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Total return, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period
Prices indexes don't count dividends, only the price of the stocks Gross total return indexes reinvest as much as possible of a company’s dividend distributions Total returns for periods longer than one year are expressed in terms of. Net return indices include dividends after the deduction of withholding taxes
The total return is time weighted, while the investor return is dollar weighted using aggregate shareholder cash flows Neither are reflective of your personal performance. By adding the returns to their respective investments. Price return and total return are two different ways to measure the performance of stocks, bonds, and etfs
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Here are the key differences
Price return, also known as capital. A gross rate of return is reflective of an investment’s return before expenses or any deductions A net rate of return is the investment’s return after costs, such as taxes, inflation,. The gross rate of return, a fundamental metric in investment evaluation, reflects the total return on an investment without factoring in expenses
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