Yesterday (12/16/15) I nearly swallowed my chewing tobacco when I saw VWIAX dropped 2.84%. Not my first rodeo so I looked at Vanguard's year-end estimated distribution table and saw Wellesley's was 2.4%.
This still didn't smell right because I assume the 2.84% drop was due to the 2.4% distribution plus a 0.44% actual loss. Yesterday should have been a winner because stocks were way up and bonds were only slightly off. I therefore would have expected a NAV drop of significantly less that 2.4%.
Looking closer at the table's notes, Vanguard says the distribution estimates don't include December returns. Hmm I recall that I get my distributions within a couple of days of the NAV drop (12/16/15).
How does this play out? Does Vanguard execute an adjustment to the distribution payment (hopefully positive) after the first of the year?