Key insights
- The performance discrepancy between the Russell 2000 index and the BSMKS fund likely stems from factors such as the fund's expense ratio, tracking error, and potential differences in the fund's holdings compared to the index. High expense ratios can erode returns, while tracking error reflects how closely the fund mirrors the index. The fund's specific investment strategy within the Russell 2000 universe may also contribute to the divergence.
On my trading platform (brokerage account) I have that performance screen where you can see how your portfolio stacks up against the major indexes. I noticed the Russell Index killing it lately, so back in Q3 2025 I put some of my 401k funds into a Russell fund. To say it has sucked is an understatement. How TF is the index killing it vs. S&P and Dow, but this fund based on it (BSMKS) so terrible? It's the only Russell option my 401k offers.
I am an amateur investor, so be gentle, and ELI5. Why is there such an enormous performance gap from what I see in my brokerage platform and the performance of this index fund based on it? What am I missing here?