VTWAX - distribution date?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
Topic Author
PhinanceMD
Posts: 441
Joined: Fri Apr 12, 2019 3:33 pm
Location: PNW

VTWAX - distribution date?

Post by PhinanceMD »

Hi all, wanting to buy 3K of VTWAX (Taxable account). I have heard that one should wait till after distribution to purchase as this lowers the share price. If I buy today 6/18/21 would that be after the distribution? I see 3 dates listed on the distribution calendar 6/17, 6/18, 6/21 (record date, reinvest date, payable date) thanks in advance.
60/30/10
ruud
Posts: 765
Joined: Sat Mar 03, 2007 12:28 pm
Location: san francisco bay area

Re: VTWAX - distribution date?

Post by ruud »

For mutual funds, the record date is what matters: if you own shares on the record date, you get the dividend.
.
User avatar
Topic Author
PhinanceMD
Posts: 441
Joined: Fri Apr 12, 2019 3:33 pm
Location: PNW

Re: VTWAX - distribution date?

Post by PhinanceMD »

Thank you, I see, so the record date was yesterday, if I want to purchase today, will the new “lower” price (after distribution) be reflected in my purchasing today?
60/30/10
ruud
Posts: 765
Joined: Sat Mar 03, 2007 12:28 pm
Location: san francisco bay area

Re: VTWAX - distribution date?

Post by ruud »

Phinance wrote: Fri Jun 18, 2021 11:04 am Thank you, I see, so the record date was yesterday, if I want to purchase today, will the new “lower” price (after distribution) be reflected in my purchasing today?
Yes. But on the flip side, you won't get the dividend. In a taxable account, avoiding the dividend is a slight savings (since you won't have to pay taxes on the dividend distribution you avoided), but in a tax-advantaged account it really doesn't matter.

However, because the stock market is down 1% today, the benefit from buying today instead of yesterday is actually much bigger.
.
Post Reply