How Life Cycle Fund Returns Are Calculated

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How Life Cycle Fund Returns Are Calculated

Postby involuntarilyretired » Wed May 22, 2013 11:02 am

I have a concern about my Target Retirement Income account (VTINX) and am hoping someone can help me out. This fund is made up of 5 other funds:
1 Vanguard Total Bond Market II Index Fund Investor Shares† 44.7%
2 Vanguard Total Stock Market Index Fund Investor Shares 21.3%
3 Vanguard Inflation-Protected Securities Fund Investor Shares 19.8%
4 Vanguard Total International Stock Index Fund Investor Shares 9.3%
5 Vanguard Prime Money Market Fund 4.9%
On 5/21/2013 the first fund went up by .18%, the second one went up by .17%, the third one by .21% the fourth one by .19%, and the fifth one (only 4.9% of the total fund) by .0%. I would have thought this would give me a total of approximately .17%, yet what I got was .08%. I’m sure there’s a good explanation and am hoping someone can tell me what it is. Thanks in advance.
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Re: How Life Cycle Fund Returns Are Calculated

Postby Iorek » Wed May 22, 2013 11:43 am

I'd be curious too on the facts you describe. Have you tried asking Vanguard?
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Re: How Life Cycle Fund Returns Are Calculated

Postby gerrym51 » Wed May 22, 2013 11:48 am

I know this will sound flippant-but by computer. i'm sure there is a program that takes that days pluses and minuses in each find and bonds and melds them into one weighted figure. the original program for this is probably 10 feet high. I doubt that anybody at vanguard(except the eggheads) could explain the process in less than a week.
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Re: How Life Cycle Fund Returns Are Calculated

Postby involuntarilyretired » Wed May 22, 2013 12:59 pm

Iorek wrote:I'd be curious too on the facts you describe. Have you tried asking Vanguard?


I didn't talk to Vanguard. I trust them and since my question was more out of curiosity than a real concern I didn't want to turn it into an issue.
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Re: How Life Cycle Fund Returns Are Calculated

Postby Iorek » Wed May 22, 2013 1:01 pm

involuntarilyretired wrote:
Iorek wrote:I'd be curious too on the facts you describe. Have you tried asking Vanguard?


I didn't talk to Vanguard. I trust them and since my question was more out of curiosity than a real concern I didn't want to turn it into an issue.


I wasn't suggesting they screwed up, just that the answer might be interesting to know...
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