Also called compound annual growth rate, annualized return
CAGR
Total return restated as a steady yearly rate, which makes runs of different lengths comparable.
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- Total return — What the account gained or lost across the whole test, start to finish.
- Sharpe ratio — Return per unit of volatility. It asks how much turbulence you endured for the gain, so a smoother path scores better than a wild one that ends up level with it.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
