Feb 15, 2019
Cory Diary : Using End Date for XIRR for Annual Returns
Have been constantly seeing usage of Annual XIRR with current date. This is quite "misleading" as it will provides explosive growth for positive returns of portfolio in the early part of the year.
For my portfolio for using current date for XIRR YTD will be 57% for 2019. This is quite shocking number considering my absolute YTD returns are just over 5.6%.
To provide a more balance picture, using XIRR End Date 31 Dec 2019, my XIRR YTD will be 5.8% which reflects closely to the absolute YTD returns of 5.6%.