Returns measured honestly — time, money, inflation, and costs.
| Concept | Explanation | |---|---| | Total return | Price change plus income and distributions. | | Annualized return | Return expressed as an average yearly rate. | | Time-weighted return | Measures investment performance independent of external cash flows. | | Money-weighted return | Reflects the timing and amount of investor cash flows. | | Real return | Return after inflation. | | After-cost return | Return after fees, spread, slippage, and taxes. |