Time-weighted return
InvestingDefinition
Standard fund-performance return that geometrically links sub-period returns and ignores the size and timing of cash flows. Compares pure investment performance.
Mutual funds and ETFs report TWR. The right metric for evaluating a manager's skill independent of investor decisions; the wrong metric for evaluating an investor's real-world results.
Mutual funds and ETFs report TWR. The right metric for evaluating a manager's skill independent of investor decisions; the wrong metric for evaluating an investor's real-world results.