A total return swap (TRS) is a type of financial derivative contract in which one party agrees to pay the other party the total return of a specified asset or index, including any capital gains, dividends, and interest payments. The two parties involved in the swap are typically a bank or other financial institution and an investor. The investor pays a fixed or floating rate of interest to the bank, and in return, the bank pays the investor the total return of the asset or index. The total return swap is a popular way for investors to gain exposure to an asset or index without actually owning it.