Well, if you mean the payout is welcome vs. the fund just dropping, that's probably appropriate. Otherwise it's kind of a non-event in a tax-advantaged account.ColoRetiredGirl wrote: ↑Wed Dec 15, 2021 10:53 pmI got it! The payout is welcome for me. I thought the ex-dividend date was later in the month. I should have checked there first.tooluser wrote: ↑Wed Dec 15, 2021 8:45 pm I looked on the Internet and I cannot find what "***** ********" is, but I can guess. (Item in quotes changed to protect the innocent.)
I have owned VWILX's little brother VWIGX in a taxable account for many years, and while the big "payout" is not particularly welcome, it's way better than a loss. The big Tesla run-up in the past year is almost certainly the villain, but it was wearing a clown nose and honking a horn as it went up. Very entertaining.
[Why did my fund suddenly drop in value?]
Re: What happened to VWILX today? (Vanguard’s International Growth Fund)
Re: What happened to VWILX today? (Vanguard’s International Growth Fund)
Some poor soul made a reference to a football team in the northeast but got his initials mixed upwander wrote: ↑Wed Dec 15, 2021 8:41 pmI guess the title of that thread violates forum policy and the OP's got banned.sycamore wrote: ↑Wed Dec 15, 2021 8:32 pmThat message "You are not authorized to read this forum" shows up when the forum moderators are doing something with that thread. Possibly they're merging it with another thread, or some other admin-y thing.ColoRetiredGirl wrote: ↑Wed Dec 15, 2021 8:21 pmI received a message that I am not entitled to read this thread.livesoft wrote: ↑Wed Dec 15, 2021 7:34 pm Apparently the fudge farkled for this fund. Please read this:
viewtopic.php?f=1&t=364847
Check that link again in 30 minutes.
Re: [Why did my fund suddenly drop in value?]
I want to mention that Fidelity has a good tutorial on their fund distribution website page: Distributions by Fidelity Mutual Funds
Mutual funds that have net gains from the sale of securities, or that earn dividends and interest from securities they hold, are required by law to pass the largest possible portion of those earnings to shareholders...
Why does it look like value of my account went down?
If dividends and capital gains are paid out, it reduces the price of shares, or the net asset value (NAV) of mutual funds. This means the closing price of the investment will drop by the amount that is paid out on the Ex Dividend Date (Ex. Date), even though the payment will happen in the future (Pay Date). The total account value is unaffected.
Distributions that aren't set to pay into a core account will be reinvested, and the number of shares in the account will increase...
-
- Posts: 10433
- Joined: Mon May 18, 2009 5:57 pm
Re: [Why did my fund suddenly drop in value?]
Help a dummy here.
Vanguard FTSE all-world Ex-US Index (VFWAX) record date shows 12/16/21, reinvest date 12/17/21, and payable date 12/20/21.
If I invest today (12/17/21) before close of business, I'm not "buying the dividend," correct? In other words, today should be the day that the price drops.
Do I have that right and do I have Boglehead approval to proceed with a large purchase?
Vanguard FTSE all-world Ex-US Index (VFWAX) record date shows 12/16/21, reinvest date 12/17/21, and payable date 12/20/21.
If I invest today (12/17/21) before close of business, I'm not "buying the dividend," correct? In other words, today should be the day that the price drops.
Do I have that right and do I have Boglehead approval to proceed with a large purchase?
Re: [Why did my fund suddenly drop in value?]
Yes, you are correct. You had to own it at end of market day on 12/16 to receive the dividend. The price will drop today and those reinvesting dividends will have them reinvested at today’s price. Those receiving the dividend in cash will have it paid Monday.Triple digit golfer wrote: ↑Fri Dec 17, 2021 8:10 am Help a dummy here.
Vanguard FTSE all-world Ex-US Index (VFWAX) record date shows 12/16/21, reinvest date 12/17/21, and payable date 12/20/21.
If I invest today (12/17/21) before close of business, I'm not "buying the dividend," correct? In other words, today should be the day that the price drops.
Do I have that right and do I have Boglehead approval to proceed with a large purchase?
-
- Posts: 10433
- Joined: Mon May 18, 2009 5:57 pm
Re: [Why did my fund suddenly drop in value?]
