Why is my vanguard target fund down today?
Why is my vanguard target fund down today?
According to Vanguard the market did great today, but my target fund is down about 3%. Any one else experience this today? This is the Vandars retirement target 2045 fund.
Last edited by Nasman on Tue Dec 29, 2015 5:16 pm, edited 1 time in total.
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Re: Why is my vanguard target fund down today?
It probably paid its year end dividends and gains... Nothing to worry about.
Bob
Bob
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Re: Why is my vanguard target fund down today?
The Vanguard Target Retirement 2045 Fund is down by 1.21% (not 3%).
This is because the fund paid a distribution (see the wiki article linked above).
This is because the fund paid a distribution (see the wiki article linked above).
Re: Why is my vanguard target fund down today?
Good to know by Vanguard Investors
For the rest of us, most Recent Distributions
https://investor.vanguard.com/mutual-fu ... b=overview
For those investing in Managed Payout Fund
https://personal.vanguard.com/us/insigh ... und-122015
For the rest of us, most Recent Distributions
https://investor.vanguard.com/mutual-fu ... b=overview
For those investing in Managed Payout Fund
https://personal.vanguard.com/us/insigh ... und-122015
~ Member of the Active Retired Force since 2014 ~
Re: Why is my vanguard target fund down today?
I got the same shock today. My VTXVX (2015) fund is down 6.22% !! Hope the distribution is a whopper - it's never had a year-end dist of anywhere near that! 2014 was about 2.5%
Not really been thrilled with it over the past few years in many regards. Maybe the "Target Date Fund" naysayers are correct?!
Not really been thrilled with it over the past few years in many regards. Maybe the "Target Date Fund" naysayers are correct?!
Re: Why is my vanguard target fund down today?
Can you be more specific about why you are not thrilled? I am a bit of a TD fund naysayer, but most likely the reasons are not what is concerning you.wihakowi wrote:I got the same shock today. My VTXVX (2015) fund is down 6.22% !! Hope the distribution is a whopper - it's never had a year-end dist of anywhere near that! 2014 was about 2.5%
Not really been thrilled with it over the past few years in many regards. Maybe the "Target Date Fund" naysayers are correct?!
If you are holding the fund in a tax deferred account you can automatically reinvest the distribution and the whole thing is a non-event. If you are holding this fund in a taxable account, then big distributions have a tax cost. That may be a reason not to hold such a fund in a taxable account, but that is not something that is an objection to such funds but rather to where the investor has chosen to hold the fund.
Re: Why is my vanguard target fund down today?
Looks like a normal year-end distribution: $0.299.wihakowi wrote:I got the same shock today. My VTXVX (2015) fund is down 6.22% !! Hope the distribution is a whopper
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2%?
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Re: Why is my vanguard target fund down today?
That being said, if OP's numbers are correct, why was it down at all? If there was a 2% dividend and a 3% market price decline, that still implies a 1% decline in a market where equities were up 1% around the world.
Re: Why is my vanguard target fund down today?
plus CG distributions of ~.70linenfort wrote:Looks like a normal year-end distribution: $0.299.wihakowi wrote:I got the same shock today. My VTXVX (2015) fund is down 6.22% !! Hope the distribution is a whopper
...
2%?
Stay hydrated; don't sweat the small stuff
Re: Why is my vanguard target fund down today?
Totaling 6.9%? More than the fund went down.jebmke wrote:plus CG distributions of ~.70linenfort wrote:Looks like a normal year-end distribution: $0.299.wihakowi wrote:I got the same shock today. My VTXVX (2015) fund is down 6.22% !! Hope the distribution is a whopper
...
2%?
Hopefully that qualifies as a whopper.
- Artsdoctor
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Re: Why is my vanguard target fund down today?
wihakowi wrote:I got the same shock today. My VTXVX (2015) fund is down 6.22% !! Hope the distribution is a whopper - it's never had a year-end dist of anywhere near that! 2014 was about 2.5%
Not really been thrilled with it over the past few years in many regards. Maybe the "Target Date Fund" naysayers are correct?!
Wihakowi,wihakowi wrote:I got the same shock today. My VTXVX (2015) fund is down 6.22% !! Hope the distribution is a whopper - it's never had a year-end dist of anywhere near that! 2014 was about 2.5%
Not really been thrilled with it over the past few years in many regards. Maybe the "Target Date Fund" naysayers are correct?!
