What is the 'Time-Weighted Rate of Return (TWRR)'? Definition & meaning

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

More terms

Dividends

Find out what dividends are and how they can contribute to the growth of your investment portfolio.

Collective investment scheme

Learn what's a collective investment scheme

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Yield curve

A graphical representation of interest rates over time

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

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).

Time-Weighted Rate of Return (TWRR)