Author Topic: Discrepancy between ETF performance between Google Finance and official one?  (Read 1033 times)

WackyTomato

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Guys, can I ask what might be a stupid question for some of you?

My question concerns ETF ticker CBO (on Toronto Stock Exchange).

According to Google finance, the fund performed minus 7.25% over the past 5 years (https://www.google.ca/finance?q=TSE%3ACBO&ei=tIdhVcnTBtXLU4vBgagF)

According to the fund's official website (https://www.blackrock.com/ca/individual/en/products/239420/ishares-15-year-laddered-corporate-bond-index-fund?switchLocale=Y) the total return for 5 years is advertised as being 2.65%.

What gives?   I figured it's because the official one includes reinvestments of distributions, but I just want to make sure.

Thanks a lot,

Olivier

GreatLaker

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I am not that familiar with Google Finance, and don't see anything that indicates if it is price return or total return, or a way to toggle between, but it does look like price return only.

Go to the iShares link you provided and in the chart, click on Historical NAVs & Prices. Select 5 years and you will see a declining price chart similar to the Google chart.

Go to Morningstar.ca http://quote.morningstar.ca/QuickTakes/ETF/etf_ca.aspx?t=CBO&region=CAN&culture=en-CA on the quote tab select 5 years and you will see the same -7.25% that Google shows for the price.

Now go to the Morningstar Performance tab http://quote.morningstar.ca/QuickTakes/ETF/etf_performance.aspx?t=CBO&region=CAN&culture=en-CA and look at the 5 year performance. It shows 2.51% The difference between iShares 2.65% and Morningstar 2.51% is iShares reports as of Nov 30, and Morningstar reports as of last business day (Dec 9) indicating the recent decline in bond prices.

Maybe someone else can say how to get total return on Google.

WackyTomato

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Basically I'm just looking to confirm whether ETF performance as indicates on their own companies website is actually accurate.  I think it assumes reinvestments of all distribution, hence why it differs from Google Finance, Morningstar, etc.

GreatLaker

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iShares performance numbers and Morningstar numbers on the performance tab both correctly state total return for the fund, including price change and reinvested distributions.

Google finance numbers only show price change and exclude reinvestment of distributions.