At first I thought there was a problem with how QM is adding reinvested dividends to the Cost Basis, but after finding this thread I realize QM is doing it correctly:
https://getsatisfaction.com/quickencommunity/topics/when-adding-dividend-reinvestment-shares-it-adds... However, at least to my way of thinking, the way QM is calculating Total Gain/Loss is wrong, because it leads to misleading/incorrect results. I assume this is a general problem and not specific to QM and Vanguard. I have attached a screen shot to show what I mean.
As you can see (after opening the screenshot in a new window), I purchased $25,000 of a Vanguard fund on 12/5/16. I then received 3 dividend payments that were reinvested in additional shares on 12/23. This brought the cost basis up to $26,225.05. However, the share value of the fund has gone down so it is only worth a total of $25,665.47. In tracking "Total Gain/Loss" I would consider this a $665.47 gain on my original investment. The way QM is calculating it leads to a -$559.58 loss. Unless I'm mistaken in my reasoning, I want to know my gain/loss from my original investment because I consider dividends part of the return on my investments. If I did not reinvest the dividends the loss on the investment would -552.11, but all of the dividends ($1217.57) would be added somewhere as a gain. This would give me a net gain of $665.47 on my investment. I believe QM should give the same results whether I reinvest dividends or not.
Am I wrong?
