Baseplusindex
Baseplusindex is a financial metric used to evaluate the performance of a mutual fund or exchange-traded fund (ETF) by comparing its total return to a benchmark index. The term "baseplusindex" is often used interchangeably with "total return index" or "TR index." This metric is particularly useful for investors who are interested in understanding the fund's performance relative to a specific market index, such as the S&P 500.
The baseplusindex calculation typically involves two components: the base return and the index return. The base
One of the key advantages of using the baseplusindex is that it provides a more accurate representation
However, it is essential to note that the baseplusindex may not be suitable for all investors. For
In summary, the baseplusindex is a valuable financial metric for evaluating the performance of mutual funds