Mark your calendar for year-end fund distributions

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Ever Ready
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Mark your calendar for year-end fund distributions

Post by Ever Ready » Sat Oct 22, 2016 12:47 pm

Mark your calendar for year-end fund distributions
https://personal.vanguard.com/us/insigh ... ule-102016

November 10, 2016 (estimated)
Preliminary capital gains estimates:
List of Vanguard mutual funds and ETFs expected to distribute taxable capital gains,
with scheduled record dates and preliminary capital gains estimates, as of October 31, 2016.
Estimates of year-end capital gains for applicable Vanguard ETFs®,
broken down by short-term, long-term, and total gains.
Estimates of total capital gains per share for all applicable remaining funds.

December 9, 2016 (estimated)
Updated and expanded estimates: Updated estimates of year-end capital gains
for applicable Vanguard mutual funds and ETFs,
broken down by short-term, long-term, and total gains, plus estimated income
and qualified dividend income percentages, as of December 31, 2016.

December 19, 2016 (estimated)
Updated estimated breakdown: Distributions for Vanguard Managed Payout Fund,
as well as estimates for any additional year-end 2016 distributions for this fund.

January 2017
Final year-end dividend and capital gains distributions for 2016.
You'll be able to find this information in our distribution tables,
when available, for mutual funds and ETFs, respectively.
This information will also be available in each fund's or ETF's individual profile section
under Vanguard mutual funds.

FedGuy
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Re: Mark your calendar for year-end fund distributions

Post by FedGuy » Sat Oct 22, 2016 3:17 pm

Cool. Does anyone know where I can find comparable information for Schwab? Every year, dividends appear in my account at some point in December, but I dislike having to log in every day to see if they've arrived so I can go ahead and reinvest them (I don't like having cash sitting uninvested in my brokerage account).

Quark
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Preliminary capital gains estimates

Post by Quark » Thu Nov 10, 2016 4:46 pm

[Thread merged into here, see below. --admin LadyGeek]

Vanguard has published its list of estimated capital gains for funds and ETFs: https://personal.vanguard.com/us/insigh ... ins-112016

jms824
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Re: Preliminary capital gains estimates

Post by jms824 » Thu Nov 10, 2016 5:02 pm

Does VHT pay cap gains? Amount/date?
jms

Quark
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Re: Preliminary capital gains estimates

Post by Quark » Thu Nov 10, 2016 5:08 pm

jms824 wrote:Does VHT pay cap gains? Amount/date?
jms
Is it listed on the page?

If it's not listed "Funds not listed do not expect, as of October 31, 2016, to distribute capital gains in December".

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grabiner
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Re: Preliminary capital gains estimates

Post by grabiner » Thu Nov 10, 2016 10:00 pm

jms824 wrote:Does VHT pay cap gains? Amount/date?
The creation-redemption process means that stock ETFs rarely pay capital gains; none are expected to have capital gains this year.
Wiki David Grabiner

jms824
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Re: Preliminary capital gains estimates

Post by jms824 » Fri Nov 11, 2016 12:12 am

Nice, thx.

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House Blend
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Re: Preliminary capital gains estimates

Post by House Blend » Fri Nov 11, 2016 9:30 am

Interesting to see that the VG Institutional Index has an upcoming estimated CG distribution of 0.28%.

This is a 500 index fund with Institutional share classes only; it is NOT simply another share class of the 500 index for peasant investors (Investor, Admiral, ETF). So it doesn't share in the creation/redemption tax benefits of the VOO ETF.

So here we have another datum on the value-add of holding Vanguard index funds in taxable: without the existence of the ETF, you'd be facing an extra ~0.28% in cap gains distributions.

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Artsdoctor
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Re: Preliminary capital gains estimates

Post by Artsdoctor » Fri Nov 11, 2016 9:38 am

House Blend wrote:Interesting to see that the VG Institutional Index has an upcoming estimated CG distribution of 0.28%.

This is a 500 index fund with Institutional share classes only; it is NOT simply another share class of the 500 index for peasant investors (Investor, Admiral, ETF). So it doesn't share in the creation/redemption tax benefits of the VOO ETF.

So here we have another datum on the value-add of holding Vanguard index funds in taxable: without the existence of the ETF, you'd be facing an extra ~0.28% in cap gains distributions.
I also found this to be very, very interesting. I wonder if it'll be similar to the Fidelity index mutual funds. In the past, there has been some griping that Fidelity customers were being hit with CG distributions from funds which are nearly identical to Vanguard's. Perhaps the illustration you've described above makes things clearer.

I was also surprised to see some of the muni fund CG distributions, and I was more surprised to see that CA funds are not expected to distribute any.

