Projects the year to date returns over a full 12-month calendar year. Mo.html#eful for projecting return for money market funds, CDs, and bonds. Return for equities can be misleading if YTD return is high and covers a shorter period of time. See also TOTAL RETURN.
a rate of return over a full calendar year on an investment that is held for less than a full calendar year
The constant rate of return that, compounded annually, would yield the same overall return for a multi-year period as the actual return observed; or the cumulative return, when the time period is one year or less.
This is the measure of the return on an investment over a period of time. It is the annual return number (expressed in %) which, if used as the return each year during the specific time period, would have resulted in the total cumulative return over that same period.
A return calculated over one period, but adjusted to be comparable to a return calculated over a year.
Expressed as a percentage, annualized return calculates the return of a mutual fund or other investment over the period of an average year within a given duration.
a measure of the average return over a tewelve month period for a fixed period in time, accounting for compounding.
Projects the year to date return over a full 12 month calendar year. Most useful for projecting return for money market funds, CDs, and bonds. Annualized return for equities can be misleading if YTD return is high and covers a short period of time. See Total Return.
A way to calculate the return on an investment of more than one year. The annualized or average annual return is calculated by adding each year's return on investment and dividing that number by the number of years invested. The return takes into account the reinvestment of dividends (and distributed capital gains for mutual funds) as well as the change in the price of the investment over time. Compare to cumulative return.
The average compound annual return for a period greater than 1 year.
Converts a rate of return to an annual basis.
Annualized return, or \"average annual return,\" describes the return gained, on average, each year of a multi-year period rather than a cumulative return. It is a hypothetical rate of return that, if achieved annually, would have produced the same cumulative return if performance had been constant over the entire period. These are not the same as cumulative returns, which would add the year-by-year gains.
A calculation for a period of less than a year as if the period were a whole year, taking compounding into account. An annualized return gives you a better idea of how a stock or fund performed and makes it easier to compare them over the long term. Securities that have the same average return may have different annualized returns. For example, it's possible for a stock or fund to have a respectable average return but a negative annualized return if a big drop in the third year offsets gains in the first two years.
