Hi, the portfolio performance calculations account for the historical composition of a portfolio, which could be affected by its rebalance settings for static portfolios or actual holdings for transactional portfolios. With the [portfolio performance tool](https://portfolioslab.com/tools/portfolio-performance), you can easily visualize a portfolio's historical composition to see how it has changed over time. Here's what it looks like, for example:

 <img height="377" width="567" src="https://portfolioslab.com/static/user-content/1/smlyy9i4vsl0x901wulznglj.png" />

I will explain the problem to you,

even when the analysis analyzes the previous composition of the portfolio for me, only the allocation percentages change, but the names of the assets do not change throughout the periods, and this is incomprehensible to me, because perhaps he should have diversified the assets over the years.

It depends on the portfolio type. What you're describing can be implemented with transactional portfolios. For instance, in the chart, [MSFT](https://portfolioslab.com/symbol/MSFT) was swapped for [NVDA](https://portfolioslab.com/symbol/NVDA) at some point, and the performance calculations reflect that. 
 <img height="400" width="527" src="https://portfolioslab.com/static/user-content/1/fysvd67732ilav5qlaalvzkn.png" />

However, not all portfolios are transactional. Static portfolios have many valid use cases, from simple backtesting to "lazy" portfolios that only get rebalanced periodically without changing the holdings.

When I see the past performance of a particular portfolio, does it mean the performance of the current composition, or do I get the performance by weighting the portfolio against all its old compositions?

It is very important to learn about the success of the portfolio.

Does Portfolio Performance Consider Historical Composition?

Hi! Could you add an option to view performance reports in various currencies, such as EUR?

Performance reports in different currencies

Hi Ed, in all performance calculations, we take into account the dividends but do not implement any reinvestment schemes. So the total performance is the combination of price movements + any distributions received. This means while dividends are considered in the performance figure, they are not reinvested back into the investment.

It would be pretty powerful to include reinvested dividend option and account for inflation! I like the site totalrealreturns.com which does both of these and allows for comparisons. But the combination of combining assets into a portfolio and then adding reinvest and inflation . . . wow. (I requested such from them, but would be better implemented here).

Then if we could add tax consequences we'd see true spending power . . . 

I agree with adding dividend reinvesting as an option be extremely useful tool and distinguish it from other investments tool. I am only aware of Morning star which does this with 10 year growth charts

Do performance calculations include reinvestment of all distributions?

Dividend reinvestment

Their price numbers look correct, but it appears Google Finance is not accounting for dividends in its performance calculations. That results in a systematic undervaluation of assets that pay dividends, such as many ETFs and stocks. Dividends can make a substantial difference in the total return of an investment over time. This is why many investors usually prefer to look at total return figures that include both price appreciation and dividends

In a case like this, the performance numbers reported by Google Finance would be less reflective of the actual total returns you would experience as an investor. Depending on your investment strategy and goals, this could be a significant issue. If you rely solely on a platform that doesn't account for dividends, you could be underestimating your actual returns, which might lead to suboptimal investment decisions.

Google Finance shows that VTI gained 16.00% over the past year, but on PortfoliosLab, the value is 22.37%. Why is the difference so significant? I'd expect it to be relatively close, allowing for some margin of error. However, the current difference shows a gap of more than six percent.

Performance values difference with Google Finance

We're excited to announce two powerful new sections now live on PortfoliosLab:

**Valuation Analysis**

Gain deeper insights into how stocks are priced compared to their peers in the same industry. Now featuring essential valuation metrics:

* P/E Ratio: Evaluate stock prices relative to company earnings.
* PEG Ratio: Balance stock valuation against expected growth.
* P/S Ratio: Understand valuations relative to company sales.
* P/B Ratio: Assess how stocks are priced in relation to their book value.

Each valuation metric compares a company directly to its industry peers, clearly marking zones indicating if the stock is undervalued, fairly valued, or overvalued relative to the industry average.


 <img height="371" width="491" src="https://portfolioslab.com/static/user-content/1/erorqz6bi416b1wxumzz6c8g.png" />

**Profitability Insights**

Explore key profitability metrics to better understand company performance:

* Gross Margin: Measure how efficiently a company generates revenue from its direct costs.
* Operating Margin: Evaluate operating efficiency and how well a company manages operating costs.
* Net Margin: Gauge overall profitability after all expenses.

