19 Dec My portfolio is lagging the S&P. Should I make changes?

Q. I use a financial planner and my returns have consistently been about 2% less than the S&P. My allocation is 80% equities so it feels like I should do at least what the S&P does. Should I just drop the advisor and use index funds?
— Investor

A. We all want to compare our returns to something — like you, to an index — to make sure our money is working for us.

But you have to consider what your allocation is.

The S&P 500 is a 100% equity index, said Leo Chubinishvili, a certified financial planner and wealth advisor with Access Wealth in East Hanover.

If your portfolio is allocated 80% to equities, the appropriate benchmark is a blended one, such as 80% S&P 500 and 20% bonds (e.g., the Aggregate Bond Index), he said.

In 2023–2024, the S&P 500 delivered annual returns above 20%, meaning an 80% equity portfolio would naturally lag by more than 4% simply due to allocation, Chubinishvili said.

“Good financial planners use diversification, risk management, tax-loss harvesting, and other strategies to improve after-tax returns while reducing risk,” he said. “In that context, a 2% lag can be reasonable—as long as performance is measured apples to apples.”

If you’re not sure that your allocation matches your goals, it’s time for a conversation with your advisor.

Email your questions to .

This story was originally published in December 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.