Vanguard Personal Rate of Return figure

Evening forum.

I don't understand Vanguard's Personal Rate of Return figure; how does that translate to an annual  rate of return figure please - is there an equation? 

Comments

  • masonic
    masonic Posts: 26,410 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    It should be based on the Internal Rate of Return: https://www.investopedia.com/terms/i/irr.asp
    Taking into account your contributions over time and the effect of your market timing.
    As opposed to a unitised return, which is simply the weighted return of the underlying assets of your portfolio for the time you held them.
  • How do I calculate the unitised return please? Is there an equation.  Please forgive my ignorance. 
    • The internal rate of return (IRR) is the annual rate of growth that an investment is expected to generate.
    My All Cap currently has an IRR of 31%.

    I can expect an annual return of 31%...surely not, what am I missing?
  • I have the same question.  This has baffled me. I’ve even contacted Vanguard and they’ve only referred me to the vague explanation on their website which does nothing to help me understand and be able to perform the calculation myself. 
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