Hatch and Sharesight calculate your total returns a little differently. There are two main reasons why:
1. How we calculate the average cost price of your shares
Find out more about the different ways we calculate the cost price of your shares here.
2. How we deal with exchange rates when we show your returns in NZD.
Hatch uses the current exchange rate to show your total return in NZD, which means it doesn't include any gains or losses you've made from currency fluctuations.
In Sharesight, your NZD total return takes into account exchange rates over time to show you the gains and losses you've made from your shares AND currency fluctuations.
The example below shows this more clearly:
1 Jan: You deposit $1554 NZD at 1 NZD = 0.65 USD (initial exchange rate)
5 Jan: You buy 10 shares for $101 USD a share (cost price of shares = $1,010 USD). - The exchange rate is 1 NZD = 0.60 USD (buy exchange rate)
10 Feb: Your 10 shares are worth $100 USD each (current value of shares = $1,000 USD) - The exchange rate is now 1 NZD = 0.50 USD (current exchange rate)
Using Hatch
$1010 USD (cost price of shares) / 0.5 (current exchange rate) = $2,020 NZD cost price
$1,000 USD (current value of shares) / 0.50 (current exchange rate) = $2,000 NZD current value = Return of $-20 NZD
Using Sharesight
$1010 USD (cost price of shares) / 0.60 (buy exchange rate) = $1,683 NZD cost price$1,000 USD (current value of shares) / 0.50 (current exchange rate) = $2,000 NZD current value = Total return of $317 NZD
Other differences between the two return calculations
Using Hatch
Your total return (which you can find at the top of your portfolio page) takes into account every deposit, withdrawal, fee, dividend, US tax payment and all returns you've made from shares you've bought through Hatch, and either sold or held onto.
Read more:
Using Sharesight
Your total return also includes every deposit, withdrawal, dividend and the brokerage fees you've paid, but not exchange fees, or any US tax you've paid.