I've been using Vanguard for years but have never understood how to interpret the "performance returns" they list because it doesn't match with the totals for the individual funds I'm invested in.

When I look at the individual funds and add up the capital gains for each, I'm apparently down $1200 overall, but the "performance returns" section tells me I'm up $8600. So what gives? I'm sure I'm being stupid, but any help is greatly appreciated. I wanted to attach a screenshot to make it clearer, but Vanguard doesn't let me on mobile.

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Werewolfdad t1_jeh2wkn wrote on March 31, 2023 at 11:39 PM

Time weighted return

https://intelligent.schwab.com/page/article/understanding-time-weighted-return

Ficklestix OP t1_jeh511l wrote on March 31, 2023 at 11:55 PM

I think this might be it! I'm gonna do some more research into it. Thanks!

Vikkunen t1_jeh2wtl wrote on March 31, 2023 at 11:39 PM

I imagine it's probably looking at returns over a specific period (probably the past 12mo), not necessarily since you opened the account.

Ficklestix OP t1_jeh5bbn wrote on March 31, 2023 at 11:57 PM

It actually clearly states the period that it is calculating, and it's over the lifetime of my account. I think it may be the time-weighted return method that someone else mentioned.