When I look at "YTD Return" on Yahoo MF quote, does that return include dividends or does it just reflect the change in market price?
I thought it included any dividends, but got confused when researching VFIAX. I know I'm making a very basic mistake here, so please help me out.
The price of VFIAX on 12/31/08 was $81.60, on 9/30/09 it was $97.45 or a 19.42% increase in share price. During that same period VFIAX also paid out $1.51 in dividends or 1.8%. That would make the total return on 21.22%.
Looking at the S&P over the same period it increased by only 17.03% (903.25 to 1057.08). That's a 4.19% difference! Now I know the S&P didn't pay out 4+ % dividend and VFIAX can't be beating the index by that much. What am I missing?
Thanks in advance for setting me straight.
I thought it included any dividends, but got confused when researching VFIAX. I know I'm making a very basic mistake here, so please help me out.
The price of VFIAX on 12/31/08 was $81.60, on 9/30/09 it was $97.45 or a 19.42% increase in share price. During that same period VFIAX also paid out $1.51 in dividends or 1.8%. That would make the total return on 21.22%.
Looking at the S&P over the same period it increased by only 17.03% (903.25 to 1057.08). That's a 4.19% difference! Now I know the S&P didn't pay out 4+ % dividend and VFIAX can't be beating the index by that much. What am I missing?
Thanks in advance for setting me straight.