How do you calculate performance?

SigFig Team -

Great question. In general, the performance of your portfolio should reflect the time-weighted return on your assets.

Our Portfolio Tracker will pull your transactions and positions history from your brokerage account. After this, we use the current market price of each security to determine your total account value at any given time.

From there, we calculate your return by taking the total account value of today and compare it to the previous day. These returns are calculated net of fees, interest, dividends, and miscellaneous adjustments. Investment returns automatically adjust for deposits and withdrawals to represent true performance of the portfolio. 

Finally, daily returns are then chained to reflect your cumulative performance over a given period.

For example:

If your portfolio returned 2% on Day 1, 3% on Day 2 and 5% on Day 3. Your cumulative returns are calculated as ((1.02*1.03*1.05) - 1) = 10.31%.

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