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Search for an ETF or holding
Search for an ETF or holding
Updated 3mo ago.
Updated 3mo ago.
Total return includes both the price appreciation of an investment and the income it generated (dividends, distributions, interest). It's the most complete measure of an investment's actual performance.
If you buy an ETF like VDY.TO (Vanguard FTSE Canadian High Dividend Yield) at $40 and after one year it's worth $42 and paid $1.50 in distributions, your total return is (42 + 1.50 - 40) / 40 = 8.75%. The price return alone would be only 5%. Ignoring distributions significantly underestimates your true return.
Many beginners only look at their ETF's price to evaluate performance. This is misleading, especially for ETFs that pay regular distributions. On this site, returns are calculated using the adjusted close price, which includes reinvested distributions, giving you the true total return.