May 14, 2025 · What Is the Time-Weighted Rate of Return (TWR)? The time-weighted rate of return (TWR) measures a portfolio's compound growth rate while excluding the impact of deposits and …

The time-weighted return (TWR, [1][2] TWRR, TWOR or TTWROR for true time-weighted rate of return) is a method of calculating investment return, where returns over sub-periods are compounded …

Guide to what is Time-Weighted Return. Here, we compare it with money-weighted returns, and explain its formula, examples, and importance.

Jun 27, 2023 · Calculating money-weighted return is similar to calculating an investment’s internal rate of return (IRR). The money-weighted rate of return (MWRR) is like the portfolio’s internal rate of return …

Aug 14, 2024 · Time-weighted return calculates a fund’s compound return using sub-periods, which are created each time cash moves into or out of the fund or portfolio. In doing so, TWR shows the real …

Nov 21, 2024 · There are various methods to measure the performance of an investment portfolio, but calculating the time-weighted return (TWR) is the most common.

Mar 28, 2024 · Time weighted returns (TWR) is an indispensable metric used to evaluate the time-weighted rate of return and investment portfolio performance while adjusting for external cash flows. …

Sep 22, 2025 · Time-weighted return (TWR) is a method of measuring investment performance that accounts for the impact of cash flows and the timing of those flows.

To calculate the time weighted return for a particular period, the period in question has to be divided into sub-periods, at each point that a cash flow occurred. You also need the value of the investment at …

Sep 11, 2024 · Understanding time-weighted return (TWR) helps investors measure portfolio performance accurately without the distortion caused by external cash flows. TWR breaks down the …