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HIGHLIGHTS​

  • ‘ETF’ is the most searched for investment abbreviation by Americans with 114,160 annual searches looking for a definition
  • The abbreviation ‘DFM’ is the second most searched for with 26,830 online yearly searches
  • ‘IRR’ (23,840), ‘NAV’ (23,170) and ‘AUM’ (13,880) are among the other highly searched for investment abbreviations within the US
  • Money.co.uk defines the United States’ top ten most searched for abbreviations and how you can apply them to your own financial investments.

Whether you’re looking to enter the financial world for a strategic career move or simply have an interest, the abundance of financial terms and abbreviations can be overwhelming. But which investment abbreviation is the most misunderstood?

Interested in finding out, experts at money.co.uk utilized online analytics tool Google AdWords to establish the ten most searched for investment abbreviations.

We really hope you find this release useful. If you use the data, please provide a link to https://www.money.co.uk/share-dealing.htm who commissioned the data. A linked credit allows us to keep supplying you with future content that you may find useful.

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The Results: 

Rank Investment Abbreviations US Average Annual Search Volumes

1

 ETF

114,160

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2

 DFM

26,830

3

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 IRR

23,840

4

 NAV

23,170

5

 AUM

13,880

6

 BPS

11,200

7

 APR

10,330

8

 EBITDA

8,220

9

 P&L

3,100

10

 EPS

2,930

Source: money.co.uk

The Definitions of the US’ Most Searched Financial Abbreviations:

  • ETF (114,160 searches) ‘Exchange Traded Funds’ – A type of investment fund that can be traded via a stock exchange
  • DFM (26,830 searches) ‘Discretionary Fund Manager(ment)’ – A form of professional investing where investments are made on behalf of clients through a range of securities
  • IRR (23,840 searches) ‘Internal Rate of Return’ – An analysis metric used to estimate the profitability of investments
  • NAV (23,170 searches) ‘Net Asset Value’ – The value of an entity’s assets after the value of its liabilities have been deducted
  • AUM (13,880 searches) ‘Assets Under Management’ – A measurement of the total market value of all assets an individual or institution owns/controls
  • BPS (11,200 searches) ‘Bespoke Portfolio Service’ – A tailored investment plan or service which is personalized for an individual’s specific investment and financial needs
  • APR (10,330 searches) ‘Annual Percentage Rate’ – Used for comparison of credit/store cards and loans, it is a percent of the amount you borrow that you will pay back as interest
  • EBITDA (8,220 searches) ‘Earnings Before Interest, Taxes, Depreciation, and Amortization’ – A measure of a company’s overall financial performance, including earnings, tax and interest figures
  • P&L (3,100 searches) ‘Profit and Loss’ – A financial statement documenting the total income and expenses over a given time
  • EPS (2,930 searches) ‘Earnings Per Share’ – The proportion of profit a company has per share of common stock.

Money.co.uk found that ‘ETF’ is the financial abbreviation that Americans understand the least, represented by around 114,160 online searches per year trying to discover the meaning.

‘DFM’ is in second position, as there is an average of 26,830 yearly searches from Americans wanting to understand what the financial abbreviation stands for.

In third position is ‘IRR’, with an average of 23,840 yearly online searches from Americans trying to educate themselves on what the investment term means.

‘NAV’ (23,170), ‘AUM’ (13,880) and ‘BPS’ (11,200) are among the other financial abbreviations that receive 10,000 or more online searches a month from residents within the US (respectively ranking fourth, fifth and sixth).

Completing the top ten is ‘EPS’ with an average 2,930 online searches per annum.

Salman Haqqi, personal finance expert at money.co.uk, commented on the findings:

“Understanding financial terms is of the utmost importance when navigating investments that will undoubtedly involve many documents and contracts. Americans’ searches show a desire to expand their knowledge and get to grips with some of the more complex financial terminology, which will allow them to capitalize on investment opportunities.”

Methodology:

  1. Money.co.uk sought to establish and define the financial abbreviations that are searched for the most by Americans.
  2. To do so, money.co.uk compiled a seed list of under 300 commonly used financial terms and their abbreviations via trusted online sources, including: TheMuse.com, CNBC.com, AKG.co.uk, and Investors.natwestgroup.com.
  3. Next, they utilized online analytics tool Google AdWords to calculate the US average online yearly searches of each individual abbreviation.
  4. Money.co.uk accounted for alternate online search variations of each abbreviation, in addition to the term itself; ‘What is HMRC investment/finance’, ‘HMRC meaning in investment/finance’, ‘What does HMRC stand for in investment/finance’. Some terms were omitted due to differing search intent.
  5. The financial abbreviations were then ranked from highest to lowest search volumes.

Data was collected on December 1st 2021 and is correct as of then but is subject to change.

The full dataset can be found here: Money.co.uk – DATA – Least Understood Investment Abbreviations 

 

IMAGE:IBM

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