ES3 is used for comparing portfolio performance against the STI.
I am wondering how the performance of ES3 is calculated in SC.
Over the lifetime of a portfolio we make buys and sells and generally, if things are going well, we increase the size of the portfolio with time.
is there any allowance for this in SC?
or is the price of ST3 taken at the birth of the portfolio, which would mean my portfolio performance is based upon dumping the total current value of my portfolio into ES3 at the beginning of time?
Logically (it seems to me) that the sales and purchases I make in the portfolio should be reflected in the ES3 performance for me as if I had been buying or selling the index at the same time as making trades in the portfolio.
And if so, the buy/sell price should be taken into account as well as the trading costs.