Thank you for confirming.lstone19 wrote: ↑Fri Dec 17, 2021 8:16 amYes, you are correct. You had to own it at end of market day on 12/16 to receive the dividend. The price will drop today and those reinvesting dividends will have them reinvested at today’s price. Those receiving the dividend in cash will have it paid Monday.Triple digit golfer wrote: ↑Fri Dec 17, 2021 8:10 am Help a dummy here.
Vanguard FTSE all-world Ex-US Index (VFWAX) record date shows 12/16/21, reinvest date 12/17/21, and payable date 12/20/21.
If I invest today (12/17/21) before close of business, I'm not "buying the dividend," correct? In other words, today should be the day that the price drops.
Do I have that right and do I have Boglehead approval to proceed with a large purchase?
- drumboy256
- Posts: 673
- Joined: Sat Jun 06, 2020 2:21 pm
Re: [Why did my fund suddenly drop in value?]
VASGX just hit today.
Promise is one thing. Fulfilling that promise is quite another. - Sir Alex Ferguson |
20% IVV / 40% IBIT / 20% IXUS / 20% VGLT + chill
-
- Posts: 107
- Joined: Sun May 16, 2021 9:00 pm
Re: [Why did my fund suddenly drop in value?]
Today VXUS was up .64% while VTIAX was only up .26%. In the past I have seen this around the dividend date but this fund’s last quarterly dividend was in mid December. Anyone have an explanation for this?
-
- Posts: 73
- Joined: Mon Nov 14, 2016 8:23 pm
Re: [Why did my fund suddenly drop in value?]
Yes this time is unusual. The NPV of most funds still jumped after dividend distribution but suddenly dropped after Jan 4.greenway23 wrote: ↑Mon Jan 03, 2022 8:09 pm Today VXUS was up .64% while VTIAX was only up .26%. In the past I have seen this around the dividend date but this fund’s last quarterly dividend was in mid December. Anyone have an explanation for this?
Re: [Why did my fund suddenly drop in value?]
One question I have on this topic:
Let's say I purchase a fund for $100. So my cost basis is $100. Right after that, the fund distributes $10, and therefore drops to $90. Let's say I have set it up to reinvest distributions. So now my cost basis becomes $110, correct? Even though I only put $100 into the fund? And with that reinvestment, my fund holding would go back up to $100. But since my cost basis is now $110, it would show this position at a loss of $10, correct?
Let's say I purchase a fund for $100. So my cost basis is $100. Right after that, the fund distributes $10, and therefore drops to $90. Let's say I have set it up to reinvest distributions. So now my cost basis becomes $110, correct? Even though I only put $100 into the fund? And with that reinvestment, my fund holding would go back up to $100. But since my cost basis is now $110, it would show this position at a loss of $10, correct?
30% US Stocks | 30% Int Stocks | 40% Bonds
Re: [Why did my fund suddenly drop in value?]
Basically yes. The basis on the original shares remains $100. The basis of the shares purchased by reinvesting the distribution is $10. If you then sold all of it and received $100, you'd now have a $10 taxable distribution and a $10 capital loss.Ocean77 wrote: ↑Sun Jan 23, 2022 7:12 pm One question I have on this topic:
Let's say I purchase a fund for $100. So my cost basis is $100. Right after that, the fund distributes $10, and therefore drops to $90. Let's say I have set it up to reinvest distributions. So now my cost basis becomes $110, correct? Even though I only put $100 into the fund? And with that reinvestment, my fund holding would go back up to $100. But since my cost basis is now $110, it would show this position at a loss of $10, correct?
Re: [Why did my fund suddenly drop in value?]
