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What is the Return of my Portfolio?

Evidence-Based Investing (EBI) and “passive” investing refer to the same investment approach.

A portfolio return is the monetary return (gain or loss) experienced by the holder of a portfolio.

Your quarterly statement should present clear, net-of-fee performance results for various short- and long-term time periods, with an accompanying custom benchmark that is suitable for comparing your specific portfolio strategy against. Unfortunately, this is often not the case. Many advisors make it difficult to find performance data, or they limit performance data to short-term results only.

At Portfolio Solutions®, we pride ourselves on our transparent, informative reporting. In addition to providing a wealth of data and market commentary, we provide clear results for long- and short-term time periods and a custom benchmark suitable for comparing your specific portfolio strategy against.

Custom benchmarks are important for accurately assessing your portfolio’s performance – your portfolio has many asset classes in a proportion customized to you, so we create benchmarks with asset allocations that match your unique portfolio. For example, comparing your portfolio to the S&P 500 only makes sense if your portfolio is 100% US Large Cap stocks – which would be a very unusual portfolio. We create benchmarks based on your asset allocation, so if your portfolio is 10% large cap stocks and 5% small cap stocks, your custom benchmark would be weighted accordingly, with 10% made up of the S&P 500 and 5% of the Russell 2000.

At Portfolio Solutions®, we provide comprehensive statements so that our clients can fully understand their portfolios and be confident in their long-term financial goals.