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Benchmark Illusions: The Case Against Narrow Equity Benchmarks

What should equity funds be measured against?

Nicolas Rabener
10 min read
4 May 2026

SUMMARY

  • Most equity products should be benchmarked against the global stock market
  • If the strategy underperforms, then it does not deserve an allocation
  • The only exception is diversifying equity strategies

INTRODUCTION

The Global Luxury Goods Fund (USLUX) offers investors exposure to iconic luxury companies such as LVMH, Hermes, and Ferrari – brands whose products are often out of reach for most consumers. A small Birkin bag from Hermes, for example, can cost well over $10,000. Even for those who can afford it, purchasing one is not straightforward: Hermes sells these bags selectively, often requiring years-long waiting periods. On the secondary market, prices frequently double or even triple.

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