30-Day SEC Yield
30-Day SEC Yield represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund's share price at the end of the 30-day period.
Active Share
Active share indicates the proportion of portfolio holdings that are different than the benchmark. A higher active share indicates a larger difference between the benchmark and the portfolio.
Alpha
Alpha measures the difference between a fund’s actual returns and its expected performance, given its level of risk as measured by beta.
Average Coupon
Average coupon is the weighted average coupon rate of each bond in the portfolio.
Average Effective Duration
Average effective duration provides a measure of a fund's interest-rate sensitivity. The longer a fund's duration, the more sensitive the fund is to shifts in interest rates.
Average Life Progression
Average Life Progression is a measure of repayment speed for a collateral pool (for example, a collection of mortgages may serve as the collateral pool for an issuance of mortgage-backed securities).
Beta
Beta measures volatility in relation to the fund's benchmark. A beta of less than 1.0 indicates lower volatility while a beta of more than 1.0 indicates higher volatility than the benchmark.
Distribution (12b-1) Fees
12b-1 fees represent the annual charge deducted from fund assets to pay for distribution and marketing costs.
Downside Capture
Downside Capture Ratio measures performance in down markets relative to the benchmark.
Effective Long
Effective Long is the sum of the portfolio’s long positions (such as common stocks, or derivatives where the price increases when an index or position rises).
Effective Net
Effective Net is the Effective Long minus the Effective Short.
Effective Short
Effective Short is the sum of the portfolio’s short positions (such as, derivatives where the price increases when an index or position falls).
Gross Expense Ratio
The gross expense ratio reflects the total annual operating expenses of a mutual fund, before any fee waivers or reimbursements.
Information Ratio
Information ratio is a portfolio’s excess return (over its benchmark), divided by the amount of excess risk taken relative to the benchmark.
Investment Grade Bonds
Investment Grade Bonds are those securities rated at least BBB- by one or more credit ratings agencies.
Market Capitalization
The market capitalization of a company represents the current stock-market value of a company's equity. It is calculated as the current share price times the number of shares outstanding as of the most recent quarter.
Net Expense Ratio
The net expense ratio reflects the total annual operating expenses of a mutual fund after taking into account any fee waiver and/or expense reimbursement. The net expense ratio represents what investors are ultimately charged to be invested in a mutual fund.
Non-Investment Grade Bonds
Non-Investment Grade Bonds are those securities (commonly referred to as “high yield” or “junk” bonds) rated BB+ and below by one or more credit ratings agencies.
Portfolio Turnover
Portfolio turnover is a measure of how much buying and selling of securities a portfolio does during a particular period. A turnover of 100 percent means the portfolio has sold the equivalent of every security in its portfolio and replaced it with something else over a set period.
Redemption Fee
A redemption fee is a fee charged to an investor when shares are sold from a fund. This fee will be charged by the fund company and then added back to the fund.
Relative Results
Relative Results are the difference between the Fund’s performance and the performance of the reflected benchmark.
R-Squared
R-Squared is a measure that represents the percentage of a portfolio’s movements that can be explained by movements in a benchmark. A measure of 100 indicates that all of the return can be explained by movements in the benchmark.
Sales Charge
Also known as loads, sales charges represent the maximum level of initial (front-end) and deferred (back-end) sales charges imposed by a fund.
Sharpe Ratio
Sharpe Ratio is a risk-adjusted performance statistic that measures reward per unit of risk. The higher the Sharpe ratio, the better a fund’s risk adjusted performance.
Standard Deviation
Standard Deviation measures the degree to which a fund’s performance has varied from its average performance over a particular time period. The greater the standard deviation, the greater a fund’s volatility.
Upside Capture
Upside Capture Ratio measures performance in up markets relative to the benchmark.
Yield to Maturity (YTM)
Yield to Maturity (YTM) is the total return anticipated on a bond portfolio if the bonds are held to maturity.
Yield to Worst (YTW)
Yield to Worst (YTW) is the lowest potential yield that can be received on a bond portfolio without the issuers actually defaulting.
Market
Price
The market
price is the price at which ETF shares trade on an exchange throughout the day.
It is determined by supply and demand in the market and may differ from the
NAV. The market price is typically based on the official closing price or the
midpoint of the national best bid and offer (NBBO) at the time NAV is
calculated.
Net
Asset Value (NAV)
The Net Asset
Value (NAV) represents the per-share value of a fund's assets minus its
liabilities, calculated at the end of each trading day.
- For mutual funds, investors typically buy and sell shares directly with the fund at NAV, which may be adjusted for any applicable sales charges or redemption fees.
- For ETFs, shares are bought and sold on an exchange at market prices, which may be above (a premium to) or below (a discount to) the NAV. NAV is still calculated and published daily to help investors understand the value of the fund's underlying holdings.