What does performance mean?

The performance of an investment is a measurement of the change in value (up or down). This can be historical performance (how it has performed in the past), or potential performance (based on how much you are investing and what a reasonable expectation of return is on a particular investment). It is important to note that past performance is never a guarantee of future returns. But looking at performance of an investment over a period of time is another tool in your informed investing arsenal.