Profitability metrics are benchmarked against industry peers, clearly identifying whether a company is underperforming, performing on par, or overperforming in terms of profitability.


 <img height="891" width="538" src="https://portfolioslab.com/static/user-content/1/s67zbzxwghe69m2sdq16bz7r.png" />



The new features are live for all equity stocks on PortfoliosLab and are available to all users.

New: Valuation & Profitability Insights

We’ve added support for **inflation-adjusted performance and drawdown calculations**, giving you a clearer picture of how your portfolio performs in real economic terms.

Nominal returns alone don't reflect how much value your portfolio is truly gaining (or losing) over time. Inflation erodes purchasing power, so what looks like positive performance on paper may not translate to real-world growth.

With this update, you can now adjust performance metrics to account for inflation and view drawdowns in *real terms*, showing actual value loss and recovery.

A drawdown typically tracks how far a portfolio falls from a peak and how long it takes to recover. However, in most cases, a *true* recovery isn’t just returning to the previous nominal high, it means the portfolio’s value must grow enough to outpace inflation over the entire drawdown period.

By adjusting for inflation, you get a more accurate view of:

* How deep the loss really was
* How long it *truly* took to recover
* Whether your capital actually regained its real-world value

This makes the drawdown metric significantly more informative, especially for long-term investors. You can explore these updates directly in the following tools: [Portfolio Performance Calculator](https://portfolioslab.com/tools/portfolio-performance), and [Drawdown Analysis Tool](https://portfolioslab.com/tools/drawdowns).

Just check the **“Adjust for inflation”** option on the settings panel:

<img height="144" width="756" src="https://portfolioslab.com/static/user-content/1/d5bk5hy48vp1r4v81iogf5lx.png" />


We use CPI data from FRED to adjust for inflation, helping you better understand your portfolio’s real-world performance.

New: Inflation-Adjusted Performance & Drawdowns

We're wrapping up 2024 with another platform update packed with exciting new features and enhancements!

**Threshold-Based Portfolio Rebalancing**

A new threshold-based rebalancing method is now available! In addition to scheduled rebalancing, you can now configure rebalancing based on a threshold value. Rebalancing is triggered when an asset's weight in the portfolio exceeds or falls below the set threshold relative to its target allocation.

<img height="361" width="426" src="https://portfolioslab.com/static/user-content/1/m3kzf4tnyc3l9spg6ndhul6j.png" />

For example, if an asset is targeted at 20% of the portfolio with a 5% threshold, rebalancing would occur if its allocation drops below 15% or rises above 25%. Unlike calendar-based rebalancing, this method responds dynamically to market movements and asset performance, offering a more adaptive approach to portfolio management.

You can now save your portfolio rebalancing settings. Previously, all portfolios defaulted to rebalancing once every three months upon saving. We'll also be adjusting existing lazy portfolios to incorporate more relevant rebalancing settings.

**Enhanced Portfolio Screening**

The portfolio screener now includes a new feature to filter user portfolios by specific tickers. It’s easier than ever to explore insights from the vast user portfolio base on PortfoliosLab, focusing on portfolios that include particular stocks or funds.

<img height="395" width="557" src="https://portfolioslab.com/static/user-content/1/v3fw1k2kvggsjjkw0vw3wg97.png" />

When viewing individual tickers, such as stocks or ETFs, you can quickly see public user portfolios containing that ticker. This provides instant access to top-performing portfolios featuring the selected asset. Look for this section at the bottom of the page.

<img height="170" width="559" src="https://portfolioslab.com/static/user-content/1/lmnvpni3dr15yvn4w1ddwa5m.png" />

**Portfolio Returns Table Update**

We've updated the portfolio returns table to include color-coded returns for quicker comparisons among portfolio constituents.

<img height="336" width="667" src="https://portfolioslab.com/static/user-content/1/yd6g248qembb80w0cd9kjmj3.png" />

**Other Improvements**

Minor UI enhancements have been made to improve site clarity and responsiveness.

Happy holiday season! We look forward to bringing you even more updates in the coming year 🎉

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