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.
I then dug through all reports and figured out that the big negative return was coming from my cash positions (USD & CHF).
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.
I greatly appreciate your help