Glossary - Relative Return
The purpose of this glossary is to provide definitions — and links for further exploration — of topics and terminology that may be somewhat unique to Manifest Investing. We don’t try and include every financial term known to man although a few are included here because they’re at the “core” of what we do and use. If you’re searching for a definition and don’t find it here, we’d encourage you to try Investopedia.com or InvestorWords.com . If you see a word or phrase commonly used at Manifest Investing and you feel that it should be included here, please send your suggestion to manifest@manifestinvesting.com
Relative Return: The difference between an annualized rate of return for an investment or portfolio versus what would have been achieved by investing in a suitable benchmark. If your portfolio gains 14% (annualized) while the total stock market advances 11% — you would have a relative return of 3%.