Benchmark Index

The benchmark index is one of the popular index security used as a benchmark to track the progress of the broader market. In other words, a benchmark index comprises securities that can evaluate the result of various assets within the market.

The S&P 500, Russell 3000, Nasdaq Composite, are some of the prominently used benchmark indexes. Benchmarking is an integral part while investing in assets, as it allows investors to predict the success of their investment to a certain degree.

The Blockchain Index Methodology (HFR) is the prime example of the Blockchain version of a benchmark index. By participating in various Blockchain projects and shared ledger technology, fund managers can expect financial gain. According to a portfolio’s performance, the benchmark index can be adjusted over a period of time.