Whats the difference between the Total Return (graphed) and (inception) data points?
Total Return (graphed): The rate of return your holding or portfolio has earned during the time period selected incorporating all transactions and the time value of money (when those transactions took place). This figure is an internal rate of return. Mathematically, it is the return that sets the present value of all cash investments to all cash outflows. Cash investments include new purchases plus commissions paid. Cash outflows include proceeds from sales less commissions, as well as the final value of your portfolio. Reinvestments are neither cash investments nor cash outflows, since there is no new money coming from or going to the investor. (Reinvestments are accounted for in returns in that more shares are owned.) Returns from investment periods greater than one year are annualized, but those less than one year are not. Total Return (inception): This return uses the first transaction day in your portfolio as the beginning point and today as the ending point. Like Total Return (g
