YTD Return vs Yield: Difference and Comparison

There exist several investment options today where one can invest their money. Some options include uncertainties and risks, but some options are extremely secure, and the return is also good.

However, people keep track of their investment money and other profits that they earn by adapting a schedule or a plan. They do so within a certain period. Two such concepts are 1. YTD Return and 2. YTD Yield.

Key Takeaways

  1. Year-to-Date (YTD) Return measures the percentage change in an investment’s value from the beginning of the year to a specific date.
  2. The yield represents an investment’s income as a percentage of its current market value or original cost.
  3. YTD Return is useful for tracking an investment’s performance over a specific time, while yield provides insight into an investment’s ongoing income generation.

YTD Return vs Yield

YTD (Year-to-Date) return is the percentage change in the value of an investment from the beginning of the calendar year to the current date. Yield is a measure of the income generated by an investment, expressed as a percentage of the investment’s value to access income potentials.

YTD Return vs Yield

The YTD return is the overall calculation of the profit and loss that takes place during a certain amount of time with the entire investment.

It helps keep track of the investment and various other updates about it. A stakeholder also acquires the knowledge of their investment whether they have gained profit or suffered a loss.

The YTD yield is the total calculation of the income that is returned and gained with an investment from a certain period till the present date.

It is the year-to-date yield that the stakeholders study to gain an income and keep track of it for their invested money.

Comparison Table

Parameters Of ComparisonYTD ReturnYTD Yield
Meaning/ DefinitionThe YTD return is the overall calculation of the profit and loss that takes place during a certain amount of time with the entire investment. The YTD yield is the total calculation of the income that is returned and gained with an investment from a certain period till the present date.
Calculation ofThe year-to-date profit and loss.The year-to-date income.
Further investment decisionFurther investment decisions become easier with the help of year-to-date returns.Further investment decisions do not become easier with the help of year-to-date yield as it only entails the income and thereby does not provide clarity.
TypeBackward-lookingForward-looking
Reflected asThe difference between the holding’s value.Percentage.

What is YTD Return?

The overall calculation of the profit and loss that investment has from a certain year to the present date is known as the YTD return or the year-to-date return.

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It gives clarity to the stakeholder about their investments, and it also helps a lot in making further investment decisions. 

Whenever a stakeholder invests their money by choosing a certain investment option, they either gain profit or suffer loss. However, keeping track of these transactions is one of the important things while investing money.

That is where a year-to-date return plan is important. It helps people in many ways to make their decisions regarding their investments.

Many investors use this plan or stick to this schedule to make a comparison of their investment profit and loss from the previous years and thereby make changes to it.

It also helps the investor to make important calls regarding their investments. The entire year-to-date plan also helps to analyze the transactions.

The year-to-date return is a backwards-looking strategy to calculate the profits, losses, dividends, and capital gains.

The initial investment that the investor makes can also be compared to the current investment, which gives clarity to the investor if the investment has increased or decreased since then.

What is YTD Yield?

The YTD yield is a year-to-date yield where the total income that is gained on investment is calculated. A stakeholder holds security on which they gain income through the time of the investment.

Various factors are taken into consideration when the total income is calculated that is gained over an investment.

The total income that is gained on investment is expressed in terms of the percentage rate.

Various factors like the ongoing market value and/ or the ongoing face value, cost of the investment etc., are taken into consideration while calculating the annual income.

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It also depends on the security if it is predicted or known as the value of some securities that experience fluctuations.

Various yield options are available for a bond yield depending on the nature of the investment. The bond interest rate is issued by the investor, which is a fixed amount, and that is known as the bond yield.

The investor can withdraw the yield before the maturity period of the investment.

There are several benefits of the year-to-date yield.

Investor understands the overall performance of their investment, and they also come to know about their rate of interest, which is the total return acquired on the initial investment. It is forward-looking and less accurate than the return.

Main Differences Between YTD Return and Yield

  1. The YTD return is the overall calculation of the profit and loss that takes place during a certain amount of time with the entire investment. On the other hand, the YTD yield is the total calculation of the income that is returned and gained with an investment from a certain period till the present date.
  2. The YTD Return is reflected as the difference between the holding’s value. On the other hand, the YTD revenue is reflected as the percentage rate.
  3. In the YTD return, the year-to-date profit and loss are calculated. On the other hand, in the YTD yield, the income is calculated.
  4. The YTD return is back-looking. On the other hand, the YTD yield is forward-looking.
  5. The YTD return is more precise. On the other hand, the YTD yield is less accurate.
References
  1. https://www.jstor.org/stable/2351740
  2. https://www.journals.uchicago.edu/doi/abs/10.1086/516389

Last Updated : 13 July, 2023

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