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Total Stock Market Index vs. ETF pricing [Vanguard mutual fund vs. ETF]

Posted: Thu Sep 24, 2020 8:30 pm
by palanzo
Today (09.24.2020) the Total Stock Market Admiral VTSAX closed down -0.19% and the ETF VTI closed up 0.25%. How is this possible? I did a search and could not find an explanation in an existing thread.

Re: Total Stock Market Index vs. ETF pricing

Posted: Thu Sep 24, 2020 8:33 pm
by anon_investor
palanzo wrote: Thu Sep 24, 2020 8:30 pm Today (09.24.2020) the Total Stock Market Admiral VTSAX closed down -0.19% and the ETF VTI closed up 0.25%. How is this possible? I did a search and could not find an explanation in an existing thread.
The mutual fund (VTSAX) paid out a quarterly dividend today (the ETF pays out on a different date).

The price is reduced by the amount of the dividend.

Re: Total Stock Market Index vs. ETF pricing

Posted: Thu Sep 24, 2020 8:35 pm
by retired@50
palanzo wrote: Thu Sep 24, 2020 8:30 pm Today (09.24.2020) the Total Stock Market Admiral VTSAX closed down -0.19% and the ETF VTI closed up 0.25%. How is this possible? I did a search and could not find an explanation in an existing thread.
I'd check into the dividend dates (Record, Reinvest, Payable). These sort of questions come around 4 times per year. :D

See links:

https://investor.vanguard.com/mutual-fu ... ions/vtsax

https://investor.vanguard.com/etf/profi ... utions/vti

Regards,

Re: Total Stock Market Index vs. ETF pricing

Posted: Thu Sep 24, 2020 8:36 pm
by palanzo
anon_investor wrote: Thu Sep 24, 2020 8:33 pm
palanzo wrote: Thu Sep 24, 2020 8:30 pm Today (09.24.2020) the Total Stock Market Admiral VTSAX closed down -0.19% and the ETF VTI closed up 0.25%. How is this possible? I did a search and could not find an explanation in an existing thread.
The mutual fund (VTSAX) paid out a quarterly dividend today (the ETF pays out on a different date).

The price is reduced by the amount of the dividend.
Hah! I did not think of that. Thank you anon_investor. :sharebeer

I should have thought of that. :oops:

Re: Total Stock Market Index vs. ETF pricing

Posted: Thu Sep 24, 2020 8:48 pm
by palanzo
retired@50 wrote: Thu Sep 24, 2020 8:35 pm
palanzo wrote: Thu Sep 24, 2020 8:30 pm Today (09.24.2020) the Total Stock Market Admiral VTSAX closed down -0.19% and the ETF VTI closed up 0.25%. How is this possible? I did a search and could not find an explanation in an existing thread.
I'd check into the dividend dates (Record, Reinvest, Payable). These sort of questions come around 4 times per year. :D

See links:

https://investor.vanguard.com/mutual-fu ... ions/vtsax

https://investor.vanguard.com/etf/profi ... utions/vti

Regards,
Yup and I fell into that trap myself today. :oops:

Why is 9/24 percent changes different for VTSAX and VTI?

Posted: Thu Sep 24, 2020 9:04 pm
by BoogyBogle
[Thread merged into here, see below. --admin LadyGeek]

9/24 VTI is up +.21% https://investor.vanguard.com/etf/profi ... rmance/vti

9/24 VTSAX is down -.19% https://investor.vanguard.com/mutual-fu ... ance/vtsax

A .4% variance seems pretty high doesn't it?

Re: Why is 9/24 percent changes different for VTSAX and VTI?

Posted: Thu Sep 24, 2020 9:14 pm
by Unhandled
Someone else asked the same question about an hour ago.

viewtopic.php?f=1&t=326295&newpost=5514626

Re: Why is 9/24 percent changes different for VTSAX and VTI?

Posted: Thu Sep 24, 2020 9:17 pm
by hornet96
They have different dividend declaration dates. Search the forum for “did my fund declare a dividend” for further info. Also, see: https://personal.vanguard.com/pdf/DIVDAT_092020.pdf

Welcome to the forum!

Re: Why is 9/24 percent changes different for VTSAX and VTI?

Posted: Thu Sep 24, 2020 9:53 pm
by jcar
Do these two funds always have the same return? If so, why have them. Thanks.

Re: Why is 9/24 percent changes different for VTSAX and VTI?

Posted: Thu Sep 24, 2020 9:58 pm
by lazynovice
jcar wrote: Thu Sep 24, 2020 9:53 pm Do these two funds always have the same return? If so, why have them. Thanks.
One is an ETF and one is a mutual fund but they are different share classes of the same fund. In theory, they should have the same return but ETFs trade at premiums/discounts while mutual funds trade at NAV so the return can be different based on when you buy/sell.

Re: Total Stock Market Index vs. ETF pricing [Vanguard mutual fund vs. ETF]

Posted: Fri Sep 25, 2020 9:46 am
by LadyGeek
I merged BoogyBogle's thread into the on-going discussion. The combined thread is in the Investing - Theory, News & General forum (theory).

Regarding dividends, new investors should see the wiki: Why did my fund unexpectedly drop in value