Thank you! I had kind of figured this, but it felt "strange" so I wanted to confirm it. I had always thought that the gain or loss that Fidelity shows me online next to each fund holding tells me exactly how much money so far I have gained or lost in that position. In fact that is not the case at all. I.e. in the example I made above, I did not lose a penny in that fund, but the broker would show a loss of $10. I had not realized until now that it worked like this.lstone19 wrote: ↑Sun Jan 23, 2022 7:28 pmBasically yes. The basis on the original shares remains $100. The basis of the shares purchased by reinvesting the distribution is $10. If you then sold all of it and received $100, you'd now have a $10 taxable distribution and a $10 capital loss.Ocean77 wrote: ↑Sun Jan 23, 2022 7:12 pm One question I have on this topic:
Let's say I purchase a fund for $100. So my cost basis is $100. Right after that, the fund distributes $10, and therefore drops to $90. Let's say I have set it up to reinvest distributions. So now my cost basis becomes $110, correct? Even though I only put $100 into the fund? And with that reinvestment, my fund holding would go back up to $100. But since my cost basis is now $110, it would show this position at a loss of $10, correct?
30% US Stocks | 30% Int Stocks | 40% Bonds
Re: [Why did my fund suddenly drop in value?]
And that is in order to keep your taxes straight. But distributions, gains, losses, as they are entered in your current or future tax returns are not the same thing as tracking your investments. Tracking the fund NAV doesn't do the job either, which is why fund companies have to also publish return data. And that also does not do the job because you may not hold the fund for a full period of time as a constant investment, so you have to calculate a "personal" return to know what happened. Or, even simpler, just look at how much money you have.Ocean77 wrote: ↑Sun Jan 23, 2022 10:01 pmThank you! I had kind of figured this, but it felt "strange" so I wanted to confirm it. I had always thought that the gain or loss that Fidelity shows me online next to each fund holding tells me exactly how much money so far I have gained or lost in that position. In fact that is not the case at all. I.e. in the example I made above, I did not lose a penny in that fund, but the broker would show a loss of $10. I had not realized until now that it worked like this.lstone19 wrote: ↑Sun Jan 23, 2022 7:28 pmBasically yes. The basis on the original shares remains $100. The basis of the shares purchased by reinvesting the distribution is $10. If you then sold all of it and received $100, you'd now have a $10 taxable distribution and a $10 capital loss.Ocean77 wrote: ↑Sun Jan 23, 2022 7:12 pm One question I have on this topic:
Let's say I purchase a fund for $100. So my cost basis is $100. Right after that, the fund distributes $10, and therefore drops to $90. Let's say I have set it up to reinvest distributions. So now my cost basis becomes $110, correct? Even though I only put $100 into the fund? And with that reinvestment, my fund holding would go back up to $100. But since my cost basis is now $110, it would show this position at a loss of $10, correct?
Re: [Why did my fund suddenly drop in value?]
Makes sense, thanks!dbr wrote: ↑Mon Jan 24, 2022 8:35 amAnd that is in order to keep your taxes straight. But distributions, gains, losses, as they are entered in your current or future tax returns are not the same thing as tracking your investments. Tracking the fund NAV doesn't do the job either, which is why fund companies have to also publish return data. And that also does not do the job because you may not hold the fund for a full period of time as a constant investment, so you have to calculate a "personal" return to know what happened. Or, even simpler, just look at how much money you have.Ocean77 wrote: ↑Sun Jan 23, 2022 10:01 pmThank you! I had kind of figured this, but it felt "strange" so I wanted to confirm it. I had always thought that the gain or loss that Fidelity shows me online next to each fund holding tells me exactly how much money so far I have gained or lost in that position. In fact that is not the case at all. I.e. in the example I made above, I did not lose a penny in that fund, but the broker would show a loss of $10. I had not realized until now that it worked like this.lstone19 wrote: ↑Sun Jan 23, 2022 7:28 pmBasically yes. The basis on the original shares remains $100. The basis of the shares purchased by reinvesting the distribution is $10. If you then sold all of it and received $100, you'd now have a $10 taxable distribution and a $10 capital loss.Ocean77 wrote: ↑Sun Jan 23, 2022 7:12 pm One question I have on this topic:
Let's say I purchase a fund for $100. So my cost basis is $100. Right after that, the fund distributes $10, and therefore drops to $90. Let's say I have set it up to reinvest distributions. So now my cost basis becomes $110, correct? Even though I only put $100 into the fund? And with that reinvestment, my fund holding would go back up to $100. But since my cost basis is now $110, it would show this position at a loss of $10, correct?
It would certainly be nice though if the brokerage would do this personal return calculation for me as well. They (Fidelity anyway) already do that for the entire portfolio, but not per fund.
