Why did Fidelity Total Market Index fund drop -1.55% today?

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JB2013
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Why did Fidelity Total Market Index fund drop -1.55% today?

Post by JB2013 »

I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
willinghamt19
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by willinghamt19 »

Also an owner. I'm assuming we're about to see a dividend payout of 1.55%.
livesoft
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by livesoft »

How would one check if there was a dividend or other distribution today?
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by willinghamt19 »

It should should up under history maybe around the time of night that fidelity funds trade.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by sailaway »

Fidelity 500 index fund also had a drop, albeit a smaller one. The last ex dividend date for FSKAX was 4/12/2019, so this is the right time of the month, albeit a weird number of months between the two dates. I can't look at lots for my 401a (net benefits) like I can for my IRAs, so I can't look at the history for FSKAX the way I can FXAIX.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by sergeant »

Look at the sticky in the Investing section. It might have an answer.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by livesoft »

livesoft wrote: Fri Dec 13, 2019 5:32 pm How would one check if there was a dividend or other distribution today?
Go to Fidelity.com
Click on the banner at the top in the YELLOW color.

Unfortunately, Fidelity does not create a list with fund ticker symbols. Instead you need to know the name of your fund to find it in the list.
Last edited by livesoft on Fri Dec 13, 2019 5:57 pm, edited 1 time in total.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by whodidntante »

In the absence of a distribution, my hypothesis is they jacked up the ER to 1.55% and made it retroactive. Well, I guess that's still a distribution but payable to the Johnson family. Some Bogleheads warned us we couldn't trust Fidelity. :twisted:
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by sailaway »

whodidntante wrote: Fri Dec 13, 2019 5:56 pm In the absence of a distribution, my hypothesis is they jacked up the ER to 1.55% and made it retroactive. Well, I guess that's still a distribution but payable to the Johnson family. Some Bogleheads warned us we couldn't trust Fidelity. :twisted:
They value tends to come out on a Friday, but actual distributions are not made until the following Monday.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Trader Joe »

JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
The answer is dividend distribution. This is a good thing.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Call_Me_Op »

May also be a capital gain distribution. Many Fidelity funds had one today.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by oldcomputerguy »

livesoft wrote: Fri Dec 13, 2019 5:32 pm How would one check if there was a dividend or other distribution today?
It doesn't show up yet on the Fidelity page for this year, but the "Fees and Distributions" tab (https://fundresearch.fidelity.com/mutua ... e=o-NavBar) shows that there was a dividend and capital gain distribution on Friday December 15, 2017 and on Friday December 14, 2018, so it's reasonable to think that there would be likewise a distribution on today (Friday December 13, 2019). If there is a distribution today, they'll probably show it on the web site by Monday or perhaps Tuesday.

ETA: To the OP, you might find this post on the forum helpful.

[Why did my fund suddenly drop in value?]
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by AllieTB1323 »

From their website: "A dividend of 1.383 per share, declared on 12/13/2019, will be posted to your account on 12/16/2019."
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Spirit Rider »

Call_Me_Op wrote: Fri Dec 13, 2019 6:20 pm May also be a capital gain distribution. Many Fidelity funds had one today.
If you follow the link pointed out be @livesoft. You will see the estimated capital gains for Fidelity Total Market Index Fund (FSKAK) on 12/16/19 are $0.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by sailaway »

Spirit Rider wrote: Fri Dec 13, 2019 7:21 pm
Call_Me_Op wrote: Fri Dec 13, 2019 6:20 pm May also be a capital gain distribution. Many Fidelity funds had one today.
If you follow the link pointed out be @livesoft. You will see the estimated capital gains for Fidelity Total Market Index Fund (FSKAK) on 12/16/19 are $0.
That comes in a couple of weeks.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by LISD »

Trader Joe wrote: Fri Dec 13, 2019 6:18 pm
JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
The answer is dividend distribution. This is a good thing.
After a capital gain distribution the stock price is reduced by the amount of the distribution. This is not the case for a dividend.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by livesoft »

