Time-weighted return

Time-weighted return is a way of measuring how much money has been made or lost on an investment over a certain period of time. Think of it like a report card for how your investment did compared to other investments. It takes into account how much money was invested, when the money was invested, and how it changed over time. For example, let's say you invested $500 at the start of the year, and the value of your investment changed over the course of the year. At the end of the year, time-weighted return would tell you how much money you made or lost compared to someone else who invested the same amount but at different points of the year.