ROI Clarification

[AssetHound]

Example: an investment is bought and sold multiple times during a three year period and there are periods (months) where the balance is zero shares.

For a report for the three year period, does ROI (own-btw) take into consideration that there are some months where the investment was not owned? And, ROI (end) calculates return based on the first investment date and the end report date but ignores the fact that the investment was not owned for the entire reporting period?

Thanks.

[AssetHound]

Never mind. It dawned on me how to test this and I believe I have my answer.
Thanks.

[Mark]

HI AssetHound,

Glad you found the answer. I'll go ahead and clarify though, in case others might benefit from the answer.

The "ROI Yield (owned between)" field is defined as:

The ROI yield for the period shares were owned between the beginning and ending report dates. If shares were owned for multiple periods the date range spans all ownership periods within the report dates. To view these dates use Date owned, start (between) and Date owned, end (between). If an interpolated price is used for the calculation, an asterisk (*) will be displayed next to the yield.

The "ROI Yield (inception)" field is defined as:

The ROI yield starting on the investment inception date (earliest transaction) through the ending report date. (For the total portfolio figure the earliest inception date of all investments is used for the beginning date.)

In both cases, where there are periods that you didn't own any shares, the performance in those times will be weighted to zero, so they won't impact the ROI. Also, in the "Yield Interpolation Range..." dialog there is an option that controls whether or not an ROI will be displayed in these cases, called:

"Only Report ROI Yields When Item is Owned for Entire Yield Term"

So, if you have that option checked, and you have periods where you didn't own any shares in the yield term, you'll get an "N/A" reported.