EPISODE · Aug 7, 2025 · 9 MIN
Price Return vs Total Return
from Why Advice?
Watch episode on youtube: https://youtu.be/BWLOwNIEx0wPublished November 2024. A common misconception for investors is not being aware of price and total return, along with the difference between the two.In this video we compare two versions of the S&P/ASX 300 Index to see how wide the difference in returns can be. Vanguard's VAS attempts to track the total return version of the index.Not knowing there is a price and a total return index can lead to confusion over historic returns when an investor sees a chart, or a quoted price, and it's only factoring in the price change. Quite often the media, either aware or not, will use price returns, which will add to the misinformation, leaving investors believing returns have been lower than they are. The price vs total return issues extends beyond indexes to stock prices and ETFs. Google is a common place to search for an ETF or stock code and the charts returned by google only show the price changes.In an attempt to address this problem, Mark Hebner of ifa.com has launched a petition to persuade the media to change their ways and start reporting total returns as standard. Sign Mark's petition at http://www.ifa.com/petition.Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/ https://www.mfg.com.auMancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253. Hosted on Acast. See acast.com/privacy for more information.
What this episode covers
Watch episode on youtube: https://youtu.be/BWLOwNIEx0wPublished November 2024. A common misconception for investors is not being aware of price and total return, along with the difference between the two.In this video we compare two versions of the S&P/ASX 300 Index to see how wide the difference in returns can be. Vanguard's VAS attempts to track the total return version of the index.Not knowing there is a price and a total return index can lead to confusion over historic returns when an investor sees a chart, or a quoted price, and it's only factoring in the price change. Quite often the media, either aware or not, will use price returns, which will add to the misinformation, leaving investors believing returns have been lower than they are. The price vs total return issues extends beyond indexes to stock prices and ETFs. Google is a common place to search for an ETF or stock code and the charts returned by google only show the price changes.In an attempt to address this problem, Mark Hebner of ifa.com has launched a petition to persuade the media to change their ways and start reporting total returns as standard. Sign Mark's petition at http://www.ifa.com/petition.Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/ https://www.mfg.com.auMancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253. Hosted on Acast. See acast.com/privacy for more information.
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Price Return vs Total Return
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