How Should You Measure Your Portfolio's Performance?

October 26, 2020
Almost everyone wants high returns from their portfolio, but how do you know if you are using the right benchmarks to measure those returns?

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After you listen

Given the strong market rebound this year, many investors might wonder whether their performance is, in fact, good enough. And that makes sense—we all want high returns. But is shooting for the highest return really the best approach? If a portfolio lags the market indexes we see on the news, our inclination is to feel that something is wrong. However, few diversified portfolios can track a single index, so how should you measure your portfolio’s performance?

In this episode, Mark Riepe interviews David Koenig, vice president and chief investment strategist for Schwab Intelligent Portfolios. Mark and David discuss which indexes can be used as benchmarks for certain asset classes, staying on track with your goals, risk tolerance, market volatility, and other issues.

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