I am trying to calculate the weekly turnover of a portfolio consisting of 5 assets .The portfolio rebalances every week an I have calculated the weights and portfolio returns for each week. Is there a formula I can use in excel to calculate the weekly turnover? Or an easy way to calculate in another program?

  • $\begingroup$ I aslo have negative weights in my portfolio which has to be taken into account $\endgroup$
    – OldWoods
    Apr 24 '21 at 15:15

Min (purchases or sales) / portfolio market value

You would typically need quantity of shares held for each position so that you would be able to calculate the market value of purchases and sales.

Weights or market values would not work because they tend to be impacted by the performance of your holdings.

Quantity of shares are used because you will be able to compare current number of shares of asset A vs a week ago.

  • $\begingroup$ Thank you for your answer but how can I quantify my assets? One of my assets is an index and the other 2 are commodities. Should i start by investing a hypothetical amount in the portfolio lets say 1000? $\endgroup$
    – OldWoods
    Apr 25 '21 at 6:17
  • $\begingroup$ Yes, that is a good way. Assume you start with initial equity 1000 USD (or other convenient amount). And do all calculations (dollar amounts, shares) to a high degree of precision. $\endgroup$
    – noob2
    Apr 25 '21 at 18:07
  • $\begingroup$ Thank you very much $\endgroup$
    – OldWoods
    Apr 25 '21 at 18:44
  • $\begingroup$ Index turnover is usually 0 except at times of rebalancing. So depending on what week your trying to measure index turnover, it may be 0%. As with the commodities, I am wondering how are you gaining exposure? Is it also via ETFs? $\endgroup$
    – user28909
    Apr 26 '21 at 12:17

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