Hey mustachians
I was recently comparing my IB portfolio-return with VT as benchmark and noticed that there is quite a big gap, which is worrying as I only own VT in there.
CHF has a negative return of 75%! USD isn’t much better either.
Could anyone of you explain me why that is? I’m really clueless. I figured that it could be due to currency fluctuations in USD/CHF but this seems quite extreme. Cash basically negated all returns I had on VT.
Are you negative in chf? IB charges 1.5% for borrowing it on the margin
And what’s the absolute amount? 227.68 P/L makes it sounds like you have a sub 10k account, so fees would eat a good chunk of your returns, but IB perhaps attributed that cost to cash in the report
It would help to know the absolute value of each position. Just like this I would guess you have a relatively small portfolio and the 10CHF monthly fees are eating all your profits.
Thanks a lot guys for your input. Indeed I only have ~ 2.5k invested currently with IB as I’m still evaluating a switch from my current Swiss broker and I was waiting to see if we can still buy VT in 2020.
I only pay 3$ monthly because I’m still under 25. But that would somewhat explain the difference.
It’s quite weird for me to see fees as negative return on cash however.
I really tried but I can’t seem to find any report that would show me why my cash-position had such a big negative return.
The PortfolioAnalyst detailed report shows that a big chunk of the negative returns were right when I opened my account with IB, -2%.
But besides this I can’t figure out what exactly the negative return is coming from. The only thing I can hope to see is that when I add more funds, that the negative return will get smaller, as fees lose overall weight.
Alright I figured it out thanks to your help. The negative returns are indeed the monthly fees, which are represented as negative performance on your base-currency (as far as I can tell).
I used the PortfolioAnalyst to look at my Cash-position and when I set the timespan to one month, the loss on my CHF matches exactly with the fees I’ve paid.
So this problem should go away as soon as I transfer more funds.
Thank you all for your help.
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