CAGR (Compound Annual Growth Rate) normalizes returns to an annual rate, making different-length investments comparable. A 50% gain over 2 years = 22.5% CAGR. The same 50% gain over 5 years = only 8.45% CAGR. Always use CAGR when comparing investments of different durations.
In Canada, capital gains are 50% included in income (2/3 for gains over $250K, though this is subject to ongoing political debate). Dividends get favorable treatment via the dividend tax credit. Interest income is taxed at your full marginal rate. Holding investments inside a TFSA eliminates all of this tax drag.
⚠️ Past returns do not guarantee future results. Not investment advice.