Vanguard return calculation

English Reports
1

Hello,
I’m struggling to understand how to set PP to calculate the return in the same way that Vanguard does it online.
Vanguard claim that they use IRR to calculate the return

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But then when i use the IRR in PP i get a different value. 8.72% versus 39.66%

Any help?
Thanks,
J

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2

Your IRR is for the intire portfolio not just a songle ETF.

3

Thanks for you answer.

The Vanguard return belongs to the whole portfolio, as you can see in he middle of the image.

I think what is happening here is that the IRR calculation by PP is always annualised. This is the documentation

Internal Rate of Return (IRR)

The money-weighted rate of return or IRR of a reporting period is the annual interest rate that is necessary to bring the market value of the investment at the beginning of the period (MVB) and all subsequent cash flows to the market value (MVE) at the end of the reporting period

And actually the numbers match when considering that as the period is 4 years.

4

The IRR is always annualised, that’s is not PP specific.

5

Yes. you are right.
I wasn’t particular familiar with the concept.
Thanks for the confirmation.