I'm looking at this data for $PFUNX, and there are two numbers associated with the returns.

    • YTD of 2.24%
    • Yield of 3.77%

    So does this mean that the total return since January 1st, 2026 is actually (1+2.24%)x(1+3.77%/12)365/83? The final term is 3.77%, and it's the interest from a 3.77% bond that has 83 days of it producing interest.

    What's the TOTAL return of this bond fund?
    byu/throwRA_157079633 inpersonalfinance



    Posted by throwRA_157079633

    4 Comments

    1. I’m not an expert on bonds, but my understanding is that “return” is historical and “yield” is a current projection of future interest income.

      For example, say there’s a 5% bond issued at $100. If the day after it’s issued, rates go up to 6%, then the bond is now worth less (because why would you spend $100 on a bond paying 5% when you can buy one paying 6%).

      In theory, the bond price should fall to $83 or so, since 5% at a cost of $83 is the same as 6% at a cost of $100. (Imagine someone with $500 — they can buy 5 of the 6% bonds at $100 each or 6 of the 5% bonds for $83 each).

      So the return on a person after one day (no appreciable interest earned) who purchased a 5% bond for $100 is -$17 as their bond value has decreased, or -17%. But their yield is 5% / ($83) = 6%.

      Thus return and yield are not directly linked.

      Note: I’m NOT an expert on this, so if I’m wrong hopefully someone will correct me.

    2. “YTD Return = 2.24%” is the total return (**not** a rate) from 1/1/2026 to EOD 2/27/2026 assuming dividends have been reinvested instantly. Note the downward price movement since … literally the next business day… isn’t included. The actual YTD total return (until 3/20/2026) is -3.4%, extrapolated to a -14.79% CAGR. (CAGR is total *rate* of return, in case this is what you are after.)

      Yield is the dividend/interest distribution yield (this *is* an annualized rate). Yield does not include (unrealized) capital gain/loss due to price movements. It’s purely based on the monthly/quarterly distributions divided by the share price before distribution. Yield usually mean either of the two and does not include capital gain distributions:

      * SEC Yield, using a standardized formula required by law, usually in the 30 day range
      * Trailing Twelve Month (TTM) Yield

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