30% US Stocks | 30% Int Stocks | 40% Bonds
Re: [Why did my fund suddenly drop in value?]
I was impacted by the capital gain distribution in the target date 2040 fund, held in a taxable account unfortunately. Using round numbers, for $100k holding I was hit with $15k long term capital gain.
As some have noted above, this now creates and unrealized capital loss in the account. Is it accurate to say that I can sell the full $100k holding now, generate capital losses, and replace with the same underlying mix of holdings (probably switch to ETFs for the stock and bond holding), then just apply these capital losses to offset future capital gains? I want to get out of this target fund due to the uncontrolled tax treatment, so that seems like the best option.
Thanks
As some have noted above, this now creates and unrealized capital loss in the account. Is it accurate to say that I can sell the full $100k holding now, generate capital losses, and replace with the same underlying mix of holdings (probably switch to ETFs for the stock and bond holding), then just apply these capital losses to offset future capital gains? I want to get out of this target fund due to the uncontrolled tax treatment, so that seems like the best option.
Thanks
Re: [Why did my fund suddenly drop in value?]
Welcome! The ongoing discussion is here: Target date funds ... so much for "set and forget" [and WSJ article]
If you need assistance with your portfolio, may I suggest you start a new thread in the Personal Investments forum and post your portfolio information in that thread using the Asking Portfolio Questions format? It will make you think about the "big picture" while giving us the information we need to point you in the right direction.
If you have any questions, ask them in the new thread.
If you need assistance with your portfolio, may I suggest you start a new thread in the Personal Investments forum and post your portfolio information in that thread using the Asking Portfolio Questions format? It will make you think about the "big picture" while giving us the information we need to point you in the right direction.
If you have any questions, ask them in the new thread.
Re: [Why did my fund suddenly drop in value?]
I did exactly this in 2022 - the target date both had higher expenses and was resulting in cap gains. Just make sure you calculate the loss/gain, in my case I had enough losses from other sources to offset any gainsAtlinvest wrote: ↑Wed Feb 02, 2022 10:46 am I was impacted by the capital gain distribution in the target date 2040 fund, held in a taxable account unfortunately. Using round numbers, for $100k holding I was hit with $15k long term capital gain.
As some have noted above, this now creates and unrealized capital loss in the account. Is it accurate to say that I can sell the full $100k holding now, generate capital losses, and replace with the same underlying mix of holdings (probably switch to ETFs for the stock and bond holding), then just apply these capital losses to offset future capital gains? I want to get out of this target fund due to the uncontrolled tax treatment, so that seems like the best option.
Thanks
"It is not necessary to do extraordinary things to get extraordinary results"-Buffet| "Anytime that something is romanticized, you have to really question whether it exists"-Unknown
Re: [Why did my fund suddenly drop in value?]
Vanguard is starting to post dividends for June. Some US ETFs (VTI) haven't been posted yet, but mutual funds and foreign ETFs are set.
Re: [Why did my fund suddenly drop in value?]
none of my US MFs have declared
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Re: [Why did my fund suddenly drop in value?]
Quarterly dividends are starting to show up as many ticker symbols start going ex-dividend today and this week.
-
- Posts: 9477
- Joined: Sun Oct 08, 2017 7:16 pm
Re: [Why did my fund suddenly drop in value?]
Good to know. I looked up the dividend payment schedules for Vanguard, BlackRock, and Schwab and was surprised to see several ETFs not paying out their September dividends until early October. In my case that would be VOO and ITOT.
Re: [Why did my fund suddenly drop in value?]
Happened to me yesterday & I freaked for about 5 seconds and then remembered it's dividend/capital gains season.
Fidelity Total Market(FSKAX) Down 1.31%
Im probably missing something but trying to understand how Fidelity Total Market(FSKAX) is down today -1.31% when 7 out of ten top holdings were up
today. Indexes were mostly up SP500 -.36, dow +56.81, nasdaq +52.36. I just dont see how that can be correct, maybe FSKAX follows something im
not familiar with but Ive had it for many years and dont recall ever seeing anything this extreme from the indexes.
