Yes. That percent is called the distribution yield.So it appears as if when I go to my bond holdings on line with my PAS reports and look at the distributions, they express them as a percent. So i guess this is a percent return on what the value of my fund holdings are at the time the calculation is made. Am I understanding this correctly?For a bond fund, talk of coupons is probably just confusing.Can someone provide a simple explanation (without complicated charts) what I am earning on my bond funds? I have owned then for awhile. When I look at the sheet for each fund it shows the coupon, for example 3.0%. So am I earning 3% of the current NAV of the fund or 3% of what I originally paid for the fund? Please keep it simple as I am not an experienced investor. Thanks.
The coupons of the bonds the fund holds don't directly tell you what your income will be from the fund. Partly because what bonds the fund holds, and in what proportion, is always changing.
So as per the explanations, above, it's better to focus on the distributions the fund makes.
While there is no standard definition of distribution yield enforced by the SEC, Vanguard computes it like this.
The fund's current monthly income dividend per share, annualized by dividing by the number of days in the month and multiplying by 365, and shown as a percentage of the fund's average net asset value (NAV) during the month.
Statistics: Posted by IDpilot — Sun May 05, 2024 8:01 am — Replies 21 — Views 1211