Bond fund capital gains question

[Quantum Sufficit]

Hi Folks, it has been quite a while since I posted in this forum...too busy enjoying my 4th year of FIRE I guess.

Anyway, Vanguard just announced their annual projected capital gains for funds. I own 2 bond funds on the list. I know that stock fund NAV will drop after the pay date of the capital gain. Does it work the same for bond funds if you take the Capital gain as cash deposited into checking?

Thanks and have a Nice Thanksgiving and Christmas.

Quantum Sufficit

 

[pb4uski]

Yes, same principle... the NAV is the total assets of the fund divided by the number of shares and the total assets is lower by the amount of capital gains distributed so the NAV goes down.