[I merged acuser’s topic into the existing discussion. Thanks to the member who reported the post - Moderator ClaycordJCA.]
today. Indexes were mostly up SP500 -.36, dow +56.81, nasdaq +52.36. I just dont see how that can be correct, maybe FSKAX follows something im
not familiar with but Ive had it for many years and dont recall ever seeing anything this extreme from the indexes.
[I merged acuser’s topic into the existing discussion. Thanks to the member who reported the post - Moderator ClaycordJCA.]
Re: Fidelity Total Market(FSKAX) Down 1.31%
Dividends, coming soon.
Re: Fidelity Total Market(FSKAX) Down 1.31%
A lot of the sectors were in the red today.acuser wrote: ↑Fri Dec 15, 2023 5:02 pm Im probably missing something but trying to understand how Fidelity Total Market(FSKAX) is down today -1.31% when 7 out of ten top holdings were up
today. Indexes were mostly up SP500 -.36, dow +56.81, nasdaq +52.36. I just dont see how that can be correct, maybe FSKAX follows something im
not familiar with but Ive had it for many years and dont recall ever seeing anything this extreme from the indexes.
https://www.bloomberg.com/markets/sectors
"I started with nothing and I still have most of it left."
Re: Fidelity Total Market(FSKAX) Down 1.31%
Oh my,that just didnt come to my mind, but should have. lol. Thanks for your response
Re: Fidelity Total Market(FSKAX) Down 1.31%
Dividend issued today for the fund.
Ex.Date 12/15/2023 Amount $1.61 per share
Pay Date 12/18/2023
Ex.Date 12/15/2023 Amount $1.61 per share
Pay Date 12/18/2023
-
- Posts: 9277
- Joined: Sun Dec 26, 2010 11:47 am
Re: Fidelity Total Market(FSKAX) Down 1.31%
A lot of Fidelity funds have capital gains distributions and pay dividends in December.
Check to see if that was the case. That would explain it.
Check to see if that was the case. That would explain it.
Re: Fidelity Total Market(FSKAX) Down 1.31%
I see that now, I just posted too quickly. Thanks guys
Re: Fidelity Total Market(FSKAX) Down 1.31%
Probably can find it on Fidelity's Site.
Re: Fidelity Total Market(FSKAX) Down 1.31%
Click on the position and then Events tab.
Re: Fidelity Total Market(FSKAX) Down 1.31%
More specifically, most Fidelity funds are divided across the Fridays in December (first four in a five Friday month like this year). Funds of funds will pay two or three days before the end of the year (12/28 this year).protagonist wrote: ↑Fri Dec 15, 2023 5:30 pm A lot of Fidelity funds have capital gains distributions and pay dividends in December.
Check to see if that was the case. That would explain it.
-
- Posts: 48
- Joined: Fri Feb 14, 2020 11:10 am
Wellington Fund
[Thread merged into here --admin LadyGeek]
The Wellington Fund has been doing well thIs year but lost over 4% today. It wasn’t a particularly bad day in the market. Anyone know what happened?
Thanks
The Wellington Fund has been doing well thIs year but lost over 4% today. It wasn’t a particularly bad day in the market. Anyone know what happened?
Thanks
“If you don’t know where you’re going you might wind up someplace else” - Yogi Berra
- TheTimeLord
- Posts: 12130
- Joined: Fri Jul 26, 2013 2:05 pm
Re: Wellington Fund
I would look to see if they distributed a dividend or capital gains.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. |
Run, You Clever Boy! [9085]
-
- Posts: 159
- Joined: Mon Nov 14, 2016 1:18 am
Re: Wellington Fund
'tis the season
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Re: [Why did my fund suddenly drop in value?]
I merged Norwegianwood's thread into the ongoing discussion.
(Thanks to the member who reported the post and provided a link to this thread.)
(Thanks to the member who reported the post and provided a link to this thread.)
Re: [Why did my fund suddenly drop in value?]
When viewed as a Positions View, FSKAX has a "D" within circle next to it. The "D" stand for Dividend. This is their quick way they tell people that a dividend was X'd from the NAV at close today.
As previously stated, clicking FSKAX and the events tab will show you the detail of the dividend.
FXAIX and FSPGX were also X'd today.
