performance drag meaning
[Finance]
The negative effect of transaction costs on the performance of an investment. Performance drag is most commonly attributed to brokerage commissions, but there are many other factors such as timing, bid-ask spreads and other opportunity costs that can cause the return of an investment to lag behind the return seen in the market.
The negative effect of transaction costs on the performance of an investment. Performance drag is most commonly attributed to brokerage commissions, but there are many other factors such as timing, bid-ask spreads and other opportunity costs that can cause the return of an investment to lag behind the return seen in the market.
Examples
- I had no idea how negligable the performance drag can be.
- Barring an incredible next couple of months, the performance drag should finally catch up with the fund when its latest fiscal year ends.
- When Working Woman eliminated the bad stock performance of the three biggest performance drags ( Autodesk, Dorsey Trailers, and Discovery Zone ), the 66 remaining firms still fell slightly short of the Nasdaq Composite.
- "' Keith Black "'( 1926 in Huntington Park, California & ndash; 1991 ) was an American producer of high performance drag racing engines, often used in Top Fuel and Tractor pulling applications.
