Vanguard funds prices at end of day

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alanf56
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Vanguard funds prices at end of day

Post by alanf56 » Mon Mar 26, 2012 4:17 pm

Does anyone know why it is not until 2 hours after the market closes that funds like VTSAX, VTIAX and VBTLX get updated? It isn't just on the Vanguard site it seems to be the case everywhere...

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MossySF
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Re: Vanguard funds prices at end of day

Post by MossySF » Mon Mar 26, 2012 4:33 pm

The elves at Vanguard need time to calculate fund prices on their abacuses. There's extra delays when Vanguard managers forget to leave milk & cookies out for them.

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Langkawi
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Re: Vanguard funds prices at end of day

Post by Langkawi » Mon Mar 26, 2012 4:56 pm

5:30 PM Eastern is the deadline to report the NAVs to FINRA.

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grabiner
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Re: Vanguard funds prices at end of day

Post by grabiner » Mon Mar 26, 2012 8:26 pm

alanf56 wrote:Does anyone know why it is not until 2 hours after the market closes that funds like VTSAX, VTIAX and VBTLX get updated? It isn't just on the Vanguard site it seems to be the case everywhere...
There are a lot of calculations that need to be done. If a stock or bond didn't trade at all today, or if trading was halted mid-day and not resumed, then its price has to be estimated. If a fund holds stocks which trade on the Japanese market, the fund has to decide how much of a fair-value adjustment to make for the difference between the closing price hours ago in Japan and the current value in the US.
Wiki David Grabiner

alanf56
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Re: Vanguard funds prices at end of day

Post by alanf56 » Mon Mar 26, 2012 8:34 pm

grabiner wrote:
There are a lot of calculations that need to be done. If a stock or bond didn't trade at all today, or if trading was halted mid-day and not resumed, then its price has to be estimated. If a fund holds stocks which trade on the Japanese market, the fund has to decide how much of a fair-value adjustment to make for the difference between the closing price hours ago in Japan and the current value in the US.
Thanks David,

I guess with all the computing capabilities we have in this world I expected almost instant computation. I guess I never realized all the manual computations that might go into a funds NAV. This also explains why it takes a little longer for the other services to get the updates I guess too. Vanguard seems to get this info entered in first and then release it to the outside world. It was always a curiosity for me and I finally asked the question and YOU had the answer! Thanks again.

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bertilak
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Re: Vanguard funds prices at end of day

Post by bertilak » Tue Mar 27, 2012 9:29 am

MossySF wrote:The elves at Vanguard need time to calculate fund prices on their abacuses. There's extra delays when Vanguard managers forget to leave milk & cookies out for them.
Can you simplify that highly-technical explanation for those of us that are less technically minded?
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