IRR Calculations

Jmansdad

I am using Q 2018, v R3.  As of this morning I am receiving the same IRR calculation for all my ETF's regardless of holding period.  The first two securities are stocks, not ETF's.  Any thoughts? 

Jim_Harman

It appears that they have changed something in the way the Avg Annual Rtn numbers are calculated. Is what you are seeing different from earlier versions of QWin 2018?

For me (just upgraded to QWin 2018 v3) I see different numbers in the Avg Annual Rtn. columns for ETFs that I have held for more than one year but the same number in each column for an ETF that I have held for less than one year.

In QWin 2017 it showed N/A for holdings of less than one year.

Jim_Harman

Actually there appears to be no change to how the IRR (Average Annual Return) is calculated, just how it is presented in the Investing/Portfolio view for securities held less than one year.

Note that for securities with fluctuating prices, the IRR is not a particularly meaningful measure for periods of less than one year. This explained reasonably clearly in the Quicken Help if you search on extrapolation.

Apparently in earlier versions of Quicken, it showed N/A in the Investment/Portfolio Avg Annual Rtn columns for securities held less than one year rather than showing the confusing numbers.

Jmansdad

Thanks, Jim.  I guess I'll just have to wait for these investments to age a bit.