Whats the difference between a total return and an annualized return?
Both your total return and annualized return are important. The total return reflects gains and losses on your investment during the period, and it includes income from dividends and interest over a given period of time. Your annualized return is an average annual return that shows what your return would have been each year for the time periods shown. While past performance doesn’t guarantee future results, this number can show you if an investment achieves consistent returns over longer periods of time. Those that do are typically considered to have more value for long-term planning.
