Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Gordon Scott has been an active investor and technical analyst ...

When it comes to evaluating investment performance, investors and financial professionals rely on various metrics to gain insights into the effectiveness of their strategies. One such crucial measure ...

You don’t need a doctoral degree in finance to calculate your portfolio’s investment returns. A few principles are enough to turn even the most math-phobic people into shrewd investors. While basic ...

Being under the illusion that you are earning a high rate of return when your true return is sub-par often leads to overconfidence, which is a performance killer. Money-weighted returns (also called ...

We estimate the average dollar invested in US mutual funds and exchange-traded funds earned 7.0% per year over the decade ended Dec. 31, 2024. That estimate, which is akin to an internal rate of ...

The average fund gained about 7.7% per year over the 10 years ended Dec. 31, 2022, while the average dollar invested in mutual and exchange-traded funds earned a 6% annual return. The 1.7% gap—17% ...

Stocks are overvalued. Bonds offer low real yields after tax and inflation. We present a superior alternative to achieve a higher yield and stronger total returns over the long run. There is arguably ...