Marketlagging
Marketlagging refers to a situation where an investment or asset's price performance trails behind that of a benchmark index or a broader market segment. This can occur for various reasons, including poor stock selection, unfavorable sector exposure, or underlying company-specific issues that weigh down performance. Investors might observe marketlagging when a significant portion of their portfolio fails to keep pace with the overall gains of major stock market indices like the S&P 500 or the Dow Jones Industrial Average.
Identifying marketlagging is typically done by comparing the return of an individual investment or a portfolio
Causes of marketlagging can include a portfolio being heavily concentrated in underperforming industries or companies, a