Monthly Portfolio Update 📈 Jan 2021
Feb 1, 2021 18:27 · 316 words · 2 minute read
To give a bit more detail on my portfolio I thought I could share a monthly update. It should also help me to track the history and contemplate about my portfolio.
What is the monthly portfolio update showing?
I created a view in my tracking tool which is split up into 5 columns and will be filtered on the last month:
- Entire Portfolio is the 1st column, showing the summary of all other 4 columns.
- ETFs is the 2nd column, basically my World Portfolio (70% World, 30% Emerging Markets).
- Stocks as the 3rd column, my only stock I’m owning.
- Cryptocurrencies as the 4th column, a rather small and old position if you look at the Invested Capital.
- Cash as the 5th column, only there to give the complete picture.
Monthly Portfolio Update
I’ll not go into too much detail this time. Probably next month there is more to say when comparing two months.
| Measure | Entire Portfolio | ETFs | Stocks | Cryptos | Cash |
|---|---|---|---|---|---|
| IRR | 55.22% | 20.70% | 747.18% | 184 911.13% | 0.00% |
| TTWROR | 3.71% | 1.62% | 21.95% | 85.58% | 0.00% |
Performance Measures
Portfolio Performance is usually tracking two measures, the internal rate of return (IRR) and the true time-weighted rate of return (TTWROR). The difference of them is well elaborated in a how-to within the portfolio performance community (in German). An English description can be found here:
The IRR, also commonly referred to as the dollar weighted return, is the measurement of a portfolio’s actual performance between two dates, including the effects from all cash inflows and outflows. […] The IRR does provide a meaningful measurement of the absolute growth of a portfolio.
The TWR captures the true investment performance by eliminating all the effects of capital additions and withdrawals from the portfolio. This makes the TWR a more meaningful measurement of performance when used to analyze the underlying performance of the portfolio’s assets or comparing your investment manager performance to alternative investments.