 2021, the Russell 3000 Growth Index had a return of 13.71% versus the return of 13.61% for IWV.

For an investor taking a gander at this investment in broad market terms they would see that IWV is closely tracking its bogey benchmark and has comparable risk qualities. In relative comparison this fund and its bogey benchmark are additionally outperforming the Bloomberg U.S. Aggregate Bond Index with a return of - 1.85% year to date, as of June 23, 2021.


  • The term bogey alludes to an index benchmark that is helpful for assessing a fund's performance and risk qualities.
  • Other investment companies might set a bogey benchmark as a standard they wish to outperform.
  • Bogey benchmarks can be utilized as a comparison for different types of funds in varying ways, contingent upon the company's goal.
  • Passive investment funds, for instance, may set a bogey benchmark and look to recreate the performance of an index.
  • Fund companies pick a specific benchmark that can be utilized as a close comparison device.