In general, this means to do worse than some particular benchmark. Mutual Fund XYZ is said to' Underperform' the S&P500 if its return falls short of the S&P500 return. However, this language does not take risk into account. That is, one might have a lower return than the benchmark in a particular year because of lower risk exposure. Underperform is also a term used by analysts to describe the prospects of a particular company. Usually, this means that the company will do worse than its industry average. Related: outperform.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). underperform. Retrieved September 22, 2026, from http://smartdefine.org/underperform/definitions/1165835 |
| Chicago | Barry Goldsmith. 2010. "underperform" http://smartdefine.org/underperform/definitions/1165835 (accessed September 22, 2026). |
| Harvard | Barry Goldsmith 2010, underperform, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/underperform/definitions/1165835>. |
| MLA | Barry Goldsmith. "underperform" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/underperform/definitions/1165835> |