Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

Of the many ways to measure an investment, time- and dollar-weighting are two of the most common. The time-weighted return on investment tells you how it performed objectively. If someone placed $1 in ...

What Is Time-Weighted Return? 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. This method is ...