WHY SHORT-TERM RETURNS CAN BE MISLEADING

TIMING is everything, especially when it comes to the calculation of investment returns. It brings to mind the adage, "There are three kinds of lies: lies, damned lies and statistics."

- NELLIE S. HUANG

Data can be misleading, essentially, and context matters.

Take, for instance, one-year performance results. Last month, the exchange-traded funds listed in the table below that track the S&P 500, including Vanguard S&P 500, iShares Core S&P 500 and State Street SPDR S&P 500, each sported an 18% oneyear return for the period ending in March. This month, those funds have a one-year return through April of better than 31%.