said Wednesday it is supplying new data for mutual funds and exchange traded funds to show how the average investor have fared in a fund over a period of time.
Morningstar Investor Return
gives an estimate of the return earned collectively by all investors in a fund, taking into account all cash inflows and outflows from purchases and sales, as well as the growth in fund assets. It complements the more traditional metric of total return, which measures what investors could have earned if they purchased and held the fund, reinvesting in all assets, over a period of time.
Investor return places a greater amount of emphasis on periods in which fund assets are larger. Morningstar computes one-, three-, five-, and 10-year trailing and annual investor returns.
Morningstar is rolling out investor return data in products including Direct, Advisor Workstation, Principia and Licensed Data, this month. The data can be accessed by individual investors starting early next month.
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