Portfolio Turnover Ratio
Computes the turnover ratio of a portfolio or fund: the lesser of total purchases and total sales over the period, divided by average net assets, as a percentage. It's the standard measure of how much a portfolio is traded — a turnover of 100% means that, on average, the whole portfolio was swapped once in the year. High turnover usually signals more transaction costs and taxes. Enter total purchases, total sales and average net assets.
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Portfolio Turnover Ratio
Computes the turnover ratio of a portfolio or fund: the lesser of total purchases and total sales over the period, divided by average net assets, as a percentage. It's the standard measure of how much a portfolio is traded — a turnover of 100% means that, on average, the whole portfolio was swapped once in the year. High turnover usually signals more transaction costs and taxes. Enter total purchases, total sales and average net assets.
How much the portfolio is actually traded
A fund that buys and sells constantly generates costs that silently erode return: brokerage, spread, taxes. Turnover measures exactly that, how much of the portfolio is swapped over a period. A turnover of 100% a year means that, on average, the equivalent of the whole portfolio went through a buy and a sell once.
The calculation takes the lesser of total bought and total sold over the period and divides by average net assets. The lesser of the two is used so the number isn't inflated by large inflows or outflows. Passive funds have very low turnover; trading funds can exceed several hundred percent. Comparing turnover helps you understand a fund's style and built-in cost.
Enter total purchases, total sales and the period's average net assets. The tool returns the turnover as a percentage. It's worth cross-checking this number against the return: high turnover only justifies itself if active management delivers enough return to cover the costs it itself creates.
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Modified Dietz Return
Computes a portfolio's return with the Modified Dietz method, which adjusts the result for deposits and withdrawals made mid-period. Instead of ignoring the cash that came in and out, it weights each flow by the time it stayed invested: R = (ending value − beginning value − flow)/(beginning value + flow·weight). It's an approximation of the time-weighted return widely used by managers before the era of daily calculation. Enter the beginning value, the ending value, the net flow and the flow's weight in the period.
Tracking Error
Computes a portfolio's tracking error: the standard deviation of the differences between the portfolio's returns and the benchmark's, period by period. It measures how much the portfolio diverges from its reference index — an index fund aims for tracking error near zero, while an active fund has a higher one, reflecting its bets. It's the denominator of the information ratio. Enter the lists of portfolio and benchmark returns, in the same order, separated by commas.
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The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.