VTWAX - distribution date?
- PhinanceMD
- Posts: 441
- Joined: Fri Apr 12, 2019 3:33 pm
- Location: PNW
VTWAX - distribution date?
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
Re: VTWAX - distribution date?
For mutual funds, the record date is what matters: if you own shares on the record date, you get the dividend.
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- PhinanceMD
- Posts: 441
- Joined: Fri Apr 12, 2019 3:33 pm
- Location: PNW
Re: VTWAX - distribution date?
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
Re: VTWAX - distribution date?
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.
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