Calculate Market Return: Five Easy Steps
Jae Jun | Jan 22, 2013 04:45PM ET
Calculating market return and performance is important. You don’t want to do it on a daily basis, but it is important to measure how you are doing, keep track of whether you are achieving your goals, as well as keeping records for tax and various other reasons.
To keep it simple, I calculate my returns against the S&P 500 and Russell 2000.
Russell Investments has a calculator that makes it really easy to get the performance returns over any custom time period. Standard and Poors does a horrible job of calculating market returns. In fact, there is no way to calculate the total return with the data from the S&P 500.
But there is a workaround, and in response to the questions I received from my 2012 performance review about how I calculated market returns, follow these instructions to start calculating the market return for your own portfolio.
Calculate Market Returns Over Custom Period
Here is a link to the Russell Investments page for the google docs version that another person created.
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