LISD wrote: Fri Dec 13, 2019 7:34 pmAfter a capital gain distribution the stock price is reduced by the amount of the distribution. This is not the case for a dividend.
This is also the case for a dividend that will be paid. The price (NAV) drop happens on the ex-dividend date and not actually on the payable date. This goes for mutual funds, ETFs, and stocks.
Last edited by livesoft on Fri Dec 13, 2019 7:36 pm, edited 1 time in total.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Spirit Rider »

sailaway wrote: Fri Dec 13, 2019 7:28 pm
Spirit Rider wrote: Fri Dec 13, 2019 7:21 pm
Call_Me_Op wrote: Fri Dec 13, 2019 6:20 pm May also be a capital gain distribution. Many Fidelity funds had one today.
If you follow the link pointed out be @livesoft. You will see the estimated capital gains for Fidelity Total Market Index Fund (FSKAK) on 12/16/19 are $0.
That comes in a couple of weeks.
Huh? 12/16 is Monday.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by sailaway »

Spirit Rider wrote: Fri Dec 13, 2019 7:36 pm
sailaway wrote: Fri Dec 13, 2019 7:28 pm
Spirit Rider wrote: Fri Dec 13, 2019 7:21 pm
Call_Me_Op wrote: Fri Dec 13, 2019 6:20 pm May also be a capital gain distribution. Many Fidelity funds had one today.
If you follow the link pointed out be @livesoft. You will see the estimated capital gains for Fidelity Total Market Index Fund (FSKAK) on 12/16/19 are $0.
That comes in a couple of weeks.
Huh? 12/16 is Monday.
The Dividend distribution will likely appear on Monday. The Capital Gains distribution was 12/28 last year.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by dual »

Why are the capital gain distributions for the Fidelity total market fund much larger than the distributions for the Vanguard total market fund?
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by marcopolo »

Trader Joe wrote: Fri Dec 13, 2019 6:18 pm
JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
The answer is dividend distribution. This is a good thing.
Not if you own it in a taxable account.
Once in a while you get shown the light, in the strangest of places if you look at it right.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by sailaway »

marcopolo wrote: Fri Dec 13, 2019 8:17 pm
Trader Joe wrote: Fri Dec 13, 2019 6:18 pm
JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
The answer is dividend distribution. This is a good thing.
Not if you own it in a taxable account.
It might not be AS good, but is it really a not good thing?
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by LISD »

livesoft wrote: Fri Dec 13, 2019 7:35 pm
LISD wrote: Fri Dec 13, 2019 7:34 pmAfter a capital gain distribution the stock price is reduced by the amount of the distribution. This is not the case for a dividend.
This is also the case for a dividend that will be paid. The price (NAV) drop happens on the ex-dividend date and not actually on the payable date. This goes for mutual funds, ETFs, and stocks.
Ok, sorry, I'm confused. I just looked up my Lockheed stock. There was a 2.2% (~$9/share) dividend paid out on 9/27, but looking at the price during that time around the ex-dividend date (or the payable date) I don't see that the price dropped $9.

On a mutual fund (like the Fidelity fund discussed) I can understand why the price would drop (the fund managers are just distributing what came in from the bonds or from stock dividends). But for an individual stock the price drops after a dividend?????
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by marcopolo »

sailaway wrote: Fri Dec 13, 2019 8:18 pm
marcopolo wrote: Fri Dec 13, 2019 8:17 pm
Trader Joe wrote: Fri Dec 13, 2019 6:18 pm
JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
The answer is dividend distribution. This is a good thing.
Not if you own it in a taxable account.
It might not be AS good, but is it really a not good thing?
No, because it is essentially a forced withdrawal, which can trigger taxes being due. I would much rather be able to control the timing and amount of my withdrawals.
Once in a while you get shown the light, in the strangest of places if you look at it right.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Ferdinand2014 »

JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!

