When investing in mutual funds, investors often hear terms like CAGR, XIRR, and absolute return. These three are different ways of measuring returns, and each is used in different circumstances. If ...
Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. David Kindness is a Certified Public Accountant ...
XIRR, or extended internal rate of return, is a financial metric used to calculate the annualized rate of return for investments with irregular cash flows. Unlike simple return metrics such as ROI ...