How is portfolio performance calculated?

Hello!

I was wondering if someone could clear up a couple of things for me regarding the way in which portfolio performance is calculated.

  1. In the overall portfolio interface, displaying your total portfolio balance and “gains” with a line graph, are dividends included in the “gains” or are they considered contributions to the account? I assume they are considered gains, however I’m unable to verify it due to my account value fluctuating.

  2. When comparing your portfolio against VWRL in the Freetrade app “Insights” interface, are dividends included in performance?

  3. Is cash held within the Freetrade app considered part of my portfolio in the comparison against VWRL? I feel I should really be taking advantage of the interest available to Freetrade Plus members, however I enjoy the benchmark so it’d be a shame if retaining cash would make this feature redundant.

Thanks a lot in advance to anyone who is able to give some insight on the above!

Hi, the initial graph includes everything, dividends but also cash, deposits and withdrawals, making it not particularly useful.

Cash shouldn’t be included in your TWRR so that’s a pretty good measure. Dividends will be included as they’re not an external flow, I’m going off this Wikipedia article

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Today is Tuesday but my TWRR is still calculated based on Saturday data. Also it’s chart changing every day even without any money’s involved between. I just don’t understand why

FX??

I mean that chart significantly changing, I don’t believe fx rates are involved, I have only GBP etf

This is a wisdom tree article specifically, but does a decent job of explaining how ETFs are priced generally.

basically, ETFs prices are adjusted out of hours by market makers to keep it in line with “fair value”. If the ETF has multiple listings or provides exposure to other markets then the fair value will change constantly.

Thats are chart from two nearest dates. This lines are completely different, I just don’t understand why it’s changing values from the past


I think its just a weird change in axis. On the first day of the first graph it was negative, and then on the 25th August it got to about 2.5. Then on the 26th it went near 4 and the negative region dropped out of the 30 days so the whole graph stretches.

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That’s because your starting point on the graph is changing each day I think

Then the green line moves up or down so that it starts at the same place as the grey line on day 1.

Also, The top screen shot only shows positive values, the bottom one shows positive and negative so the Y axis is compressed more

I dont get the sense of this chart if its the case. It make sense right now only for the case when I select Max in the time dropdown.

Can it be changed to always start from 1st day of month?

Anyway, right now it’s 26 and 27 of August and it gives completely different view for my portfolio.