As previously stated, clicking FSKAX and the events tab will show you the detail of the dividend.
FXAIX and FSPGX were also X'd today.
Re: [Why did my fund suddenly drop in value?]
Yep. Time to go Christmas shopping. I know it is time when I see this thread and similar threads pop up. It seems like "Fund Distributions" ought to go on the Advent calendar. Anyhow, Happy Holidays. Everyone have a Merry Christmas and a Happy New Year. We are also in Hanukah season, I want to recognize those celebrating that season as well.
A fool and his money are good for business.
-
- Posts: 9277
- Joined: Sun Dec 26, 2010 11:47 am
Re: Fidelity Total Market(FSKAX) Down 1.31%
Yes, I know. I own one, and it is a source of frustration, since I never know until last minute how much the distribution will be...then I have to scramble with end of the year planning.lstone19 wrote: ↑Fri Dec 15, 2023 7:29 pmMore specifically, most Fidelity funds are divided across the Fridays in December (first four in a five Friday month like this year). Funds of funds will pay two or three days before the end of the year (12/28 this year).protagonist wrote: ↑Fri Dec 15, 2023 5:30 pm A lot of Fidelity funds have capital gains distributions and pay dividends in December.
Check to see if that was the case. That would explain it.
I wish I never invested in a "fund of funds". Now I have such high unrealized gains that I don't want to sell for tax reasons.
Re: [Why did my fund suddenly drop in value?]
Happy "Why did my fund go down today?" day to all those that celebrate.nedsaid wrote: ↑Fri Dec 15, 2023 8:23 pm Yep. Time to go Christmas shopping. I know it is time when I see this thread and similar threads pop up. It seems like "Fund Distributions" ought to go on the Advent calendar. Anyhow, Happy Holidays. Everyone have a Merry Christmas and a Happy New Year. We are also in Hanukah season, I want to recognize those celebrating that season as well.
Vanguard Wellington NAV drop
[Merged into existing discussion - moderator oldcomputerguy]
Checked my IRA today, and saw that Vanguard Wellington's NAV dropped 4.41% in one day today. Anyone know why that happened?
Checked my IRA today, and saw that Vanguard Wellington's NAV dropped 4.41% in one day today. Anyone know why that happened?
Re: Vanguard Wellington NAV drop
Dividend and capital gain distribution
Re: Vanguard Wellington NAV drop
That's right - Thanks!
Re: [Why did my fund suddenly drop in value?]
Yes, a very grand Boglehead tradition to go along with Taylor Larimore's annual "My Gift to You" thread. Two great traditions for the Holidays!printer86 wrote: ↑Fri Dec 15, 2023 10:50 pmHappy "Why did my fund go down today?" day to all those that celebrate.nedsaid wrote: ↑Fri Dec 15, 2023 8:23 pm Yep. Time to go Christmas shopping. I know it is time when I see this thread and similar threads pop up. It seems like "Fund Distributions" ought to go on the Advent calendar. Anyhow, Happy Holidays. Everyone have a Merry Christmas and a Happy New Year. We are also in Hanukah season, I want to recognize those celebrating that season as well.
For those of you who are new to the forum, Taylor was in Bastogne, Belgium during Christmas of 1944 during the famous Battle of the Bulge. He was a paratrooper in the 101st Airborne Division. Taylor is still going strong on the forum and in life at 99 years of age. He turns 100 years of age in January 2024. He starts a new "My Gift to You" thread every year
just before Christmas. For me it is a cherished tradition.
The "Why did my fund go down today?" is a fun Boglehead holiday tradition, "My Gift to You" is a serious one.
A fool and his money are good for business.
-
- Posts: 1805
- Joined: Thu Nov 19, 2009 3:55 pm
- Location: Montana
- ResearchMed
- Posts: 16795
- Joined: Fri Dec 26, 2008 10:25 pm
Re: Vanguard Wellington NAV drop
montanagirl wrote: ↑Thu Dec 21, 2023 10:45 amIf it's reinvested it shouldn't change that much should it?
It won't change the total *value* of your holding.
But it *does* change the value of each share, and simultaneously adds a bit more to the total number of shares that you have... making it the same $$ amount.
RM
This signature is a placebo. You are in the control group.