What are money-weighted returns?

Money-weighted returns are affected by every cash flow that goes in and out of your portfolio. Cash flows at Betterment include deposits, withdrawals, dividends, and fees. We focus on the main type of money-weighted returns: internal rate of return (IRR).

When you log into your Betterment account from a web browser and go to the Performance section, in the bottom left corner you’ll see your “Individual rate of return,” a type of money-weighted return. If you’re logged in on the mobile app, tap “See performance,” select one of your investment accounts, and then look for "Total earnings.” Here you will see “Your rate of return” (i.e. your internal rate of return).