Thank you for the excellent explanation. I use wealthfront and JP morgan for my investment needs. I am trying to compare the performances of both these portfolios but I have noticed that while Wealthfront gives both the time weighted and money weighted returns, JP morgan appears to only provide money-weighted return or Internal rate of return. Is there a way that i can find out the TWR of my JP morgan portfolio? Thanks
Thank you for making the video. Some definitions flew over my head as I am novice, but would you agree that if I am looking for how much money I have personally made over the years, then I should be looking at Money Weighted Return of my investments, however, if I was comparing two index funds, I should look at their Time weighted returns. Correct? My bank account shows both, and I can't figure out if I made smart investments and if I am getting the return I targeted.
How about showing a good ol fashioned “winnings “ number (or percentage)? (Total deposits minus total withdrawals) vs the current value of the account. So I can tell how much I “put in “ and how much I “made”. Very simple math, why is not available in Wealthfront????
As a number OK, but as a % it does not work. Imagine you withdraw all your initial investment except for $1, and that day you choose to calculate your "winnings" %, it will be equal to your winnings / $1, and the percentage will be huge and not accurately represent your performance.
on wealthfront it doesn't appear i am getting an accurate percentage for either MWR or TWR. I am taking the current total value of the position and the amount deposited and subracting the total dividends earned for all time in fund.. and then caluculating a percentage difference between those two number.. I am getting about 5% gain for all time. but the MWR and TWR that wealthfront displays is 13.4% TWR and 9.9% MWR. both of these are vastly higher than the number i am getting. What am i missing or getting wrong?
This is the first time in years I heard the presentation that clearly shows various methods of calculating investment preformance. Thank you so much!!
Thanks for watching!
Respect on being able to pyramid your hands for so long
lol
Best explanation I’ve seen. Thanks 👍🏾
Glad it was helpful!
Thanks for this...I was struggling to understand these...now I have some idea at least 😂
Thanks!
Continue doing this awesome work thanks a lot
You made it so easy to understand while also going into detail. Thank u❤
Thanks!
Thank you for the excellent explanation. I use wealthfront and JP morgan for my investment needs. I am trying to compare the performances of both these portfolios but I have noticed that while Wealthfront gives both the time weighted and money weighted returns, JP morgan appears to only provide money-weighted return or Internal rate of return. Is there a way that i can find out the TWR of my JP morgan portfolio? Thanks
Thank you- excellent explanation
Thank you for making the video. Some definitions flew over my head as I am novice, but would you agree that if I am looking for how much money I have personally made over the years, then I should be looking at Money Weighted Return of my investments, however, if I was comparing two index funds, I should look at their Time weighted returns. Correct? My bank account shows both, and I can't figure out if I made smart investments and if I am getting the return I targeted.
Yeah that’s a great way to look at it!
@@wealthfrontvideos Thank you for confirming
How about showing a good ol fashioned “winnings “ number (or percentage)? (Total deposits minus total withdrawals) vs the current value of the account. So I can tell how much I “put in “ and how much I “made”. Very simple math, why is not available in Wealthfront????
As a number OK, but as a % it does not work. Imagine you withdraw all your initial investment except for $1, and that day you choose to calculate your "winnings" %, it will be equal to your winnings / $1, and the percentage will be huge and not accurately represent your performance.
on wealthfront it doesn't appear i am getting an accurate percentage for either MWR or TWR. I am taking the current total value of the position and the amount deposited and subracting the total dividends earned for all time in fund.. and then caluculating a percentage difference between those two number.. I am getting about 5% gain for all time. but the MWR and TWR that wealthfront displays is 13.4% TWR and 9.9% MWR. both of these are vastly higher than the number i am getting. What am i missing or getting wrong?
Hi you're calculating simple return, whereas MWR and TWR are very different. I'd encourage you to email our team for more context.
When i calculate in XL, it shown that IRR=-12.92%
It's a complicated calc!
I also got -12.92% =IRR({-1000,-2000,2500}) What am I doing wrong? Also how didyou calculate the TWR at the end?
@@Mikeint0shVideos They did MWR wrong, that's why. -12.92% is the right answer. TWR=[(2/1)*(1.25/2)]^(1/2)-1
you talk to fucking fast bro