CAGR smooths annual growth rates ... The formula assumes a single initial investment. If you make contributions during the measurement period, the calculated CAGR would overstate actual growth.

While widely used, TWR does not reflect an investor's actual dollar-weighted ... to calculate the TWR: Use this formula to determine the compounded rate of growth of your portfolio holdings.

See how we rate investing products ... necessarily reflect an investment's actual performance. One of the most powerful components of investing is compound growth. This is a natural phenomenon ...