Trailing 12-Month Yield

Trailing 12-month yield (TTM yield) is the percentage of income investors received from an investment in the last 12 months.

TTM Yield is commonly used with funds and is calculated by taking the weighted average of the underlying holdings’ yields. For example, if a fund’s underlying holdings produce an income of $1,000 in the trailing 12 months, and an investor has $100,000 in the fund, the fund’s TTM yield is 1% (1,000/100,000).

TTM yield should be considered an estimate of yield, as it may not always represent income received by all investors. Backward-looking income estimates like TTM yield can’t accurately predict future income, so it may be better to use SEC yield for forward-looking decisions.