Vanguard Total Bond Market Fund Question

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imflyboy
Posts: 106
Joined: Thu Dec 15, 2011 12:55 pm

Vanguard Total Bond Market Fund Question

Post by imflyboy »

I’m currently invested in a Vanguard Institutional Total Bond Market Index Trust….whew that’s a lot of words :) Since I’ve held this fund I’ve not seen any interest payments in the transaction history. Every bond fund I’ve ever owned has shown a monthly interest payment. I assume the payments are reinvested within the fund and the NAV adjusted to reflect the payments. I’ve called the custodian twice and the reps were not very helpful. They didn’t seem to know bonds should pay interest and it was suggested if I wanted a dividend I should invest in the SP500 fund :oops: Additionally, they can’t confirm the yield. And when I compare the holdings in this fund vs TBM on the Vanguard website it appears the holdings are slightly different. Anyone experience this or have an insight?

Thx!
Soon2BXProgrammer
Posts: 2233
Joined: Mon Nov 24, 2014 11:30 pm

Re: Vanguard Total Bond Market Fund Question

Post by Soon2BXProgrammer »

imflyboy wrote: Wed Jun 09, 2021 8:55 pm I’m currently invested in a Vanguard Institutional Total Bond Market Index Trust….whew that’s a lot of words :) Since I’ve held this fund I’ve not seen any interest payments in the transaction history. Every bond fund I’ve ever owned has shown a monthly interest payment. I assume the payments are reinvested within the fund and the NAV adjusted to reflect the payments. I’ve called the custodian twice and the reps were not very helpful. They didn’t seem to know bonds should pay interest and it was suggested if I wanted a dividend I should invest in the SP500 fund :oops: Additionally, they can’t confirm the yield. And when I compare the holdings in this fund vs TBM on the Vanguard website it appears the holdings are slightly different. Anyone experience this or have an insight?

Thx!
I'm assuming you hold it in a 401k? (or some other qualified plan?) It is common in a qualified plan to not see dividends or interest payments, because they just show up in the NAV of the fund. This is different then funds you can buy in an IRA or taxable brokerage.
tonyclifton
Posts: 217
Joined: Sat Feb 08, 2020 5:25 pm

Re: Vanguard Total Bond Market Fund Question

Post by tonyclifton »

Are you referring to VBMPX? If so, we have this in a 457b account and there is definitely a dividend that is paid out and then reinvested. It shows as a dividend in the 457b account history. Here is when the dividends were paid out:
https://investor.vanguard.com/mutual-fu ... ions/vbmpx
Topic Author
imflyboy
Posts: 106
Joined: Thu Dec 15, 2011 12:55 pm

Re: Vanguard Total Bond Market Fund Question

Post by imflyboy »

Yep, in a qualified plan. In my 401, however, (with a different custodian) I do see a monthly interest payment. This is what I assumed but wanted to make sure! Thx!
runninginvestor
Posts: 510
Joined: Tue Sep 08, 2020 8:00 pm

Re: Vanguard Total Bond Market Fund Question

Post by runninginvestor »

You say it's a trust, so it's likely a Collective Investment Trust. There's a decent wiki page that may help.

https://www.bogleheads.org/wiki/Collect ... ent_Trusts

"Dividend reinvestment. A CIT does not make dividend distributions. Dividends are added and accumulate in the net asset value of a CIT share."
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