That was a huge distribution (dividends, ST cap gain, LT cap gain). If you're holding this in a tax-advantaged account, it doesn't matter. However, if you're holding this fund in your taxable, you'd have to consider it extremely tax-inefficient and decided whether you want to continue holding it there.
Re: Why is my vanguard target fund down today?
Here are distributions for 2015 and 2014:wihakowi wrote:I got the same shock today. My VTXVX (2015) fund is down 6.22% !! Hope the distribution is a whopper - it's never had a year-end dist of anywhere near that! 2014 was about 2.5%
Code: Select all
Dividend $0.29900 12/28/2015 12/29/2015 12/30/2015 $14.33 — 2.16% B
ST Cap Gain $0.00900 12/28/2015 12/29/2015 12/30/2015 $14.33 — —
LT Cap Gain $0.68800 12/28/2015 12/29/2015 12/30/2015 $14.33 — —
Dividend $0.28400 12/26/2014 12/29/2014 12/30/2014 $15.38 — —
ST Cap Gain $0.02500 12/26/2014 12/29/2014 12/30/2014 $15.38 — —
LT Cap Gain $0.14300 12/26/2014 12/29/2014 12/30/2014 $15.38
It is what you'd expect from a total market fund that is about 50% stocks and 50% bonds, with about 40% of stocks in international. If you're not happy with it, then perhaps you should revisit your asset allocation to determine if it meets your needs and desires.wihakowi wrote: Not really been thrilled with it over the past few years in many regards. Maybe the "Target Date Fund" naysayers are correct?!
Personally, I would replace most of the bond funds held by this TR fund with CDs purchased directly from banks or credit unions (so no international bonds, and no total bond market), but other than that, I'd be happy owning this fund if I wanted a split of about 50/50 stocks/bonds, and didn't want to tilt away from market weightings.
As noted by others, I might prefer to hold the individual components for better tax efficient asset location.
Kevin
If I make a calculation error, #Cruncher probably will let me know.
Re: Why is my vanguard target fund down today?
I guess that brings up one form of naysaying: When one has a TR fund it may be more difficult to understand why it has the performance it has, leading to fear, uncertainty, and doubt.
Re: Why is my vanguard target fund down today?
Total distribution ~$1.00 on a NAV of ~$15.00 (pre-dist)linenfort wrote:Totaling 6.9%? More than the fund went down.jebmke wrote:plus CG distributions of ~.70linenfort wrote:Looks like a normal year-end distribution: $0.299.wihakowi wrote:I got the same shock today. My VTXVX (2015) fund is down 6.22% !! Hope the distribution is a whopper
...
2%?
Hopefully that qualifies as a whopper.
Stay hydrated; don't sweat the small stuff
Re: Why is my vanguard target fund down today?
This was definitely an odd year for the Vanguard Target Date funds. I'm in the 2030 fund and it normally has next to no capital gains distributions every year. This year, the capital gains distribution was were two thirds of the dividend payment. I wasn't expecting that tax bill.
Re: Why is my vanguard target fund down today?
I am a huge fan of the Vanguard Target Date Funds, and those funds, or its components, make up over 80% of our entire portfolio. That said, I don't think they belong in a taxable investment account. Better to buy the individual components and use a tax-free fund in place of the TBM and TIBM funds.
Even a stopped clock is right twice a day.
- arcticpineapplecorp.
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Re: Why is my vanguard target fund down today?
Great responses everyone! Here's one more that I didn't see mentioned yet:Nasman wrote:According to Vanguard the market did great today, but my target fund is down about 3%. Any one else experience this today? This is the Vandars retirement target 2045 fund.
Nasman,if you're in a fund that has a goal of retirement in 2045, then what does it matter what happened in the fund today (or any day for that matter, between now and 2045)??
In other words, why are you so closely watching the daily performance of your 2045 fund, even though you're not planning on using this money for another 30 years??
Also, did you mean to write Vanguard instead of Vandars? I guess as long as it's not a Vandal retirement fund, you're good.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
Re: Why is my vanguard target fund down today?
Probably the single most important point to be made in this thread. (above)arcticpineapplecorp. wrote: Nasman,if you're in a fund that has a goal of retirement in 2045, then what does it matter what happened in the fund today (or any day for that matter, between now and 2045)??
In other words, why are you so closely watching the daily performance of your 2045 fund, even though you're not planning on using this money for another 30 years??
Wikipedia says that Vandar was a Jedi master of Yoda's species.Also, did you mean to write Vanguard instead of Vandars? I guess as long as it's not a Vandal retirement fund, you're good.
Ok, it was wookiepedia, but it really does say that.