Two ways to measure return
Time-weighted return (TWR)answers: “How did the portfolio strategy perform?” It removes the effect of when you added or withdrew cash, so it is ideal for comparing against a benchmark like the S&P 500.
Money-weighted return (MWR), also called IRR or XIRR, answers: “How did I personally do given when I invested?” Large deposits before a rally will lift MWR; lucky timing shows up here, not in TWR.
When to use each metric
- Use TWR to judge strategy quality and compare to an index.
- Use MWR to understand your real-world outcome including cash-flow timing.
- If TWR beats the benchmark but MWR lags, you may have added money at peaks.
- If both are strong, strategy and timing worked in your favour.
How Calavis calculates them
Calavis builds a daily mark-to-market series from your imported transactions and public price data. TWR chains sub-period returns between external cash flows. MWR solves for the internal rate of return that matches your deposits, withdrawals, and ending value.
Both metrics appear on your performance dashboard alongside drawdown and annual returns. Import your Trade Republic CSV to see them on your own portfolio — start from the CSV import guide.