Simple question. I know net yield accounts for everything like expense ratio's, while gross yield do not. However, places like Vanguard or google finance, or marketwatch don't qualify their yield statistic.
So for example:
https://www.marketwatch.com/investing/fund/vusxx
Is the NET yield after the expense ratio 0.04% which is shown as yield on that page, or is it -0.05%?
Thanks!
Does yield include expense ratio?
Re: Does yield include expense ratio?
In the financial world, "Yield" is net, after expenses.
But in case that is too clear, there are multiple ways to measure yield. Bond funds, for instance have YTM (yield to maturity), 30 day yield, SEC yield, etc.
But in case that is too clear, there are multiple ways to measure yield. Bond funds, for instance have YTM (yield to maturity), 30 day yield, SEC yield, etc.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
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Re: Does yield include expense ratio?
OK Thank you. SO then the yield is positive for VUSXX
What about things like 30 day SEC Yield?
Re: Does yield include expense ratio?
Others on Bogleheads have suggested that 30 day SEC yield is probably the best way to compare two different funds, because it is a fixed standard from the Securities and Exchange Commission (SEC).
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
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Re: Does yield include expense ratio?
It is net, but that doesn’t matter when you are doing a relative comparison. SEC yield does not accurately indicate how big the next dividend payout will be, but is a good yardstick for comparing two similar funds.
Fund A yield is 15% more than fund B. That could be true at 0.2% yield, 2% yield or 20% yield.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
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Re: Does yield include expense ratio?
I think the reason NET is important is if that if it was gross it wouldn't factor in expense ratio. It is completely possible for a fund to have a higher gross yield while also lower net yield because of expense ratio. Right?David Jay wrote: ↑Tue Jul 27, 2021 11:41 amIt is net, but that doesn’t matter when you are doing a relative comparison. SEC yield does not accurately indicate how big the next dividend payout will be, but is a good yardstick for comparing two similar funds.
Fund A yield is 15% more than fund B. That could be true at 0.2% yield, 2% yield or 20% yield.
Re: Does yield include expense ratio?
As I said in my first post above, all "yield" in the financial world is net.powercherry5 wrote: ↑Tue Jul 27, 2021 12:50 pmI think the reason NET is important is if that if it was gross it wouldn't factor in expense ratio. It is completely possible for a fund to have a higher gross yield while also lower net yield because of expense ratio. Right?David Jay wrote: ↑Tue Jul 27, 2021 11:41 amIt is net, but that doesn’t matter when you are doing a relative comparison. SEC yield does not accurately indicate how big the next dividend payout will be, but is a good yardstick for comparing two similar funds.
Fund A yield is 15% more than fund B. That could be true at 0.2% yield, 2% yield or 20% yield.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius