Total return measures the evolution of an investment by taking account of its price and distributed income, such as dividends, under a defined reinvestment assumption. It offers a broader view than price alone, but it is neither a guaranteed gain nor a copy of your personal result after costs and taxes.
Short answer
When reading a share or an index, separate price change from total return. A price increase says nothing about distributed income. A theoretical total-return series may not match your own outcome because purchase dates, costs, taxes and income treatment matter.
Price, dividends and total return
Price change compares a starting and ending price. It is useful but excludes distributions. Total return adds income while assuming a defined reinvestment method.
SIX distinguishes price-return, net-return and total-return index series. A total-return series assumes dividends are reinvested before withholding tax, while a net-return series applies a withholding convention. These series answer different questions.
Why two performance figures can differ
Two displayed returns can differ without either being wrong. They may use different dates, indices, currencies or dividend conventions. Before comparing them, check the exact index name, period and return type.
This matters for Swiss markets. The SMI guide helps identify what the index actually measures.
Reading an individual share
For a share, separate four elements: price, any dividends, your holding period and the costs of your own account. An investor buying after an ex-dividend date or selling before a distribution will not match a theoretical full-year series.
Do not infer a company's quality from one yield figure. A dividend can change, be reduced or not be paid. Read Swiss dividend shares in a broader context.
Key points
Frequently asked questions
Does total return always include taxes?
No. It depends on the series. Total return can assume reinvestment before withholding tax, while net return applies a withholding convention. Read the index methodology.
Does high total return mean a share is low risk?
No. It describes past evolution under a defined method. It says nothing about future distributions, volatility or possible losses.
Can I compare my broker statement directly with an index?
Only with care. Your statement reflects your dates, fees, currencies and tax treatment. An index is a comparison point, not a replica of your result.