Let’s look at the return matrix chart above and assume that ... chase another fund that beat the pants of the index that year. The problem with Relative performance is that while you are happy ...

Relative return is the difference between the absolute return and the performance of the market. Traders commonly use a benchmark, like an index, to accurately measure their investment's return ...

But that logic ignores an often-overlooked benefit of index funds -- the relative predictability of their returns ... Consider the chart above, which depicts each fund's performance by quartile ...