I have both an IRA in Vanguard and an old employer's 401k with Fidelity management. I would like to compare the performance between the two accounts over time, in order to determine if I should rollover the 401K into an IRA, possibly at Vanguard.
I have dollar cost averaged with both accounts, meaning that I have had $X per month invested into each account over the last Y years. Attempting to be a prudent investor, I chose to diversify my mutual fund and index fund holdings into numerous (think ~5 diff investments) per account.
I fundamentally believe that Vanguard's lower expense ratios will most likely result in better performance over this time frame, but would like to test my theory and see if I can compare the performance between these two investment accounts. However, it would appear that it may be a monumental task to get the mutual fund & index fund prices for every month over the last Y years, along with the amount of the investment bought, into a spreadsheet and then calculate a rate of return.
So therefore I have the following questions:
- Does anyone have any suggestions to compare the rate of return for account 1 vs account 2 with this dollar cost averaging scenario?
- Has anyone performed such an analysis in the past, and if so, how did you do it and what were the results?
- Any tips for setting up an Excel spreadsheet to do this?
Time is also an important factor for this analysis. I'm willing to put in a good 8 hours or more if necessary to do the analysis, but I don't think it's worth that much more than that. Thoughts?
Edit: Both answers are great, but I've accepted the James answer since he included the spreadsheet with two examples for how to dynamically calculate the information I need to perform an analysis.