Dividend per share of $1.383 to be posted to your account by 12/16.

All Accounts>positions>click blue highlighted FSKAX>notifications
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by livesoft »

LISD wrote: Fri Dec 13, 2019 8:28 pmOk, sorry, I'm confused. I just looked up my Lockheed stock. There was a 2.2% (~$9/share) dividend paid out on 9/27, but looking at the price during that time around the ex-dividend date (or the payable date) I don't see that the price dropped $9.
It was relatively easy to look up the Lockheed dividend:
https://investors.lockheedmartin.com/st ... nd-history

and find out that the ex-dividend dates were 2019-11-29 and 2019-08-30 and earlier. Perhaps because the payable dates were/are weeks after the ex-dividend that you didn't associate the price drops with the dividend. Furthermore, normal price action is layered upon any change because of going ex-dividend.

Also the quarterly dividends are about 1/4th of the $9/share you mentioned because 2.2% yield is an annual yield.

I hope this helps with the confusion and serves to add some understanding to all this.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by jebmke »

sailaway wrote: Fri Dec 13, 2019 8:18 pm It might not be AS good, but is it really a not good thing?
At best, it is neutral (ie., if your tax rate is zero). Otherwise, you get hit with a tax payment so it is a net loss.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Spirit Rider »

sailaway wrote: Fri Dec 13, 2019 7:39 pm
Spirit Rider wrote: Fri Dec 13, 2019 7:36 pm
sailaway wrote: Fri Dec 13, 2019 7:28 pm
Spirit Rider wrote: Fri Dec 13, 2019 7:21 pm
Call_Me_Op wrote: Fri Dec 13, 2019 6:20 pm May also be a capital gain distribution. Many Fidelity funds had one today.
If you follow the link pointed out be @livesoft. You will see the estimated capital gains for Fidelity Total Market Index Fund (FSKAK) on 12/16/19 are $0.
That comes in a couple of weeks.
Huh? 12/16 is Monday.
The Dividend distribution will likely appear on Monday. The Capital Gains distribution was 12/28 last year.
Did you miss the part where I reported the exact date and amount of the FSKAX estimated capital gains distributions.

Year-end 2018, both the dividend and capital gains distributions for FSKAX were on 12/14/18.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by kelvan80 »

There was a couple hour lag where the price dropped and then the message popped

A dividend of 1.383 per share, declared on 12/13/2019, will be posted to your account on 12/16/2019. Important information about how distributions are calculated and posted to your account.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by nedsaid »

'Tis the holiday season. You can tell when the holiday specials like Rudolf the Rednosed Reindeer and a Charlie Brown Christmas run on TV. You can also tell the holiday season with year end dividend and capital gains distributions and the Boglehead threads asking why their favorite fund dropped in price. A reminder that I need to go Christmas shopping.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by sailaway »

Spirit Rider wrote: Fri Dec 13, 2019 9:04 pm
sailaway wrote: Fri Dec 13, 2019 7:39 pm
Spirit Rider wrote: Fri Dec 13, 2019 7:36 pm
sailaway wrote: Fri Dec 13, 2019 7:28 pm
Spirit Rider wrote: Fri Dec 13, 2019 7:21 pm
If you follow the link pointed out be @livesoft. You will see the estimated capital gains for Fidelity Total Market Index Fund (FSKAK) on 12/16/19 are $0.
That comes in a couple of weeks.
Huh? 12/16 is Monday.
The Dividend distribution will likely appear on Monday. The Capital Gains distribution was 12/28 last year.
Did you miss the part where I reported the exact date and amount of the FSKAX estimated capital gains distributions.

