ETF Benchmark Comparison Analysis
Measure your ETF portfolio performance against MSCI World, MSCI Europe, and official indices
Benefits
Alpha analysis
Calculate whether your portfolio is outperforming or underperforming its benchmark
Tracking error
Measure deviation from benchmark. In passive investing, should be minimal (<0.5%)
Performance comparison
Visual charts comparing your TWRR vs benchmark across monthly, annual, and since-inception periods
How it works
1. Select your benchmark
Choose MSCI World, MSCI Europe, EURO STOXX 50, or weighted combination of your funds
2. Index Balance fetches data
System retrieves historical benchmark prices and calculates parallel returns
3. Detailed analysis
Comparison charts, period table, tracking error and alpha metrics
Frequently asked questions
What tracking error should I expect?
Passive ETFs should have tracking error <0.5%. Higher values suggest high fees or processing delays
Can I have negative alpha?
Yes, normal due to fund fees (TER). If >1%, switch to cheaper funds or review asset composition
Which benchmark for a mixed portfolio?
Create a weighted benchmark (e.g., 60% MSCI World + 40% MSCI Europe) matching your allocation
How is TWRR vs benchmark calculated?
We isolate true returns independent of contribution timing using Time-Weighted Return for both
Does beating the benchmark matter?
In passive investing, matching the benchmark is the goal. Consistent outperformance is statistically unlikely