Why is VEURX yield so high? (9.5% or 10.23%)

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bill99
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Why is VEURX yield so high? (9.5% or 10.23%)

Post by bill99 »

Maybe this is a dumb question, but why such a high yield for Vanguard European Stock Index Fund?

Is it simply because VEURX's share price has dropped so much?

(Morningstar quotes 9.5%, Scottrade quotes 10.23%. Can't find a yield listed on Vanguard's site.)
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White Coat Investor
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Re: Why is VEURX yield so high? (9.5% or 10.23%)

Post by White Coat Investor »

bill99 wrote:Maybe this is a dumb question, but why such a high yield for Vanguard European Stock Index Fund?

Is it simply because VEURX's share price has dropped so much?

(Morningstar quotes 9.5%, Scottrade quotes 10.23%. Can't find a yield listed on Vanguard's site.)
Must be an error. VG doesn't generally publish SEC yields for its international funds, but there is no way the yield is 3 times that of the S&P.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
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alvinsch
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Post by alvinsch »

Vanguard site lists $1.497 as the dividend distributions for 2008. With it's current $14.66 NAV that would imply a trailing 10.21% yield. However I wouldn't count on that much going forward because a lot of companies are lowering their dividends and I'd guess a lot of those dividends were issued in foreign currency when the dollar was quite a bit weaker for much of 08.

- Al
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jh
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bill99
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Post by bill99 »

Thanks. Sounds like the yield could drop pretty quick. I sure hope the EU doesn't totally collapse...I've got a nephew in school over there. :shock:
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Opponent Process
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Post by Opponent Process »

the yield should drop but Europe had been yielding more than North America for several years.
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lazyday
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Post by lazyday »

European stock markets have higher yield than US.

The Russell site shows a yield of just over 6% for Europe, 1/31/09: http://www.russell.com/indexes/characte ... _Index.asp

More than double the U.S. Russel 1000 at the same date: http://www.russell.com/indexes/characte ... _Index.asp

Perhaps VEURX may have higher yield than the index, if there have been net redemptions, if for example people have been adding to the FTSE fund but not as much to the old international funds, including the fund-of-funds. There's been other threads about this kind of thing, usually about why a new international fund has low yield. I've posted asking about it myself with VEU, thinking that the difference was too great to be caused by the fund being relatively new but not brand new.

It can be caused by redemptions (or purchases in the case of VEU) after dividends are received by the fund, but before year end distributions.
bill99 wrote:Is it simply because VEURX's share price has dropped so much?
Of course, this is the biggest cause of high yield in general. :) The price has also dropped since 1/31.


More indexes from Russell:
http://www.russell.com/Indexes/characte ... arison.asp
http://www.russell.com/indexes/characte ... arison.asp
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