DEFINITION of 'Estimated LongTerm Return'
A unit investment trust's estimated return over the life of the portfolio, calculated according to formulas proposed by the Securities and Exchange Commission (SEC). The return is calculated as the annual percentage return based on the yields of all the underlying securities in the portfolio, but is weighted to account for each security's market value and maturity. The return is presented net of estimated fees and the maximum offering price, but does not account for delays in income distributions from the fund.
BREAKING DOWN 'Estimated LongTerm Return'
When looking to invest in a unit investment trust, you will be shown both the estimated longterm return and estimated current return. The estimated longterm return may be the metric that you should look at if you are planning on investing for the duration of the trust. This will give a fairly accurate estimation of the return on the portfolio. It is similar to the yield to maturity measure of a single bond extended to a portfolio, with some adjustments.

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How can I calculate the expected return of my portfolio?
Understand the components of the equation used to calculate the expected return of an investor's portfolio. Learn why the ... Read Answer >> 
How is the expected market return determined when calculating market risk premium?
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