Expense Ratios & Yield

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jpg57
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Joined: Tue Sep 21, 2021 2:07 pm

Expense Ratios & Yield

Post by jpg57 »

Is the reported yield of a etf or mutual fund before or after the expense ratio? For example, if I buy Vanguard Real Estate ETF VNQ, do I receive the reported 2.19% 12 month yield, or do I get 2.19% minus the 0.12% expense ratio? Or, for a more extreme example, if I buy PIMCO Dynamic Income PDI, do I receive the reported 9.41%, or 9.41% - the 3.72% er? I know that expense ratio diminishes capital appreciation, but what about yield?

Thanks
fabdog
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Re: Expense Ratios & Yield

Post by fabdog »

expenses would be deducted before any payouts would be made

Mike
dbr
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Re: Expense Ratios & Yield

Post by dbr »

Keep in mind reported yield is just that, a report. It is not a contract to pay out a dividend at a certain rate relative to the value of a share at some point in time or another. I say that because you speak of "receive" as if there were a deal here to get a specific thing.

Yield, of course, is the dividend payout divided by the stock price at a time, and that can vary quite a bit. You can go here for example and see the dividend history and the share price over time: https://finance.yahoo.com/quote/VNQ/his ... Close=true
Topic Author
jpg57
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Re: Expense Ratios & Yield

Post by jpg57 »

So, if I am understanding your replies, historical dividend payouts are after expenses. Correct?
sycamore
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Re: Expense Ratios & Yield

Post by sycamore »

jpg57 wrote: Wed Sep 22, 2021 1:27 pm So, if I am understanding your replies, historical dividend payouts are after expenses. Correct?
That's correct.
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ruralavalon
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Re: Expense Ratios & Yield

Post by ruralavalon »

Welcome to the forum :) .

sycamore wrote: Wed Sep 22, 2021 2:30 pm
jpg57 wrote: Wed Sep 22, 2021 1:27 pm So, if I am understanding your replies, historical dividend payouts are after expenses. Correct?
That's correct.
That's correct.

An expense ratio is an historical measure, the total fund costs divided by the total fund assets.

Yield is reported after costs paid. Trailing Twelve Months (TTM) Yield reports the yield actually paid in the last 12 months and is net of costs. SEC Yield is a prediction of future yield as determined by a formula prescribed the the SEC and is also net of costs.
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