The rate of return on your dashboard is a money-weighted rate of return, calculated net of your fees. For account histories greater than a year, the return is annualized. For account histories less than a year, the return is not annualized.
A money-weighted return is the best reflection of your overall performance, as it takes into account the money deposited to and withdrawn from your portfolio. This makes it a more personalized rate of return than other methods. It is also known as the internal rate of return (IRR). money-weighted returns are the industry standard for investment account performance reporting.
You can read more about the rates of return in our blog post, Part 1: The rate of return on my investment doesn’t add up. Help!. You can also read more about the money-weighted rate of return in the article, How is my rate of return calculated?
If you have any questions, please contact your regional representative or [email protected].