Graphs: Portfolio/Investment(s) Overlay

[drkaveh]

Dear Mark,
I compare one of my portfolios (consisting of dvidend paying stocks) against, Nasdaq Composite (using Yahoo Historical Prices for ^IXIC), and
S&P 500 (using Yahoo Historical Prices for ^GSPC).
When I choose the "Value" option of above graph, the indices seem to have clearly outperformed my portfolio. On the other hand if I choose the "Price+distribution" option my portfolio seems to have markedly outperformed the indices!! What am I doing wrong? Which option would give the graph that is closer to the true picture?
Thanks!
Kaveh

[Mark]

Hi Kaveh,

From the online help on these graph types:

The hypothetical investment value and hypothetical portfolio price + distribution calculations are done on a daily basis at the closing price each day. Relative differences between these two graph types can occur when transactions are recorded at mid-day prices that differ from the closing price.

You might check your transactions, and see if you've had some that were traded at a price significantly different than the closing price.

[drkaveh]

Thanks Mark,
Does dividends effect the two types of graphs (value vs price+distr) differently? I am comparing my portfolio against two indices (that of course do not pay dividends).
Thanks!
Kaveh

[Mark]

Hi Kaveh,

Both graph types include the effects of distributions. It is most likely one or more transactions occurred at a significantly different price than the closing price.