A long stretch of benchmark losses describes what a particular index did over a specified period; it does not, by itself, say what your fund earned, predict the next market move, or tell you whether to sell. To interpret the streak, identify the index and dates, check how returns were measured, and compare your investment with a benchmark that matches its mandate.
First identify the benchmark and the losing period
“Benchmark shares” is not one specific market or index. A meaningful account of a losing streak needs the benchmark’s name, the start and end dates, and the return measure. The title alone does not establish which index or period is meant, so it cannot establish a current streak, its size, or when a recovery might occur.
Before drawing a conclusion, ask:
- Which index is being discussed, and what market, country, or segment does it represent?
- What dates define the streak, and does “losing” mean each day, month, calendar year, or the full-period return?
- Is the figure a price return or a total return that includes reinvested distributions?
- Does the index’s composition and risk resemble the investment you are evaluating?
These details matter because a price-only figure and a total-return figure can tell different stories, as can indexes covering different countries, company sizes, or investment styles.
What a benchmark can—and cannot—tell you
An index is a rules-based representation of a market or market segment. It provides a comparison standard: an index fund is generally assessed against the index it tracks, while an active fund should be assessed against an appropriate benchmark for its stated mandate. Vanguard explains that an index cannot be invested in directly (Vanguard: What is an index?).
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A fund is an investable product, not the theoretical index itself. Its return can differ because of expenses, tracking differences, holdings, the timing of purchases and sales, and an investor’s own cash flows. A benchmark’s loss therefore does not establish the return experienced by every investor who owns a fund with similar exposure.
Nor does a benchmark’s past result forecast its next one. Vanguard states, “Past performance is not a guarantee of future returns.” Historical declines and recoveries can help put risk in context, but they do not promise a recovery on a particular schedule or guarantee that it will happen.
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How to compare a fund with its benchmark
- Name both investments. Record the fund and the benchmark it tracks or is assigned to. For an active fund, start with its stated benchmark rather than choosing an index after seeing the results.
- Check that the comparison is fair. Confirm that the benchmark fits the fund’s geography, asset class, style, and mandate. A mismatch can make outperformance or underperformance misleading.
- Compare like with like. Use the same dates and return basis, including a consistent treatment of distributions. Distinguish the index’s theoretical return from the fund’s realized return after expenses and tracking differences.
- Look at a relevant period. Do not treat one short interval as a verdict on an active manager. Persistent underperformance against a suitable benchmark can justify investigating the fund and considering comparable alternatives; it is not established merely because the benchmark itself has fallen.
- Relate the result to your plan. Revisit your goals, time horizon, liquidity needs, and ability to bear losses before deciding whether any change is warranted.
Vanguard’s guidance on evaluating results and keeping them in context is available in its portfolio-performance overview. A comparison is useful only when the benchmark, dates, and return measures are appropriate to the fund and the question being asked.
What historical market data can add
Historical figures illustrate how variable returns can be; they are not predictions. Vanguard reports 13 global equity bear markets since 1972 in its analysis of long-term market results. Its S&P 500 annualized-return chart covers 1973 through 2024, uses Vanguard calculations from Refinitiv data, and is described as of December 31, 2024. Those are source-specific historical observations, not a schedule for future downturns or recoveries (Vanguard: Stock market history).
J.P. Morgan Asset Management reports that, on its stated historical data basis since 1950, one-year stock returns ranged from +47% to -39%. It also reports that a stock-and-bond blend had no negative return in any five-year rolling period in the past 70 years on that same page’s data basis. Neither observation guarantees a positive result for a particular portfolio or investor, and a blended portfolio is not equivalent to an all-stock benchmark (J.P. Morgan Asset Management: Guide to the Markets).
What fund-performance figures do—and do not—show
Fund-versus-benchmark statistics are not measurements of benchmark losses. For example, Vanguard attributes the following figures to the S&P Dow Jones Indices SPIVA U.S. Scorecard: the share of funds that underperformed their assigned benchmarks over the five years ended June 30, 2025.
| Fund category | Underperformed assigned benchmark |
|---|---|
| U.S. stock funds | 88% |
| International stock funds | 79% |
| Emerging-market stock funds | 78% |
| Global stock funds | 90% |
| General investment-grade bond funds | 51% |
These percentages describe fund performance relative to assigned benchmarks during that five-year period; they do not mean those benchmarks lost money, and they do not establish how any individual fund performed (Vanguard: Active vs. passive investing).
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Should you change investments after a downturn?
A benchmark’s losing streak is a reason to understand your exposure, not a standalone instruction to buy, sell, or keep every investment indefinitely. Short-term results should be considered alongside your goals and time horizon. Vanguard’s educational guidance emphasizes diversification and avoiding decisions driven by short-term results alone; the right response still depends on the investment’s purpose and risk and on whether your circumstances or plan have changed (Vanguard: Understanding market volatility).
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Use the downturn as a prompt to check whether your portfolio still fits your needs. A sustained, comparable shortfall by an active fund may merit a closer review; a falling benchmark alone does not prove that a fund manager failed or that your long-term plan should change.
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