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Net Appreciation vs Performance FAQ
Net Appreciation vs Performance FAQ

Why is my account's performance negative but the net appreciation is positive (or vice versa)?

Joseph Barth avatar
Written by Joseph Barth
Updated over a week ago

Accounts/households with a positive net appreciation but a negative performance return (and vice versa) is counter intuitive but can be surprisingly common.
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The root of the confusion comes from performance return being the result of a time weighted calculation, while net appreciation is a simple difference.
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This occurs most frequently when there are large deposits/withdrawals in an account, or in a household when accounts open at different times.

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