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Vanguards estimates

When looking at retirement funds, investor & institutional , why the large difference in % dividend ?
VITVX 2.87% VS VTXVX 9.75% 2015 year.

VITWX 1.93 % VS VTWNX 13.94% 2020 year

Thanks, Derf

Comments

  • edited November 16
    Those large differences in yearend distributions do look strange.

    The VG TDF and VG Institutional TDF series are distinct (i.e., not classes of same portfolios), but they have similar glide-paths and portfolio managements except for different ERs, minimums and client bases. I looked at turnovers, and strangely, Institutional TDF have higher turnover.

    My guess is that large difference in yearend distributions may be related to the merger of regular VG TDF and VG Institutional TDF by 02/2022. Their tax-cost ratios may be different. Unfortunately, the news related to the merger is silent on this aspect.

    https://pressroom.vanguard.com/news/Press-Release-Vanguard-to-Lower-Investor-Costs-by-an-Estimated-190M-Through-Enhancements-to-TRFs-092821.html
  • @yogibearbull : Thank you for the reply. I looked @ VG ,but couldn't find any info.
  • @derf, it is kind sad that VG is touting only the lower ER overall and has not mentioned tax aspects of this merger. May be some holders of the affected funds should call VG about tax details and why their yearend CGs are different.
  • I just sent them off a why question & await their reply.
    Stay tuned, Derf
  • Good evening : VG reply came back today Tuesday. Basically stated difference in dividend % was due to ER. YTD returns were close , difference .09% .
    ER difference .04 % .
    @yogibearbull : Read your link last night & will look at it again. Something smells fishy as I don't see how the BIG difference in dividends, VG wouldn't be trying to pull a fast one ?
    Has anyone had this happen to a fund when they get merged ?
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