Benchmarking might seem simple, but using the wrong one can lead to major misunderstandings between you and your clients. This article explains why comparing a diversified, equal-weight strategy to a large-cap index like the S&P 500 doesn’t make sense—and how correlation plays a key role in setting expectations. We highlight why iQUANT FactCards include up-market and down-market correlation data, how to think about benchmarks when building full portfolios, and why single-model portfolios demand extra attention. Misunderstanding how a model behaves—whether it's an ETF, mutual fund, UIT, or an iQUANT strategy—can erode client trust. It takes a little effort to get this right, but it’s time well spent.