Year-end 2018, both the dividend and capital gains distributions for FSKAX were on 12/14/18.
This is copy and paste from the fidelity site for FSKAX for capital gains history:

12/28/18 $0.064 $69.97
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by whodidntante »

sailaway wrote: Fri Dec 13, 2019 6:03 pm
whodidntante wrote: Fri Dec 13, 2019 5:56 pm In the absence of a distribution, my hypothesis is they jacked up the ER to 1.55% and made it retroactive. Well, I guess that's still a distribution but payable to the Johnson family. Some Bogleheads warned us we couldn't trust Fidelity. :twisted:
They value tends to come out on a Friday, but actual distributions are not made until the following Monday.
Hi. Pleased to me you. I'm whodidntante, but you can call me who.

I was kidding. :happy
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Dottie57 »

Trader Joe wrote: Fri Dec 13, 2019 6:18 pm
JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
The answer is dividend distribution. This is a good thing.
I agree,
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by marcopolo »

Dottie57 wrote: Fri Dec 13, 2019 10:05 pm
Trader Joe wrote: Fri Dec 13, 2019 6:18 pm
JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
The answer is dividend distribution. This is a good thing.
I agree,
Can you explain why you think a forced liquidation of a portion of your investment is a good thing?
Once in a while you get shown the light, in the strangest of places if you look at it right.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Dottie57 »

marcopolo wrote: Fri Dec 13, 2019 10:30 pm
Dottie57 wrote: Fri Dec 13, 2019 10:05 pm
Trader Joe wrote: Fri Dec 13, 2019 6:18 pm
JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
The answer is dividend distribution. This is a good thing.
I agree,
Can you explain why you think a forced liquidation of a portion of your investment is a good thing?
I will take the dividend and cap gains to live on. Right now I don’t reinvest. Dividends and cap gains are part of investing which you can’t avoid.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by fortfun »

Maybe this is how they pay for the new "zero" funds ;)
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by marcopolo »

Dottie57 wrote: Fri Dec 13, 2019 10:39 pm
marcopolo wrote: Fri Dec 13, 2019 10:30 pm
Dottie57 wrote: Fri Dec 13, 2019 10:05 pm
Trader Joe wrote: Fri Dec 13, 2019 6:18 pm
JB2013 wrote: Fri Dec 13, 2019 5:29 pm I'm curious why FSKAX dropped by 1.55% today when it appears that stocks were quite unchanged today. Just saw a big hit on my account and don't understand why. Dow was up 3 points, nasdaq up 17, and S&P up .23.

So, what exactly happened here? Thanks!
The answer is dividend distribution. This is a good thing.
I agree,
Can you explain why you think a forced liquidation of a portion of your investment is a good thing?
I will take the dividend and cap gains to live on. Right now I don’t reinvest. Dividends and cap gains are part of investing which you can’t avoid.
You could do the same by simply selling what you need. Then you could control the timing and the exact amount.

At best, dividends and cap gains distributions are neutral. in many cases they are detrimental. So, I don't think they really qualify as a "good thing".

Just because you can't avoid them, does not make them good. It could be one of the things you consider when choosing your investments.
Once in a while you get shown the light, in the strangest of places if you look at it right.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by AlwaysaQ »

Sailaway

FSKAX posted two capital gains distributions in December 2018. One on 12/14 and one on 12/28.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by RCL »

sailaway wrote: Fri Dec 13, 2019 9:09 pm
Spirit Rider wrote: Fri Dec 13, 2019 9:04 pm
sailaway wrote: Fri Dec 13, 2019 7:39 pm
Spirit Rider wrote: Fri Dec 13, 2019 7:36 pm
sailaway wrote: Fri Dec 13, 2019 7:28 pm
That comes in a couple of weeks.
Huh? 12/16 is Monday.
The Dividend distribution will likely appear on Monday. The Capital Gains distribution was 12/28 last year.
Did you miss the part where I reported the exact date and amount of the FSKAX estimated capital gains distributions.

