If you’ve been investing in the stock market on your own for some time now, do you know how you’re performing against S&P 500 or other benchmarks?
Besides measuring your portfolio performance by its compound annual growth rate or CAGR which is an absolute metric, you should also know where your portfolio performance stands relative to the benchmarks.
For a long time, I’ve had that question in my mind. Usually I track my portfolio on a Google Spreadsheet and on Yahoo Finance. Neither of these has a portfolio performance tracking tool.
Yahoo Finance recently added a little graph under ‘My Portfolio’ that compares each of your portfolios against the S&P 500 (^GSPC). However, it’s largely just a visual. There’s practically nothing you can interact with on the graph. I’m not even sure what the period of visualisation is. In addition, I can’t tell the actual percentage that my portfolio is lagging the benchmark here.
Source: Yahoo Finance...