Understanding performance information

 

Finding performance data

The Portfolio tab and the Holdings tab in M1 both show you the performance of your investments. Each page has a different goal in mind so M1 uses two different calculations to show the return. 

 
Portfolio tab: Market gain, net cash flow, & money weighted return

Performance_1.png

Market Gain: 

The gain includes all market capital gains and dividends earned. You can view this historical performance information over a chosen time period: 

  • Day  
  • Week  
  • Month  
  • Quarter  
  • Year  
  • All-time 

Net cash flow 

The net cash flow takes into account all of the incoming and outgoing cash movements of a holding. It considers your: 

  • Buys   
  • Sells  
  • Dividends 

Return: 

M1's performance is based on Money-Weighted Return (MWRR).  

MWRR is a calculation that tracks performance based on the timing of all incoming and outgoing cash movements of a holding.  

Larger deposits will have a greater impact on your overall return calculation. Holdings that have been sold will still be included in your overall portfolio performance calculation.  

This is done in an effort to display how your account has performed for its full life, not only for its current holdings. 

 

View performance of entire portfolio, pie, or individual holding  

Performance_2.png

Holdings tab: Cost basis & Unrealized gain 

Unrealized gain 
The Holdings tab, on the other hand, is showing all of your current positions versus their current value (it does not reference any position that you've already sold). This is called unrealized gain.  

This tab's main goal is to give you a snapshot of your current positions and their potential tax liability upon sale. 

Performance_3.png

Cost basis 

Cost basis is the purchase price of a security for tax purposes. 

 

Why did my performance data change? 

Your performance data may be temporarily affected when action is taken on the account that credits, debits, or moves a position.  

This commonly happens when a corporate action occurs. This will be temporary, and will be back to normal shortly after the corporate action is resolved.  

If a corporate action has affected your account, please allow a few business days for your performance data to adjust. Other situations will require our support team to manually reset your performance data. 

 

When does performance data get manually reset? 

This commonly happens after a brokerage account transfer or a request to move a slice from one location to another in your portfolio. 

 

What is backtested performance? 

Backtested performance shows historical performance had you invested in the portfolios at an earlier date. It is provided for informational purposes only. Backtested performance is hypothetical, which means it does not reflect returns  in actual accounts.   

It is not an indicator of future actual results.  

Actual performance for your account may be lower than the performance if you had invested in the securities and held them for an identical period. Backtested performance results have certain limitations. Backtested performance assumes the reinvestment of distributions which M1 allocates proportionally to all positions in your portfolio.  Backtested performance also does not include the burden of taxes or M1 fees and assumes that there are no additional deposits or withdrawals during the indicated period. Backtested performance results assume periodic rebalancing of any of the prepopulated M1 pies in the portfolio.   

It is important to understand that the assumption of rebalancing has an impact on the returns reported.  For example, with quarterly rebalancing on an M1 prepopulated pie, the quarterly return is calculated with the assumption that the portfolio is perfectly in balance at the beginning of each quarter.  

In addition, backtested performance assumes that all the securities used were available during the period presented and assumes that the markets were sufficiently liquid to permit the types of trading used to calculate the performance.   

As with any investment strategy, there is potential for profit as well as the possibility of loss. M1 does not guarantee any minimum level of investment performance or the success of any portfolio or investment strategy. All investments involve risk and investment decisions will not always be profitable.  

Past performance does not guarantee future results. 

 

All examples above are for informational purposes and should not be considered an offer to buy or sell certain securities. M1 does not provide investment advice.

 

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