Sep 23, 2025 Price Return vs. Total Return: Why a Statement’s “Gain/Loss” Isn’t the Whole Story

When you open an account statement or portal, the “gain/loss” next to a holding can look like the final verdict on performance. In most cases, that figure reflects price return only—how the market value of your shares changed since purchase—not the total return of the investment. Total return includes price changes plus the income the investment paid you along the way (and, where applicable, the effect of reinvesting that income).

Price return (the number you often see)

Price return measures price change over time and excludes income. For example, if a fund’s market price moved from $10.00 to $9.80, the price return is −2%. That does not reflect any interest or dividends you received in the period.

Total return (the fuller picture)

Total return combines:

  • Price changes
  • Income distributions (interest/dividends)
  • The effect of reinvesting those distributions (if you choose to reinvest)

So, if price return is −2% and you received +4% in income, the illustrative total return would be +2%. This is a simple arithmetic example to show the concept; it is not actual or predictive performance.

Why does this gap often show up in bond funds

Income can be a meaningful part of bond-fund results. That’s why looking only at the “gain/loss” line (price return) may understate what you actually earned from interest over time. While experiences vary across funds and market conditions, income is frequently a major contributor for bond strategies.

How to read your statement with total return in mind

  • The “gain/loss” line typically reflects price return (market value change) only.
  • Total return = price changes + income received (and reinvested).
  • Consider both pieces to understand overall results across time.

 

Important disclosures

This material is for informational/educational purposes only and is not investment, legal, accounting, or tax advice; not a recommendation to buy or sell any security; and not a solicitation of any specific strategy. All investments involve risk, including possible loss of principal.

About illustrations and examples: Any figures or examples provided are hypothetical and for illustrative purposes only, are not based on any specific product or client account, and do not reflect the impact of advisory fees, fund expenses, transaction costs, taxes, or inflation. Assumptions (e.g., reinvestment of distributions) may not reflect your situation. Actual results will vary. No guarantee is implied or should be inferred.

Risks of bond funds (non-exhaustive): interest-rate risk (bond prices generally fall as rates rise), credit/default risk, inflation risk, reinvestment risk, liquidity risk, and—for strategies with non-U.S. exposure—currency risk.

If you have questions about how these concepts apply to your portfolio, please consult a qualified financial professional.

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