Wellington Fund

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Dahl49
Posts: 56
Joined: Tue Oct 07, 2014 9:04 am

Wellington Fund

Post by 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
Posts: 1978
Joined: Sat Jul 08, 2017 10:09 am
Location: New Jersey, USA

Re: Wellington Fund

Post by retiringwhen »

Dahl49 wrote: Wed Jan 13, 2021 9:42 am 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
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Joined: Sun Dec 01, 2013 10:31 am

Re: Wellington Fund

Post by goblue100 »

Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns
tibbitts
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Joined: Tue Feb 27, 2007 6:50 pm

Re: Wellington Fund

Post by tibbitts »

Dahl49 wrote: Wed Jan 13, 2021 9:42 am 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
Posts: 46
Joined: Thu Jun 09, 2016 11:53 am

Re: Wellington Fund

Post by rlangford »

Dahl49 wrote: Wed Jan 13, 2021 9:42 am 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
Posts: 1978
Joined: Sat Jul 08, 2017 10:09 am
Location: New Jersey, USA

Re: Wellington Fund

Post by retiringwhen »

retiringwhen wrote: Wed Jan 13, 2021 9:54 am
Dahl49 wrote: Wed Jan 13, 2021 9:42 am 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
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