I noticed that Yahoo or Google Finance underestimates mutual fund returns. For example, if I chart MCVIX on Bloomberg Terminal vs. Yahoo/Google finance, the cumulative performance numbers are meaningfully different (Yahoo/Google is lower).
Perhaps Yahoo/Google does not calculate dividends as total returns?
This does not seem to be an issue for ETFs though. Thanks for reading.
Neither Yahoo nor Bloomberg assumes dividend reinvestment for ETFs (you can get a chart in Bloomberg with reinvestment using the TRA function). I’m not sure about mutual funds. It seems strange that either service would plot anything other than the closing price.
I always assumed Yahoo Finance charts just showed price return.
You are correct. The chart doesn’t account for capital gains distributions or dividends.
For better results, use this:
You’re welcome.
I thought they have adjusted price, which take into account the dividend.
Look at Pioneer Equity Income as an example. You may have to move everything to 5 years…not sure that stays consistent in the links.
http://performance.morningstar.com/fund/performance-return.action?t=PEQIX
https://www.google.com/finance?q=peqix&ei=qdysV6n4GcSsjAHAzKLwDQ
http://finance.yahoo.com/quote/PEQIX/?p=PEQIX
Besides, Morningstar just looks better.