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Bogey
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A buzzword that refers to a Benchmark used to evaluate a fund's performance.
The Benchmark is an index that reflects the investment scope of the funds investment. Comparing a fund's performance to a Benchmark index gives investors an idea of how well the fund is doing compared to the market. Also known referred to as "bogy".
For example, the performance of a small-Cap fund may be compared to the Russell 2000, which is a Benchmark for small-Cap funds. The Russell 2000 would be referred to as the small-caps bogey, when talking of its over- or underperformance to the fund.
One of the most common benchmarks is the S&P 500 index.
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Financial Research Associates, LLC
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