LESSON 10.10 · ADVANCED

Why two apps show different returns for the same portfolio

Same holdings, different method, different answer. Neither is broken.

MEASURING PERFORMANCE HONESTLY4 MIN READ

Put the same portfolio into two apps and you'll often see two different returns. Usually neither is broken; they're using a different methodology. One may show a time-weighted return and the other a money-weighted return. One may include dividends and realised gains while another shows price change only. One may match sales against your earliest purchases while another uses average cost. And each has its own as-of date: when its prices and exchange rates were last updated.

This app's Return is current value minus the remaining cost of what you hold, using average cost. It leaves out dividends and profits on shares you've sold, which appear separately, and it converts other currencies at daily exchange rates, with prices refreshed through the trading day. Its Annualised Growth is a CAGR measured from your first purchase. A broker's statement will often differ on at least one of those points, so before deciding which number is right, check what each is measuring. They're often both right about different things.

Same holdingsDifferent method, different as-of timeA different answer — often both right

Check the method before you check the number.

See how your Return is calculated →

Educational content only. It is not personal financial advice.