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Unusual drop in Vanguard 2020 target retirement fund (VTWNX) today

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Unusual drop in Vanguard 2020 target retirement fund (VTWNX) today

Old 12-30-2020, 07:07 PM
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Default Unusual drop in Vanguard 2020 target retirement fund (VTWNX) today

Looking for a reason as to why this fund dropped over 5% today given there was nothing (that I'm aware of) that occurred in today's financial markets that would've caused a drop this large to occur. Naturally I have a contact out to my financial advisor to inquire about this, but I thought someone on this forum might know. Seems really odd. Did something unusual happen in the bond market today?



Old 12-30-2020, 07:14 PM
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Dividends and gains payout.
Old 12-30-2020, 07:15 PM
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You might want to check to see if they did their end of year capital gains distribution.
Old 12-30-2020, 07:18 PM
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Assuming you own this....check and see if your share count went up. Fund likely paid capital gains today.
Old 12-30-2020, 07:29 PM
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Originally Posted by olyveoil View Post
Assuming you own this....check and see if your share count went up. Fund likely paid capital gains today.
I do own it, but I was trying to determine why the price per share value declined so significantly today.
Old 12-30-2020, 07:31 PM
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Originally Posted by Brad1 View Post
I do own it, but I was trying to determine why the price per share value declined so significantly today.
Did your number of shares owned go up by a corresponding percentage? 5ish percent?
Old 12-30-2020, 07:32 PM
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Originally Posted by Brad1 View Post
I do own it, but I was trying to determine why the price per share value declined so significantly today.
betting capital gains.
Betting you got a credit stated as dividends today.
Nav went down, but your share count went up.
Check your online activity section.
Old 12-30-2020, 07:32 PM
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Originally Posted by Brad1 View Post
I do own it, but I was trying to determine why the price per share value declined so significantly today.
How did it affect the total value of your holdings in that fund.
Old 12-30-2020, 07:37 PM
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Always happens at end of year. It is a wash. Just end of year distributions. Account value stays the same.
Old 12-30-2020, 08:11 PM
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Not a wash if you hold a fund that has big distributions in a taxable account. You get a nice tax bill
Old 12-30-2020, 08:22 PM
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Look back at December 2019. It did the same thing. Sounds like distributions/rebalance of shares.
Old 12-31-2020, 07:28 AM
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shares wont go up unless you reinvest div gains etc..,,you have an option..
Old 12-31-2020, 07:54 AM
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Originally Posted by joe.giuliano View Post
Dividends and gains payout.
That was it.

Thanks Joe !!!
Old 12-31-2020, 07:57 AM
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Originally Posted by My Turn View Post
Not a wash if you hold a fund that has big distributions in a taxable account. You get a nice tax bill
This is why harvesting losses earlier in the year was an opportunity.

Vanguard just did it's capital gains distribution in other funds. You should see a purchase of additional shares in the same amount as the dividend, assuming you are reinvesting dividends.
Old 12-31-2020, 08:21 AM
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Originally Posted by Sixstring View Post
Always happens at end of year. It is a wash. Just end of year distributions. Account value stays the same.
Yes. Many Vanguard funds do their last distribution right at year end.
Old 12-31-2020, 10:22 AM
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Originally Posted by My Turn View Post
Not a wash if you hold a fund that has big distributions in a taxable account. You get a nice tax bill
Either or...you can pay now in a taxable account or later in a retirement account when you start cashing out. The government will always get their tax one way or the other.
Old 12-31-2020, 11:28 AM
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Originally Posted by Sixstring View Post
Always happens at end of year. It is a wash. Just end of year distributions. Account value stays the same.
$20 bet this is exactly what happened. Been watching this event with my funds for years, especially those funds that only pay gains and dividends once a year...at the end of the year. Some pay out quarterly, some pay out monthly, but the ones that only pay out at the end of the year, will have the biggest (corresponding) price drop.
Old 12-31-2020, 11:34 AM
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Originally Posted by My Turn View Post
Not a wash if you hold a fund that has big distributions in a taxable account. You get a nice tax bill
You always get a tax bill either on capital gains or dividends or retirement fund withdrawals.
only way not to get a tax bill, is to own tax free bonds or funds.
Old 12-31-2020, 11:46 AM
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Originally Posted by chuck34 View Post
You always get a tax bill either on capital gains or dividends or retirement fund withdrawals.
only way not to get a tax bill, is to own tax free bonds or funds.
And even with muni funds, they can have capital gain distributions. Owning tax efficient funds/ETF's can help too.
Old 12-31-2020, 03:03 PM
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Lol December is when cap gains and dividends hit. You get say a 2.5% dividend in shares and nav drops by 2.5%....its a wash.

Once had a friend call me. Her screens said her wells MF had dropped by 1.2 million over night. Now mind you it was only a 2,000 dollar position. Learn to ignore mf daily changes especially target date fubds

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