Down 0.7% YTD, an improvement from last month.
Down just shy of $1000 YTD. Pretty much flat.
I just downloaded Open Office to figure rate of return since ER in 2013, and I'm looking at 6.55% using XIRR function. .
And the roller coaster ride continues. I was down 2.43% on 9/30 and now I'm up 0.57%.....
YTD-2.8%. I seem to be in the ballpark with many others
And the roller coaster ride continues. I was down 2.43% on 9/30 and now I'm up 0.57%.....
Ok. Got me thinking. With such a wide range here how are you computing your YTD market return and how are you considering it against your benchmark ?
For me,
Current total balance of account
Less
Beginning balance jan 1 2015
Less
all contributions made by me if any
Less
all dividend income paid YTD
=
Adjusted market gain or loss YTD
As for benchmark, I'm using the ETF SPY...trading price now vs Jan 1
(excludes dividends)
Others ?
Ok. Got me thinking. With such a wide range here how are you computing your YTD market return and how are you considering it against your benchmark ?
For me,
Current total balance of account
Less
Beginning balance jan 1 2015
Less
all contributions made by me if any
Less
all dividend income paid YTD
=
Adjusted market gain or loss YTD
As for benchmark, I'm using the ETF SPY...trading price now vs Jan 1
(excludes dividends)
Others ?
The OP here. As the thread title says, it's "YTD investment performance," not to be confused with increase in asset, value of portfolio.
Ok. Got me thinking. With such a wide range here how are you computing your YTD market return and how are you considering it against your benchmark ?
For me,
Current total balance of account
Less
Beginning balance jan 1 2015
Less
all contributions made by me if any
Less
all dividend income paid YTD
=
Adjusted market gain or loss YTD
As for benchmark, I'm using the ETF SPY...trading price now vs Jan 1
(excludes dividends)
Others ?
The above is similar to what I do, except that there's no contribution for me, and I need to adjust for withdrawals. Also, I include all dividends received YTD. Dividends are part of investment returns, so why exclude them?
Ok. Got me thinking. With such a wide range here how are you computing your YTD market return and how are you considering it against your benchmark ?
For me,
Current total balance of account
Less
Beginning balance jan 1 2015
Less
all contributions made by me if any
Less
all dividend income paid YTD
=
Adjusted market gain or loss YTD
As for benchmark, I'm using the ETF SPY...trading price now vs Jan 1
(excludes dividends)
Others ?
The OP here. As the thread title says, it's "YTD investment performance," not to be confused with increase in asset, value of portfolio.
I would not think it appropriate to exclude dividends as papadad suggests.
For example, let's say the beginning is 100, dividends are 3 and appreciation is 10 and ending balance is 113. The return is 13%. Papadad would only get 10%. IOW, return includes dividends.
As for me, I get the annualized total return per a Quicken Investment performance report and then adjust it to a YTD amount by adjusting it to the power of n. IOW, a 3% annual return for 9 months would be [(1+3%)^(9/12)]-1 or 2.24% or a reasonable approximation would be 3/4 of the 3%.
All the research shows that rebalancing to the under performing sectors works. It forces you to buy low and sell high. The easy part is sitting back rationally and making that plan. The hard part is sticking to the plan when you are right in the middle of it. If it was easy to buy low, everyone would do it. Who wants to buy something that sucks right now? Stick to your plan.
That's what I was thinking, just good to hear it from others. Thanks! Now to discuss with DH.
Another way of looking at the rebalancing issue is to compare
the effect of different rebalancing frequencies on compound
total returns. Let's take a portfolio which is 70% in equities and
30% in fixed income, a 70/30 mix, with six different equity asset
classes including growth and value, large and small, Reits, and
U.S. and international asset classes. For the period of
January, 1975 through December, 2000, monthly rebalancing
produced a compound total return of 3923%, quarterly, 3959%,
yearly, 3971%, and every other year, 4233%. This period was
chosen because it allowed the inclusion of Reits and other
equity asset classes where data wasn't available back to 1973.
Thus, for this 26 year time*frame, more frequent rebalancing
actually reduced long*term returns.
We then reran the original 60/40 portfolio data using Jan. 1972
through Dec. 2000, since that goes as far back as the data for
this asset class mix was available, and adds in the record
speculative markets of 1999 and 2000. Once again, portfolio
returns and volatility differed very little as a function of
rebalancing frequency. In this case, frequent rebalancing
actually increased volatility (standard deviation) slightly for the
29 year period, 10.71% for quarterly rebalancing compared to
10.31% for biyearly rebalancing. ...
Up 5.81% but I'm all in cash for now.
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