The Portfolio Expected Return indicates what annual rate of return you can expect over a 3-year horizon*.
It is calculated as the weighted average of the expected returns of the individual investments. For each individual investment, the expected return is the geometric (or compound) average of that investment’s daily returns for the past 3 years, annualised.
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 more help, visit Diversiview’s YouTube channel and check out our explanatory videos.