Performance Benchmarking Overview
A benchmark is a reference point—like an ETF or mix of stocks and bonds—that you may use to compare your investment portfolio’s performance on M1.
With M1’s Benchmarking feature, you can pick a custom benchmark that’s right for you and your strategy. Choose any of these benchmarks:
Any stock or fund on M1
A custom portfolio you build to serve your benchmarking needs
Where can I find the Benchmarking screen?
On the M1 mobile app,
Navigate to the Portfolio screen for your Invest account
Tap on the Performance Chart icon in upper right corner
Scroll down on the Performance screen
Tap on the tile “Benchmark your performance”
On M1 desktop,
Navigate to the Portfolio screen for your Invest account
Tap on the link “View Benchmarks”
How is my return calculated?
The benchmarking screen shows the cumulative, daily Time-Weighted Rate of Return (TWRR) for your M1 Pie or Slice relative to a benchmark’s daily time-weighted return. TWRR reflects the performance of your asset allocation and any changes you’ve made over the selected time period.
Your performance is shown on a Pie or Slice level, not on the account level. Uninvested cash and unmanaged holdings are not taken into account for your Pie or Slice value.
What are the default benchmarks?
VT is Vanguard’s Total World Stock Market ETF (learn more here). It seeks to track the performance of the FTSE Global All Cap Index, which covers US and International, developed and emerging markets. This is useful for globally diversified portfolios of 100% stocks.
AOR is iShares Core 60/40 Balanced Allocation ETF (learn more here). It seeks to track the performance of an index composed of a portfolio of 60% equity and 40% fixed income funds intended to represent a growth allocation target risk strategy. This is a common benchmark used for portfolios with a mix of stocks and bonds.
How can I add a benchmark?
On the M1 mobile app,
Tap on the find icon in the upper right corner
Type the name of the stock, ETF, or Model portfolio you want to add
If you want to add a custom benchmark,
Tap on the ‘My Pies’ tab
Select from the list of My Pies you’ve already built
On M1 desktop,
Tap on the search field
Type the name of the stock, ETF, or Model portfolio you want to add
If you want to add a custom benchmark,
Tap on the 'Choose a Pie’ link
Select from the list of My Pies you’ve already built
How can I remove a benchmark?
On the M1 mobile app,
Scroll down to the tile showing your benchmark
Swipe to the left and tap the delete icon
On M1 desktop,
Hover over the tile showing your benchmark
Tap on the ‘x’ in the upper right corner of the tile
How can I create a new custom portfolio to use as a benchmark?
To create a new custom portfolio as a benchmark,
Open the side rail menu
Tap on ‘My Pies’
Tap on the button ‘Build a stock-and-fund Pie’
Create a new My Pie. Be sure to name it something you'll remember when going to choose it as a benchmark.
Navigate back to the benchmarking screen.
Follow the directions given in step 3 under “How can I add a benchmark?” to add a custom benchmark
What is dividend yield?
Dividend yield represents the weighted average dividend yield for this Pie, Slice, or ETF based on trailing twelve-month dividends.
What is expense ratio?
Expense ratio is the weighted average expense ratio for this Pie, Slice, or ETF. Expense ratio is associated with ETFs in this Pie, Slice, or ETF and charged by the fund, not M1.
This information is general in nature and should not be considered tax advice or used to make investment decisions. Account data shown represents past performance and does not guarantee future results. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future performance. Using M1 Borrow's margin account can add to these risks, and you should review your margin account risk disclosure before borrowing. Nothing in this informational site is an offer, solicitation of an offer, or advice to buy or sell any security and you are encouraged to consult your personal investment, legal, or tax advisors.
Exchange-Traded Funds (ETFs) used as benchmarks may experience tracking error,
meaning their performance may differ from the underlying indices they aim to replicate. Factors contributing to tracking error include ETF management fees, trading costs, cash drag, sampling techniques, and rebalancing methodologies. ETFs trade on exchanges and may periodically trade at prices above (premium) or below (discount) their net asset value (NAV). Additionally, ETFs may involve additional costs such as brokerage commissions and bid-ask spreads. The benchmark performance displayed reflects the ETF's market price returns, which may differ from its NAV returns and the pure index returns. These factors should be considered when using ETFs as performance benchmarks.
The benchmarks provided are for informational purposes only. It is your responsibility to select benchmarks that reasonably align with your investment strategy, asset allocation, risk tolerance, and time horizon. Comparing your portfolio to benchmarks with fundamentally different characteristics may lead to misleading conclusions about relative performance. We do not recommend or endorse any particular benchmark as appropriate for your individual circumstances.
Benchmark performance data is obtained from third-party providers, believed to be
reliable, but we make no representations or warranties regarding the accuracy,
completeness, or timeliness of this information. There may be timing differences between when benchmark data becomes available and when it is displayed in our platform. We are not responsible for any errors or omissions in the benchmark data provided, and you should not rely exclusively on this information when making investment decisions.
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