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grabiner
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Re: Preliminary capital gains estimates

Post by grabiner » Fri Nov 11, 2016 10:50 am

Artsdoctor wrote:I was also surprised to see some of the muni fund CG distributions, and I was more surprised to see that CA funds are not expected to distribute any.
When interest rates fall, all bond prices rise, so it isn't surprising that muni funds will distribute capital gains. But the actual gain depends on when the fund bought its bonds, and which bonds it sold (or had called). CA Long-Term Tax-Exempt still has significant unrealized gains, which may be realized in the future as it sells bonds which are no longer long-term.
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Re: Mark your calendar for year-end fund distributions

Post by *3!4!/5! » Sat Nov 12, 2016 4:12 am

Last edited by *3!4!/5! on Sat Nov 12, 2016 4:45 am, edited 2 times in total.

rcsracing
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Re: Mark your calendar for year-end fund distributions

Post by rcsracing » Sat Nov 12, 2016 4:38 am

This year's distributions for me (Fidelity, Total Stock and Total Int'l Stock) will several times bigger than last year due to increased savings into my taxable account.

Are there any actions here for me? I know that some say to avoid buying the distribution and understand the plusses and minuses of that. Beyond that, any cash that ends up in my brokerage account will be invested with the next monthly contribution.

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Re: Mark your calendar for year-end fund distributions

Post by *3!4!/5! » Sat Nov 12, 2016 4:46 am

Wow! There's a fund distributing 25.22%! :shock:

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oldcomputerguy
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Re: Mark your calendar for year-end fund distributions

Post by oldcomputerguy » Sat Nov 12, 2016 6:14 am

Ever Ready wrote:Mark your calendar for year-end fund distributions
https://personal.vanguard.com/us/insigh ... ule-102016
If I have no plans to trade any of the funds in my taxable account, does this impact me (other than tax prep, of course)?
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

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dm200
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Re: Mark your calendar for year-end fund distributions

Post by dm200 » Sat Nov 12, 2016 10:57 am

Simple question (I think): Is the distribution significantly affected by the NAV movement of the particular fund between now and the determination of the exact distribution? I think the answer if no, because these are actual realized gains inside the fund itself.

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Artsdoctor
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Re: Preliminary capital gains estimates

Post by Artsdoctor » Sat Nov 12, 2016 7:55 pm

^ I agree with this. I've had the CA intermediate term fund for so many years and don't remember a single capital gain distribution, although I could be wrong. It stands to reason that long-term bond funds, in a falling rate environment would be more susceptible to capital gains distributions.

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LadyGeek
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Re: Mark your calendar for year-end fund distributions

Post by LadyGeek » Sat Nov 12, 2016 8:28 pm

I merged Quark's thread into here.

To new investors - Fund distributions will change it's price. If you don't understand why, please read the wiki: Why did my fund unexpectedly drop in value

If you have any questions, don't hesitate to ask them here.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

happenstance
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Re: Mark your calendar for year-end fund distributions

Post by happenstance » Wed Nov 16, 2016 7:35 pm

FedGuy wrote:Cool. Does anyone know where I can find comparable information for Schwab? Every year, dividends appear in my account at some point in December, but I dislike having to log in every day to see if they've arrived so I can go ahead and reinvest them (I don't like having cash sitting uninvested in my brokerage account).
For Schwab, the estimates and schedule are more easily found on the CSIM Funds website, rather than the client site.

P&C actuary
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Re: Mark your calendar for year-end fund distributions

Post by P&C actuary » Fri Dec 09, 2016 4:11 pm

The estimated year-end distributions have been updated and split out short term and long term gains.
https://personal.vanguard.com/us/insigh ... /cap-gains

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dm200
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Re: Mark your calendar for year-end fund distributions

Post by dm200 » Fri Dec 09, 2016 4:18 pm

It would also be "prudent" to review whether such distributions will go to reinvest into the same fund OR go elsewhere (such as the MM settlement fund). There is no one right or wrong answer for everyone, so make sure it is what you want. Note that this choice can be the same as or different than the decision for dividends.

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Re: Mark your calendar for year-end fund distributions

Post by *3!4!/5! » Tue Dec 27, 2016 9:32 pm

P&C actuary wrote:The estimated year-end distributions have been updated and split out short term and long term gains.
https://personal.vanguard.com/us/insigh ... /cap-gains
VWEHX (High-Yield bonds) had a small STCG distribution that was not in the list.
https://personal.vanguard.com/us/funds/ ... =INT#tab=4
So sometimes "zero" is just an estimate. This "surprise" probably doesn't do much harm, as it is small, and most would not hold this fund in taxable anyway.

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