Trailing vs Rolling Returns

Redefining the Conversation about Returns


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In a world of instant updates and daily stock market news, investors often fixate on chasing short-term returns or “beating the market.” This leads to dependency on trailing returns to determine “how well” an investment is performing.

But for investors with long-term goals, their focus should be, “Will I achieve my long-term goal on time?” Because of this, advisors should use rolling returns rather than trailing returns when choosing or evaluating investments and managers.