Almost three years ago I wrote about the experience of my friend who dollar cost average $1000 per month into the STI ETF (Exchange traded fund) , 2 months before the market top and how his returns have been. You can read it here. I revisit the article a year ago, you can read that here.

The last time round, I use XIRR to calculate the rate of return per year of the cash inflows and the cash outflows received over time to be 4.95%.

Since a year ago, markets have not moved any where perhaps since 2010 for 5 years. We are still below the highest point reached.

Assuming the cost is 0.25% for commission if you use Standard Chartered Online Trading no minimum commission, the number of units collected in this 7 years 10 months have been 31981 units. The average cost of your units is $2.95.

The current price of STI ETF is $3.41. How is the return?

I provided a snapshot of my XIRR computation. The XIRR or rate of return per year if net present value is zero is __5.55%__

The XIRR is higher than last year and somehow seem to get better with time. This is perhaps highly attributable to having more units and more dividends collected.

You can use this 5.55% to compare against your individual stock picks compounded annual growth rate and insurance policies IRR.

This was a challenging time, and past performance might vary versus what you get in the future. Let me know if my data looks highly suspect. I may not be always correct.

Ray says

Hi is [G] supposed to be the same as [F]?

Kyith says

Sorry for the confusion Ray, yes it is. the sheet was suppose to take care of some growth over the years. in this case there is no growth, so the 2 column are the same. that stands for the inflow, H is the outflow.

Raymond Chiam says

Thanks for the clarification.

Does the XIRR take into consideration the capital gain / loss?

Kyith says

Hi raymond,

Yes it does. At the end I will Input the value of units held x current share price as an outflow. So if the share price is lower than average share price it is a loss. U will be able to see the irr in that scenario.

Raymond Chiam says

wow, even with the deep corrections, the XIRR is still 5+%? incredible!

Kyith says

hi Raymond, think of it this way, some of the early units 7 years ago was purchase at the lowest prices. this is a DCA. If its a lump sum you will think this is a bland product

Kyith says

Hi Raymond, this is the XIRR of the 1st month $1k at price $3.37 and nothing else added just collect dividend. current price $3.41. XIRR 3%

YH says

It’s been a year. Would you be able to share the ninth year data? The market has lost value over the past year and I’m interested to know what is left if he is to exit now.

Kyith says

hi YH i will do up the data

Foolish Chameleon says

Kyith,

whats the formula you used for calculating the XIRR.

i am vested in the STI ETF as well, and i would like to have a go at seeing what the XIRR is.

thanks.