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!
Best explanation I’ve seen. Thanks 👍🏾
Glad it was helpful!
Respect on being able to pyramid your hands for so long
lol
Continue doing this awesome work thanks a lot
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.
Yeah that’s a great way to look at it!
@@wealthfrontvideos Thank you for confirming
Thanks for this...I was struggling to understand these...now I have some idea at least 😂
Thanks!
Thank you- excellent explanation
You made it so easy to understand while also going into detail. Thank u❤
Thanks!
From perplexity❤
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
Keshawn Stream
you talk to fucking fast bro