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Wellesley 2.84% drop vs. 2.4% distribution
Old 12-17-2015, 01:53 PM   #1
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Wellesley 2.84% drop vs. 2.4% distribution

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?

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Old 12-17-2015, 02:33 PM   #2
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I'm sure its all legit. Have some eggnog and relax.

Wild Bill shoulda taken more out of his IRA when he could have. . . .
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Old 12-18-2015, 06:58 AM   #3
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The page you linked to is the estimated distribution. You should be happier by using the actual distribution.

When I did the numbers, I saw the fund price increase by 0.24 (or so) the day of distribution.
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