Benchmarking portfolios

Benchmarking in Sharesight allows you to select any ETF in our database to use for comparison against your portfolio. This feature will add an additional row to the summary bar, which allows you to compare the percentage return of your portfolio to the percentage return of the benchmark.

The performance of the benchmark over time is also plotted on the Performance Index Graph.

Note: This feature is currently only available on Investor, Expert and Shaesight Pro plans.

Benchmarking portfolios - Sharesight Portfolio Management

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On the Portfolio Overview page, click on the advanced options menu. From there, you’ll find the Benchmark Instrument section Benchmarking Menu

The common benchmark drop-down menu offers you pre-selected options for tracking your portfolio against popular market indexes. The list is made up of popular index-tracking ETFs. Common Benchmarks

You may also search for a specific security by typing in the name or code. Custom Benchmark

Once you’ve located the security, click apply and the benchmark will be saved against your portfolio. You’ll immediately notice a new line of data underneath your portfolio’s capital, income, and currency return, which displays the selected benchmark’s performance.

Benchmark Performance

Clicking on the name of the benchmark will display the Share Checker for the benchmarked instrument. This allows you to view the underlying prices and distributions that are used to calculate the benchmark percentage return. Benchmark Share Checker

To view your portfolio’s indexed performance versus your benchmark within the chart area, simply select the graph performance index option in the chart type dropdown menu. Graph Performance Index

The chart will refresh itself to display your portfolio’s performance index against your selected benchmark. Benchmark Graph

Note that in order to accurately compare your portfolio to your chosen benchmark, Sharesight assumes that you’d invested equal amounts of money in both for the duration of the reporting period. When you plot your holdings on the chart, you’ll see that the Y-axis scales so that both investments begin at the same point. Tracking your mouse along the lines will display a pop-up that shows how the value of each changes. It’s important to understand how to interpret the return index graph.

Please refer to interpreting the return index graph more information, including specific examples.

For more information on why we use real ETFs as our suggested benchmarks versus the broad market indexes, and how we calculate benchmarking performance, read our benchmarking article or follow the topic in our community forum.

Last modified on October 26, 2017 UTC