A bumpy three years or not - is any positive return a bonus ?

segovia

Prism said:

InvesterJones said:

Global trackers are up about 55% total return since late 2019, or around 43% by price alone.

Is the 13% an annualised figure?

The Vanguard FTSE all world ETF is up by around 30%. Better than 13% but not 55%

I don't know, A J BELL just gives me an overall change in portfolio value, if I dropped 100K into it tomorrow I expect my portfolio value would be significantly lower %  

segovia

eskbanker said:

28% since late 2019 works out at about 7% annual growth, pretty much all of which will have been achieved in the first two years, so a reasonable return rather than spectacular, but outperforming inflation averaging about 4.5% over that timeframe....

What are/were your objectives when choosing what to invest in, and over what sort of timescale?

Edit: conversion to annualised returns will generally be more meaningful - if your 13% figure comes simply from comparing current balance with total paid in then that's not a particularly useful figure if some of that money has only been invested for days or weeks, with other contributions dating back multiple years, so weighting the return will typically give a more realistic picture.

Yes, that's the problem with how the portfolio reports the %. To get a feel for the performance I looked at my initial deposit and investment of 30K and values it on today's price of the fund and that was 28%. Given the turmoil of the past few years, I am reasonably comfortable with the return and the fees are low 0.15% - I expect some folks have fared much worse.

Prism

segovia said:

Prism said:

InvesterJones said:

Global trackers are up about 55% total return since late 2019, or around 43% by price alone.

Is the 13% an annualised figure?

The Vanguard FTSE all world ETF is up by around 30%. Better than 13% but not 55%

The Vanguard FTSE all world ETF on 31 Dec 2019 was 70.56, today it's 85.69, 30K invested in Dec 2019 would be worth £36,432.00 today which is 21% and the charges are more that the 0.15 I am paying at the moment.

You are missing dividends of that calculation. Take almost the same ETF (VWRP) but in accumulation form. It has gone from 65.14 to 84.30 over that timeframe which is 29.4%. 

Anyway, I am sure its what you say and different contribution dates.

segovia

Prism said:

segovia said:

Prism said:

InvesterJones said:

Global trackers are up about 55% total return since late 2019, or around 43% by price alone.

Is the 13% an annualised figure?

The Vanguard FTSE all world ETF is up by around 30%. Better than 13% but not 55%

The Vanguard FTSE all world ETF on 31 Dec 2019 was 70.56, today it's 85.69, 30K invested in Dec 2019 would be worth £36,432.00 today which is 21% and the charges are more that the 0.15 I am paying at the moment.

You are missing dividends of that calculation. Take almost the same ETF (VWRP) but in accumulation form. It has gone from 65.14 to 84.30 over that timeframe which is 29.4%. 

Anyway, I am sure its what you say and different contribution dates.

I have also received dividends on my investment and not included them in my calculations, so I am 28% up + dividends which I think have averaged about 2%

EthicsGradient

If you really want to find the effective return you've been getting, you can use the XIRR function in a spreadsheet - you put the dates and amounts you've contributed, and the current date and worth (as a negative value, since it's like a withdrawal) as a couple of columns, and it can give the effective rate - what you'd have needed as a steady interest rate to get the equivalent.

Of course, equity, bond and cash returns have all varied widely since 2019 in their own ways, so this doesn't necessarily tell you much.

downshifted

EthicsGradient said:

If you really want to find the effective return you've been getting, you can use the XIRR function in a spreadsheet - you put the dates and amounts you've contributed, and the current date and worth (as a negative value, since it's like a withdrawal) as a couple of columns, and it can give the effective rate - what you'd have needed as a steady interest rate to get the equivalent.

Of course, equity, bond and cash returns have all varied widely since 2019 in their own ways, so this doesn't necessarily tell you much.

Unfortunately I don’t understand how to do this, I’m first to admit I’m very poor at maths. Is there a straightforward way to compare the returns I’ve made on my pension fund (with an IFA) S&S ISA (vanguard life strategy) and say, average cash savings account? In words of one syllable for a maths dunce?