I'm curious whether folks here calculate a time-weighted return for their total portfolio. As differentiated from money (dollar) -weighted return -- e.g. XIRR formula in MS Excel -- the time-weighted return calculation sanitizes for the timing of external money flows -- cash deposits and withdrawals. It is a more involved and time-consuming calculation, but has the benefit of allowing for direct performance comparison with benchmark returns.
If you calculate time-weighted return for your portfolio:
- what do you use it for? why do you bother?
- how often do you calculate it?
- what method do you use (true time-weighted, modified dietz, simple dietz, etc.)?
- do you use MS Excel to do this or some other program / web site?
If you calculate time-weighted return for your portfolio:
- what do you use it for? why do you bother?
- how often do you calculate it?
- what method do you use (true time-weighted, modified dietz, simple dietz, etc.)?
- do you use MS Excel to do this or some other program / web site?