Very much hoping you can shed some light on the portfolio returns definition terms used in the daily calculations which I am not quite familiar with
suppose in late 2017 I started a portfolio which I regularly added the stocks transaction details whenever i bought or sold over the years till today. As per my report yesterday the following calculated returns reflected in my portfolio was
Time - Weighted = 18.44% ( YTD ) , 30.40% ( All )
Xirr= 21.63% ( YTD ) , 13.69% ( ALL )
My questions are
- Do these figures take into account all cash inflows/outflows and their corresponding invested periods accordingly?
- Which figure is the one I should be using if i am interested in knowing my Annual Average of Return since late 2017?
- Could pls elaborate what is Time Weighted returns ? and the difference between YTD and All ?
- Also XIRR ?
I have tried looking up and most of the info shows mathematical formulas which doesnt really help me. Would appreciate if you could come up with some simple illustration for 3) and 4) .