DIY Investor Magazine
| Oct 2017
22
PRICE RETURN CHARTS VERSUS TOTAL RETURN
CHARTS
Finally, watch out for whether you’re being shown a price
return or a total return chart.
A price return chart reveals historical buying prices but
discards the distributions side of performance.
A total return chart assumes all distributions are
reinvested and gives the complete performance picture.
Cecklist: What to look out for when comparing ETF
performance
Here’s a quick summary of the important factors when researching
ETF’s on different sites:
• Do prices use the official NAV, or stock exchange quotes?
• Which stock exchange provided the prices?
• What time were the prices taken?
• Are distributions included?
• If yes, are the distributions added onto the NAV (or stock
exchange price), or are they reinvested?
• Which currency is being used?
• Which exchange rate is used for the currency conversion?
• Does the website show price return or total return charts?
