Wellington Fund

[Dahl49]

I transferred funds to the Wellington Admiral mid december and paid $80 after dividend it dropped to $76 yet the market was still going up. How did this fund take a sudden drop?

Thanks

[retiringwhen]

I transferred funds to the Wellington Admiral mid december and paid $80 after dividend it dropped to $76 yet the market was still going up. How did this fund take a sudden drop?

Thanks

interest rates are rising (most days). look at the chart for the 10 year treasury. Wellington owns a lot of bonds.

[goblue100]

https://www.bogleheads.org/wiki/Why_did ... p_in_value

[tibbitts]

I transferred funds to the Wellington Admiral mid december and paid $80 after dividend it dropped to $76 yet the market was still going up. How did this fund take a sudden drop?

Thanks

If you mean the fund dropped after it paid a dividend, well, equity funds always drop by the amount of any dividends they pay. If they don't that's due to that day's market activity interacting with the dividend payment.

Basically share prices on equity mutual funds don't matter in the sense that they can't be used for comparisons over time.

[rlangford]

I transferred funds to the Wellington Admiral mid december and paid $80 after dividend it dropped to $76 yet the market was still going up. How did this fund take a sudden drop?

Thanks

Wellington Admiral paid a dividend of $4.7506 per share. This is why your fund dropped by $4 per share from $80 to $76. After reinvesting dividends you would have the same total dollar value. The fund had a total return of 2.18% in December.

[retiringwhen]

I transferred funds to the Wellington Admiral mid december and paid $80 after dividend it dropped to $76 yet the market was still going up. How did this fund take a sudden drop?

Thanks

interest rates are rising (most days). look at the chart for the 10 year treasury. Wellington owns a lot of bonds.

I misread the OP, I thought it was meant that it was purchased after the dividend.

The dividend and CG distributions were huge this year, \nearly $5/share!

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