Advertised vs. Realized Yield

Yield & Returns · Lesson 5.1

Advertised yield is the figure a product shows on its website or app. Realized yield is what a holder actually earns over the time they hold it, and the two may differ. A quoted yield may be historical, such as a 7-day or 30-day figure, or projected, and it may be shown gross or net of fees.

What you earn also depends on entry and exit costs, when distributions are paid, how much cash the product holds back for redemptions and how the underlying rates move while you hold it.

Wally’s note: 18%* *measured on one great tuesday

Check how the quoted yield is calculated: over what period, and before or after which fees.

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