APY aimed/ APY historical

What Are APY Aimed and APY Historical, and How Do They Differ?

APY Aimed refers to the projected Annual Percentage Yield. It indicates the expected annual return, including the effects of interest and compounding, under certain market conditions.

APY Historical, on the other hand, shows the actual yield an investment has delivered over a specific past period. It reflects the real return based on historical performance, including compounding and interest.

Why Do These Matter for Investors?

APY Aimed gives investors an estimate of potential returns, helping them assess if an investment aligns with their financial goals. It’s a forward-looking figure based on current conditions and projections, giving insight into what might be expected. APY Historical, in contrast, provides a factual account of past performance. This helps investors evaluate how reliable or consistent an investment has been and compare it with other options or benchmarks.

Example

A real estate investment trust (REIT) might project an APY Aimed of 8%, meaning that, based on current forecasts, investors could potentially earn this return annually. However, its APY Historical could be 6% over the last five years, showing the actual average return investors received during that period. By comparing these metrics, investors can weigh the potential future performance against proven past results.