Benchmarking

Hi, i’ve just started a new portfolio and was wondering why most of my ETFs seem to be underperforming relative to similar benchmarks. So i did a direct comparison and noticed this (see pic). Is that because my holdings have been grown in multiple parcels and the dollar weighted return is penalising me? I thought the benchmark return account for that.

I am noticing this exact same thing and can’t make sense out of it. Even when I make a single purchase of an ETF, it’s returns immediately diverge from my own.

Does anybody have any ideas?

Welcome to the Community @tcbrennan.

You’re correct re dollar weighting, the benchmark assumes a lump sum investment at the start of the period.

1 Like

Hi Daniel,

Welcome to the Community.

The benchmark uses the closing price of the previous day as the starting point. If your buy price doesn’t match this exactly the benchmark will show a better return.

I hope this helps. Please feel free to reach out to our support team for any account-specific questions.

Thanks for clarifying