What is it about?
Most finance websites do not include dividends in 'compare' charts on their websites, this makes income generating stocks/ETFs/Mutual Funds look bad relative to no income assets.
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Why is it important?
Finance websites show capital growth only on their charts, especially in the Comparative mode. This biases charts against high income assets such as bonds or dividend-paying ETFs or stocks, eg TLT, DVY, XLU etc.
Perspectives
This creates ranking inversion and an optical bias against income-generating assets. Finance portal sites know of this, since I wrote to them in 2008, but haven't remedied the issue, or put in an option to include dividends in the cumulative return charts.
Professor Pankaj Agrrawal
University of Maine
Read the Original
This page is a summary of: What Is Wrong with this Picture? A Problem with Comparative Return Plots on Finance Websites and a Bias Against Income-Generating Assets, Journal of Behavioral Finance, December 2010, Taylor & Francis,
DOI: 10.1080/15427560.2010.526260.
You can read the full text:
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