Hi everybody! Recently I’ve discovered the Portfolio Performance application which I think has a really good quality so I’m really interested in using it for my portfolio tracking, apart from the Excel sheets I’m currently using.
I’ve read the online documentation and watched some Youtube tutorials but I have some doubts due to its complexity. I need the tool to track my Bogleheads portfolio which consists of index mutual funds (non ETFs), and what I’m most interested in is in obtaining the correct TWR and MWR performance.
I have setup a new portfolio and added the mutual funds I work with. I have added every transaction I made from 01/01/2025 and I made a corresponding deposit for each buy.
- Is it correct that I have to make a deposit for each buy in order the portfolio performance is calculated correctly? For instance, If I bought a fund on 07/01, I need to create a deposit for the same quantity on the exact same date (transactions are created at 12AM by default, can the deposit and buy be created with the same time or should the deposit happen before?). First I tried to create a unique deposit on 01/01 for the total amount of the buys but I have noticed that then the TWR/MWR would be different.
- I have made some funds transfer (that is possible with mutual funds, but not with ETFs). For that, I created a sell transaction for the source fund and a buy transaction for the destination fund, but I didn’t create a deposit or removal as the money remained in the same account (although there were a few days that the money was not invested in any security, until the transfer reached the destination fund). Is that the correct procedure to track the real performance of the portfolio, or should I created a removal when the source fund was selled and a deposit when the destination fund was buyed?
- When should I create a removal transaction? I suppose that would happen if I sell some securities and I want to take the cash out of the portfolio (not buying another fund). I don’t get how the removal affects the performance metrics comparing to the sell orders and what is really the purpose of having deposits and removals apart from buy and sell transactions.
- As I started my portfolio some years ago and I didn’t want to create all the transactions I made before 2025, I created a buy transaction on 01/01 for each position I have in every fund, so I can track the performance from 2025 on. Is that correct? I have noticed that there is Delivery Inbound/Outbound transaction type that doesn´t affect deposits, but I don’t understand well when should I use them and how they impact the performance metrics comparing to the deposit+buy method I have used.
Sorry for having so many questions, and I hope that you can guide me on this matter.
Regards.