How does cost basis work?

The cost basis is the amount you, as an investor, paid for an investment.

For the Cost Basis we currently do not account any fees or paid taxes on an investment. We only consider the purchase price (number of securities x Average Purchase Price).

What is Cost Basis Weight?

On the Portfolio page, you can select “Cost Basis Weight” via the “Table Layout” option. This value shows the allocation of your investments based on what you paid for all your securities.

How is Cost Basis Weight Calculated?

For an investment of €210 in Asset A and €90 in Asset B, the cost basis weight per asset would be calculated as follows:

Total Portfolio Cost Basis = 210 + 90 = €300

Cost Basis Weight of Asset A: (210 / 300) * 100% = 70%
Cost Basis Weight of Asset B: (90 / 300) * 100% = 30%

In addition to cost basis weight, PDT also displays your portfolio weight by default. Portfolio weight is calculated based on the current market price instead of the purchase price. This value is compared to the total current value of your portfolio rather than the total cost basis of your portfolio.

By comparing your Cost Basis Weight to your Portfolio Weight, you can clearly see the impact of price and currency changes on the allocation of your portfolio.