Year-end 2018, both the dividend and capital gains distributions for FSKAX were on 12/14/18.
This is copy and paste from the fidelity site for FSKAX for capital gains history:

12/28/18 $0.064 $69.97
I think Fidelity combines the LTCG & Dividend in the mid December Distribution. It makes me do a little more work to keep my spreadsheet correct, as I keep C.G.'s(long term & Short term) separate from Dividends.
My records do show a small STCG was distributed last year on 12-28-18.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Dottie57 »

marcopolo wrote: Fri Dec 13, 2019 10:45 pm
Dottie57 wrote: Fri Dec 13, 2019 10:39 pm
marcopolo wrote: Fri Dec 13, 2019 10:30 pm
Dottie57 wrote: Fri Dec 13, 2019 10:05 pm
Trader Joe wrote: Fri Dec 13, 2019 6:18 pm

The answer is dividend distribution. This is a good thing.
I agree,
Can you explain why you think a forced liquidation of a portion of your investment is a good thing?
I will take the dividend and cap gains to live on. Right now I don’t reinvest. Dividends and cap gains are part of investing which you can’t avoid.
You could do the same by simply selling what you need. Then you could control the timing and the exact amount.

At best, dividends and cap gains distributions are neutral. in many cases they are detrimental. So, I don't think they really qualify as a "good thing".

Just because you can't avoid them, does not make them good. It could be one of the things you consider when choosing your investments.
It is what it is. No use complaining cap gains and dividends are detrimental. You can’t change it so try to use it for your benefit. I will be using them for part of my spending plan for 2020.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by marcopolo »

Dottie57 wrote: Fri Dec 13, 2019 10:57 pm
marcopolo wrote: Fri Dec 13, 2019 10:45 pm
Dottie57 wrote: Fri Dec 13, 2019 10:39 pm
marcopolo wrote: Fri Dec 13, 2019 10:30 pm
Dottie57 wrote: Fri Dec 13, 2019 10:05 pm

I agree,
Can you explain why you think a forced liquidation of a portion of your investment is a good thing?
I will take the dividend and cap gains to live on. Right now I don’t reinvest. Dividends and cap gains are part of investing which you can’t avoid.
You could do the same by simply selling what you need. Then you could control the timing and the exact amount.

At best, dividends and cap gains distributions are neutral. in many cases they are detrimental. So, I don't think they really qualify as a "good thing".

Just because you can't avoid them, does not make them good. It could be one of the things you consider when choosing your investments.
It is what it is. No use complaining cap gains and dividends are detrimental. You can’t change it so try to use it for your benefit. I will be using them for part of my spending plan for 2020.
I agree, and I will also be using them for living expenses.

The only thing i was pointing to is that this kind of thinking of is what can mis-lead some readers into chasing "dividend" investing approaches. You know, because Dottie57 and Trader Joe said they were a good thing. :beer
Once in a while you get shown the light, in the strangest of places if you look at it right.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Spirit Rider »

sailaway wrote: Fri Dec 13, 2019 9:09 pm
Spirit Rider wrote: Fri Dec 13, 2019 9:04 pm
sailaway wrote: Fri Dec 13, 2019 7:39 pm
Spirit Rider wrote: Fri Dec 13, 2019 7:36 pm
sailaway wrote: Fri Dec 13, 2019 7:28 pm
That comes in a couple of weeks.
Huh? 12/16 is Monday.
The Dividend distribution will likely appear on Monday. The Capital Gains distribution was 12/28 last year.
Did you miss the part where I reported the exact date and amount of the FSKAX estimated capital gains distributions.

Year-end 2018, both the dividend and capital gains distributions for FSKAX were on 12/14/18.
This is copy and paste from the fidelity site for FSKAX for capital gains history:

12/28/18 $0.064 $69.97
Actually we are both right. Correct copy and paste showing LTCG on 12/14/18 and STCG on 12/28.

12/28/18 $0.064 $69.97
12/14/18 $0.258 $73.28

However, none of this changes Fidelity's capital gain estimates for Dec 2019.

Fidelity® Total Market Index Fund STCG 0.00 LTCG 0.00 Total 0.00 Ex 2/13/2019 Pay 12/16/2019
Chip
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Chip »

Spirit Rider wrote: Fri Dec 13, 2019 11:58 pm Actually we are both right. Correct copy and paste showing LTCG on 12/14/18 and STCG on 12/28.

12/28/18 $0.064 $69.97
12/14/18 $0.258 $73.28

However, none of this changes Fidelity's capital gain estimates for Dec 2019.

Fidelity® Total Market Index Fund STCG 0.00 LTCG 0.00 Total 0.00 Ex 2/13/2019 Pay 12/16/2019
I think the 12/28/18 distribution was a "true-up" distribution after Fido realized they hadn't distributed enough to shareholders to avoid excise taxes on the fund. If my memory is correct a second December distribution has been very rare.

My 1099 supplemental shows that the 12/28 distribution was 98.2% qualified dividends and 1.8% STCG.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by oldcomputerguy »

sailaway wrote: Fri Dec 13, 2019 7:28 pm
Spirit Rider wrote: Fri Dec 13, 2019 7:21 pm
Call_Me_Op wrote: Fri Dec 13, 2019 6:20 pm May also be a capital gain distribution. Many Fidelity funds had one today.
If you follow the link pointed out be @livesoft. You will see the estimated capital gains for Fidelity Total Market Index Fund (FSKAK) on 12/16/19 are $0.
That comes in a couple of weeks.
Last year the fund did two capital gains distributions, one on December 14 (the same day as the dividend distribution) and one two weeks later on December 28.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by livesoft »

Fidelity gets a poor grade for only updating their Fees&Distributions tab after the market close. They knew the amount ahead of that time (i.e. when it was declared) and could have put the info right there for all to see. It is true that the re-investing price was unknown until slightly after the market close.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by Dottie57 »

marcopolo wrote: Fri Dec 13, 2019 11:27 pm
Dottie57 wrote: Fri Dec 13, 2019 10:57 pm
marcopolo wrote: Fri Dec 13, 2019 10:45 pm
Dottie57 wrote: Fri Dec 13, 2019 10:39 pm
marcopolo wrote: Fri Dec 13, 2019 10:30 pm

Can you explain why you think a forced liquidation of a portion of your investment is a good thing?
I will take the dividend and cap gains to live on. Right now I don’t reinvest. Dividends and cap gains are part of investing which you can’t avoid.
You could do the same by simply selling what you need. Then you could control the timing and the exact amount.

At best, dividends and cap gains distributions are neutral. in many cases they are detrimental. So, I don't think they really qualify as a "good thing".

Just because you can't avoid them, does not make them good. It could be one of the things you consider when choosing your investments.
It is what it is. No use complaining cap gains and dividends are detrimental. You can’t change it so try to use it for your benefit. I will be using them for part of my spending plan for 2020.
I agree, and I will also be using them for living expenses.

The only thing i was pointing to is that this kind of thinking of is what can mis-lead some readers into chasing "dividend" investing approaches. You know, because Dottie57 and Trader Joe said they were a good thing. :beer
I agree dividend chasing is not wise. But I will happily use distributions from total stock for living expenses. I will need to sell more shares to live on too!
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by tenkuky »

Curiously the dividend reinvested same day 12/13 for one of my 403b accounts, but did not in the other (maybe will post 12/16).
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by sailaway »

Why are there so many newbies suddenly watching so closely? I have never seen this question before, but there are variations of it on every board, including two separate ones here on bogleheads.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by tenkuky »

sailaway wrote: Sat Dec 14, 2019 10:33 am Why are there so many newbies suddenly watching so closely? I have never seen this question before, but there are variations of it on every board, including two separate ones here on bogleheads.
It's a good thing, no? I remember when I was a "newbie" 5 years ago today and asking questions, digesting all the information. It can be a shock to see a drop in value discordant with other trends, till you relax and realize it's distribution time.
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Re: Why did Fidelity Total Market Index fund drop -1.55% today?

Post by LiveSimple »

A dividend of 1.383 per share, declared on 12/13/2019, has been posted to your account on 12/16/2019
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