What distinguishes un-annualized returns from annualized returns?

The distinction between un-annualized returns and annualized returns primarily revolves around the duration of the investment. Un-annualized returns reflect the total return over a specific period, which might be shorter than a year, while annualized returns convert those returns into a yearly figure. This conversion provides a standardized way to compare returns across different investments or time periods, allowing investors to understand the expected return on an annual basis.

For example, if an investment generates a return of 10% over six months, the annualized return would reflect what that 10% would equate to if it were projected over a full year. This makes it easier for investors to gauge performance relative to other investments or benchmarks that are often presented on an annual basis.

The other factors — type of investment, tax implications, and market conditions — play roles in investment performance but do not specifically differentiate between un-annualized and annualized returns as much as the duration of the investment does. Thus, the critical element here is the time frame over which the returns are measured and expressed.