/

Time-Weighted Rate of Return (TWRR)

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

More terms

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Collective investment scheme

Learn what's a collective investment scheme

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

You’re just minutes away from commission-free investing

When you invest, your capital is at risk

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2025 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.