BacktestFolio · Glossary

MWRR

In plain language

Measures the effective return on your invested money, taking into account when each pound or euro was contributed. If you invested more just before a crash, the MWRR will be worse than the TWRR for the same portfolio.

Technical definition

Money-Weighted Rate of Return: the internal rate of return (IRR) that sets the net present value of cash flows to zero; sensitive to the amount and timing of contributions and withdrawals (DCA, withdrawals).