Return and Dividend Calculation
F
FarshadJanuary 08, 25 | Posted in general
So is the Dividends and Return in my portfolio , is it average or median of all the stocks and ETF's in it, how is it calculated
2 comments
1 reply
Sort by
Oldest
F
FarshadJanuary 10, 25
why am I not getting any response from the support team
DS
Dmitry ShevchenkoJanuary 11, 25
Community discussions are not an official support channel. For assistance from our support team, please email support@portfolioslab.com. Most inquiries are answered within a few hours.
DS
Dmitry ShevchenkoJanuary 11, 25
At PortfoliosLab, neither the dividends nor the return is a simple or median average of the individual holdings. Instead, we treat the portfolio like its own “fund” with a daily net asset value (NAV). Here’s a simplified outline of how it works:
- Calculate a Daily NAV – Each day, we sum up the market value of all portfolio holdings and factor in any dividends or distributions.
- Ignore External Cash Flows – By neutralizing contributions or withdrawals, the daily change in NAV purely reflects gains or losses plus dividends/distributions.
- Compute Daily Return – We compare today’s NAV to yesterday’s NAV to get the daily return. Over time, we compound these daily returns to measure overall performance.
This approach lets us show your portfolio’s true investment performance without simply averaging or taking medians of individual stock and ETF returns.
Category
General
Views
195