Why does the YTD Annual Return show an inaccurate percentage?

craig.

The YTD annual returns for my stocks & mutual funds show outrageous returns, in excess of 4 times the actual percentage difference from the first of the year.

q_lurker

craig said:

If it is supposed to be YTD, why is Quicken extrapolating anything?

It is YTD, annualized.  To get an annualized value from a shorter (less than a year) period, the calculation effectively extrapolates.   

Jim_Harman

In other words in a YTD report it is assuming that the performance so far this year will continue for the rest of the year. That is a good assumption for CD but probably not for a stock fund .

For a non annualized performance number, look at the ROI column in the investing performance views.

NotACPA

Try setting the end of the YTD period to be 12/31.  What you're getting is an extrapolation of part year returns.

craig.

I'm just using the Avg. Annual Return (%) YTD from Quicken's Customize Current View, letting quicken set and perform whatever calculations needed.  If it is supposed to be YTD, why is Quicken extrapolating anything?

q_lurker

craig said:

If it is supposed to be YTD, why is Quicken extrapolating anything?

It is YTD, annualized.  To get an annualized value from a shorter (less than a year) period, the calculation effectively extrapolates.   

Jim_Harman

In other words in a YTD report it is assuming that the performance so far this year will continue for the rest of the year. That is a good assumption for CD but probably not for a stock fund .

For a non annualized performance number, look at the ROI column in the investing performance views.