Benchmark indices

Benchmark indices are standard measures used to gauge the performance of financial markets or specific segments within them. They represent a hypothetical portfolio of selected stocks or assets, providing a point of reference for investors. For example, the S&P 500 index tracks 500 of the largest publicly traded companies in the U.S., reflecting their overall performance. Investors use these indices to compare their own investment returns and assess market trends. Essentially, they help people understand how well the market or a particular sector is doing over time.