Would like to ask how come the TWR returns of the benchmark index eg. SPY / vwrd year to date returns is less than 1% and 4% repectively but actual price has already increased more than 5% for both index. Is there an error or did i misunderstand how it is measured?
Hi there,
Can you tell me the page that you are seeing this?
Thanks,
Evan
on the portfolio page under report tab.
hi evan, did u manage to understand why the figures didnt tally with the actual snp500 returns?
Hi there,
Sorry, a little overwhelmed with stuff. Just spent some time looking into it.
It is because I included FX changes. To test it out, you can try switching your base currency to USD then you would see that the returns would match what you expect. But if you include the FX rates of SGD/USD at the start of the year till now, it would be 1%+
As for why I would include FX changes is because if you had changed SGD for USD to buy SPY at the start of the year and if you sell SPY now and change it USD back to SGD, then your “gains” would be affected by FX too. Of course, that depends on your base currency which is why if you set it to USD then FX gains/losses will not be included.
Cheers,
Evan
Oh so the benchmark index also accounts for the currency fluctuations?
No worries, i am just curious why the benchmark index differs from the actual index movement. Thank you for taking the time to look into it. Appreciate the amount of work u did to keep this platform running. Cheers!
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