VG Bond Fund Yield
I own Vanguard's Intermediate Muni Bond fund (VWIUX, or in non-admiral form, VWITX). On VG's web site, it shows a 30 day yield of 1.58%. The actual monthly dividend I receive is over 3% (annualized). I know there is always a small difference between stated yield and actual because of bonds coming into and going out of the portfolio (though the turnover in this fund is only 11%). But the actual difference is almost double??
I called Vanguard and talked to three individuals - none of which could tell me specifically why there was this large of a difference. One had no idea, the other two fumbled through explanations that were not accurate or sensable. That is a shame on Vanguard, but I'm still trying to figure this out. If I invested in a bond fund that had a 3% 30 day yield, and it paid me 1.5%, I would be upset. Any ideas?
Retired on 5/31/2011 at 54