| Author |
Message |
blu4899
Guest
|
 Posted:
Sun Dec 19, 2004 5:51 am Post subject:
Big drop in some Vanguard funds on Friday |
|
|
Hi,
I hold a few Vanguard funds which are not particularly risky: VEIPX,
VWNFX, VWNDX, VFINX, VEIPX. All of those funds move up and down in the
neighborhood of the major indexes Dow, Nasdaq, and SNP500, rarely ever
more than 0.5% difference from the index movements.
Until this Friday Dec 17. It was not a good day on Wall Street, Dow was
-0.52%, Nasdaq was -0.51%, SNP -0.75%; the big looser of the day was
Pfizer(PFE) with -11%.
On this day VEIPX went down 6.02%, VSEQX down 4.9%, and VWNDX down
2.05%. These are huge drops for these funds and an uncharacteristic
massive difference from the index.
If the Pfizer drop would cause this, the funds must have Pfizer
holdings of 20% or more, which I strongly doubt.
Do you have any explanation or further information about what caused
the drops in these funds?
Thanks,
blu
|
|
| Back to top |
|
 |
Joe Stella
Guest
|
| Posted:
Sun Dec 19, 2004 6:19 am Post subject:
Re: Big drop in some Vanguard funds on Friday |
|
|
On 18 Dec 2004 16:51:55 -0800, "blu4899" <blu4899@netscape.net> wrote:
| Quote: | On this day VEIPX went down 6.02%, VSEQX down 4.9%, and VWNDX down
2.05%. These are huge drops for these funds and an uncharacteristic
massive difference from the index.
|
Most likely these funds paid dividend and/or capital gain
distributions on that day. |
|
| Back to top |
|
|
Elle Navorski
Guest
|
| Posted:
Sun Dec 19, 2004 6:44 am Post subject:
Re: Big drop in some Vanguard funds on Friday |
|
|
See
http://flagship5.vanguard.com/VGApp/hnw/web/corpcontent/vanguardviews/jsp/VanVie
wsNCArticlePublic.jsp?chunk=/freshness/News_and_Views/news_ALL_2004yearenddist_1
2172004_ALL.html
Looks like distributions on all or some of these funds.
"blu4899" <blu4899@netscape.net> wrote
| Quote: | Hi,
I hold a few Vanguard funds which are not particularly risky: VEIPX,
VWNFX, VWNDX, VFINX, VEIPX. All of those funds move up and down in the
neighborhood of the major indexes Dow, Nasdaq, and SNP500, rarely ever
more than 0.5% difference from the index movements.
Until this Friday Dec 17. It was not a good day on Wall Street, Dow was
-0.52%, Nasdaq was -0.51%, SNP -0.75%; the big looser of the day was
Pfizer(PFE) with -11%.
On this day VEIPX went down 6.02%, VSEQX down 4.9%, and VWNDX down
2.05%. These are huge drops for these funds and an uncharacteristic
massive difference from the index.
If the Pfizer drop would cause this, the funds must have Pfizer
holdings of 20% or more, which I strongly doubt.
Do you have any explanation or further information about what caused
the drops in these funds? |
|
|
| Back to top |
|
|
Guest
|
| Posted:
Sun Dec 19, 2004 7:39 am Post subject:
Re: Big drop in some Vanguard funds on Friday |
|
|
On 18 Dec 2004 16:51:55 -0800, "blu4899" <blu4899@netscape.net> wrote:
| Quote: | Hi,
I hold a few Vanguard funds which are not particularly risky: VEIPX,
VWNFX, VWNDX, VFINX, VEIPX. All of those funds move up and down in the
neighborhood of the major indexes Dow, Nasdaq, and SNP500, rarely ever
more than 0.5% difference from the index movements.
Until this Friday Dec 17. It was not a good day on Wall Street, Dow was
-0.52%, Nasdaq was -0.51%, SNP -0.75%; the big looser of the day was
Pfizer(PFE) with -11%.
On this day VEIPX went down 6.02%, VSEQX down 4.9%, and VWNDX down
2.05%. These are huge drops for these funds and an uncharacteristic
massive difference from the index.
If the Pfizer drop would cause this, the funds must have Pfizer
holdings of 20% or more, which I strongly doubt.
Do you have any explanation or further information about what caused
the drops in these funds?
Thanks,
blu
|
Did you check to see if they paid a dividend? |
|
| Back to top |
|
|
Ed
Guest
|
| Posted:
Sun Dec 19, 2004 1:26 pm Post subject:
Re: Big drop in some Vanguard funds on Friday |
|
|
"blu4899" <blu4899@netscape.net> wrote
| Quote: | Do you have any explanation or further information about what caused
the drops in these funds?
|
The information is in the prospectus, it's also on their website, and it's
available by phone.
This time of year always amazes me. It's not that so many are taken by
surprise at distribution time, it's that so many are putting money into
investments they don't understand.
Another popular misconception is that reinvestment of the distribution is
tax free in a taxable account because the shareholder didn't take the money.
One more. A question I have seen asked a lot this year is "I have an IRA or
a 401k, should I wait until after the distribution before buying a fund?" |
|
| Back to top |
|
|
Brent D. Gardner, ChFC
Guest
|
| Posted:
Tue Dec 21, 2004 6:04 am Post subject:
Re: Big drop in some Vanguard funds on Friday |
|
|
"Ed" <friday@fishinthe.net> wrote in message
news:10saeq7t0nm6h16@corp.supernews.com...
| Quote: | The information is in the prospectus, it's also on their website, and it's
available by phone.
This time of year always amazes me. It's not that so many are taken by
surprise at distribution time, it's that so many are putting money into
investments they don't understand.
Another popular misconception is that reinvestment of the distribution is
tax free in a taxable account because the shareholder didn't take the
money.
One more. A question I have seen asked a lot this year is "I have an IRA
or a 401k, should I wait until after the distribution before buying a
fund?"
|
What you're talking about is the Job Security Act for financial advisors,
accountants, and attorneys. =)
Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/
http://www.topgunproducers.com/
Si vis pacem para bellum!
"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships
The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry. |
|
| Back to top |
|
|
evankathy
Joined: 20 Dec 2005
Posts: 1
|
| Posted:
Tue Dec 20, 2005 4:05 am Post subject:
Forgive my ignorance |
|
|
| I saw the same big drop in VSEQX and figured it was a dividend payout, but this is what I don't understand: My dividend payout amounted to around $150, but the loss from the drop in price was about $1200. Why such a difference? |
|
| Back to top |
|
|
|
|
|
|
FAQ
Memberlist
Register
Profile
Log in to check your private messages
Log in
