Time-weighted return (TWR) calculates an investment portfolio or fund's performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

Being under the illusion that you are earning a high rate of return when your true return is sub-par often leads to overconfidence, which is a performance killer. Money-weighted returns (also called ...

The mechanics matter here. Stock Advisor's return figure is calculated using the time-weighted return method, confirmed in the Motley Fool return calculation disclosures — the same methodology ...

What Is Time-Weighted Return? Time-weighted return (TWR) is a method of measuring investment performance that accounts for the impact of cash flows and the timing of those flows. This method is ...