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

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

Post 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.
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anon_investor
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Re: Total Stock Market Index vs. ETF pricing

Post 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.
retired@50
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Re: Total Stock Market Index vs. ETF pricing

Post 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,
This is one person's opinion. Nothing more.
Topic Author
palanzo
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Re: Total Stock Market Index vs. ETF pricing

Post 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:
Topic Author
palanzo
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Re: Total Stock Market Index vs. ETF pricing

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

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

Post by Unhandled »

Someone else asked the same question about an hour ago.

viewtopic.php?f=1&t=326295&newpost=5514626
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hornet96
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Re: Why is 9/24 percent changes different for VTSAX and VTI?

Post 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

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

Post by jcar »

Do these two funds always have the same return? If so, why have them. Thanks.
lazynovice
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Re: Why is 9/24 percent changes different for VTSAX and VTI?

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

Post 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
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.
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