Curious if anyone has insight or opinions on the accuracy of the reported returns on broker platforms like Wealthfront and M1 or how they are calculated. I buy and sell on M1 sometimes multiple times per week just selling and buying things that have gotten well outside of their target percent of my portfolio. I will periodically compare, for example, the 1-year return on my portfolio versus where the S&P is over the last year and I will see that the the S&P is down 5% over the last year but my portfolio is only down 3% according to M1 so yay I'm beating the market (for now).
However, with all my activity and continuing to add funds to this portfolio, I question how accurate the return figure is. I like to imagine that it's a big complicated calculation that takes into account timing of buys and sells that would be nearly impossible for me to calculate on my own. But I have no idea if this is a reasonable assumption. Thoughts?
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