Vanguard tracking error?

[wabmester]

I noticed VTSAX (Vanguard TSM) was down about 0.6% today, a fair sized drop.    And that's on a day when every market index was up marginally.   I suppose this can be traced to tracking error, but does anybody have any insight?

What seems especially weird is that Vanguards TIPS fund often moves in the opposite direction of my direct TIPS holdings, and several of those bonds are in my Vanguard account.    I would have thought that my holdings and the fund's holdings would have been marked to market in the same way.

 

[Bob_Smith]

I noticed that too. Wasn't today the day TSM distributed? I think that happened last year, and they didn't take the distribution into account when they reported the decline.

 

[charlie]

Several of Vanguard's funds had the same problem
today. I think the fund's NAV will reflect the reinvestment later tonight or tomorrow .... at
least I hope so!

Cheers,

Charlie

 

[Bob_Smith]

Yep, the distributions are usually posted by the early AM. It should all show up in the totals tomorrow. I have three funds that distributed today: Value Index, Small Cap Value, and TSM. A bunch of others did too (including the TIPS fund).