XIRR vs TWR

Money-weighted (XIRR) vs time-weighted (TWR) portfolio return — when to use which.

XIRR answers: what annualized return did I earn on the money I actually invested, and when.

TWR answers: how did the strategy / allocation perform regardless of whether you just topped up or withdrew.

Both can be “correct” and still differ. With DCA and large lump sums the gap is often visible. Compare to an index via TWR; personal “how am I doing” via XIRR.