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"SEC Yield" on bond funds
Old 02-22-2016, 04:16 PM   #1
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"SEC Yield" on bond funds

I'm looking at information on bond funds on the Vanguard site. For example the Long Term Bond Index Fund (VBLTX) states that the SEC yield is 3.85%.

What does this number reflect?
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Old 02-22-2016, 05:03 PM   #2
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The SEC yield is a standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund's expenses. This is also referred to as the "standardized yield."
A good source for definitions like this:
SEC Yield Definition | Investopedia
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Old 02-22-2016, 05:09 PM   #3
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Originally Posted by braumeister View Post
A good source for definitions like this:
SEC Yield Definition | Investopedia
thank you braumeister. exactly what I was looking for. As I understand the definition then, it does not factor increases in share price due to falling interest rates. Exactly what I wanted to know.
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Old 02-24-2016, 08:48 AM   #4
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"What is an SEC yield?

The SEC yield is so named because it is the yield companies are required to report by the Securities and Exhange Commission. The SEC yield figure approximates the yield an investor would receive in a year assuming that each bond in the portfolio is held until maturity. This measure also assumes reinvestment of all income, and it accounts for fees and expenses."

Distribution Yield vs. SEC Yield: Which Should You Use?
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Old 02-24-2016, 08:58 AM   #5
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Originally Posted by HadEnuff View Post
I'm looking at information on bond funds on the Vanguard site. For example the Long Term Bond Index Fund (VBLTX) states that the SEC yield is 3.85%.

What does this number reflect?
Under the Portfolio and management tab you can see that the portfolio yield to maturity is 4%. On the Overview tab the expenses ar 0.2%. That is a net yield of 3.8% and differs from the 3.83% SEC yield, probably due to rounding in the portfolio yield to maturity.
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Old 02-24-2016, 10:43 AM   #6
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thanks, y'all.

I appreciate the info.
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