Price return refers to the change in the price of an investment, not including dividends or other earnings. It is the simplest form of measuring an investment's performance, calculated by comparing the current price of the asset to its price at a previous time.
Price return is a straightforward metric that provides investors with a quick snapshot of how the value of an asset has changed over a period. It's particularly relevant for assets where dividends or other earnings are not a primary consideration, like non-dividend-paying stocks or commodities.
While price return is useful for a basic understanding of performance, it does not provide a complete picture of an investment's total returns. For a more comprehensive evaluation, total return – which includes dividends, interest and other earnings – should also be considered. Price return is best used in conjunction with other metrics to assess investment performance more holistically.
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