Performance drift
When you invest in a portfolio on the Interactive Advisors platform, be aware that there may be differences between the Portfolio Manager’s performance (portrayed in the performance chart on the portfolio page) and the performance realized in your account (accessible from your dashboard).
What causes drift?
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The Portfolio Manager’s compliance with the trading rules
For the protection of clients, trades that a Portfolio Manager makes that are outside the Interactive Advisors trading rules are not replicated in client accounts.
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Your risk score and exclusions
Your risk score and any securities you choose to exclude from being traded in your account could result in certain trades executed by the Portfolio Manager not being replicated in your account.
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Your cash flow behavior
Performance drift will result if you frequently invest additional cash or partially redeem your investment.
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Inability to mirror in exact proportion
Depending on the size of your investment relative to the Portfolio Manager’s, translating each trade the Portfolio Manager makes into whole shares in your account can lead to small rounding differences, and therefore slightly different allocations.