The Portfolio Expected Return indicates what annual rate of return you can expect from your portfolio, for the level of risk taken*.
It is calculated as the weighted average of the expected returns of the individual investments, based on your preferred calculation method.
You can find your Portfolio Expected Return value on your dashboard or the Diversiview analysis page, under the ‘Performance & Benchmark‘ section. The table shows two values:
- The left value indicates the portfolio expected return of the current asset allocation.
- The right value indicates the portfolio expected return of the optimal asset allocation.
Diversiview uses a 3 year horizon to get a near future estimate. Longer horizons increase the uncertainty of the expected performance.
*For the purpose of portfolio expected return calculations, Diversiview uses the index that you select from your profile settings. To learn how to select your preferred market benchmark, click here.
For more help, visit Diversiview’s YouTube channel and check out our explanatory videos.
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