churning usually refers to turnover. The turnover for this fund is 2.2% which means just 2.2% of the holdings turn over, over the course of an entire year. That's pretty low when you compare that to actively managed funds. I'll let you research that yourself.I'm trying to understand how much an index fund like VTSAX (Vanguard Total US Stock Market) churns each year. Meaning, if all I do is buy and hold that fund, how much "realized gain" is generated by the fund despite me doing nothing other than holding it?
Once I've got that figured out, how would I go back and look up the distributions to know how many taxable gains the fund is generating simply by buying and selling shares to keep a good match with the index? How do I know which are qualified and non-qualified enough to know if I'm applying income tax to gain or capital gains. Or are they all taxed at income bracket rate considering that, even if they were charged at capital gains rate, they would be short term?
Regarding the realized gains there's a very good wiki page about this. The link is here:
https://www.bogleheads.org/wiki/Vanguar ... nting_data
notice two things of note:
1. the fund hasn't distributed a gain in 24 years.
2. the fund still has $23 billion worth of carryover losses.
so i don't think you have to worry about gains being generated in this fund for quite some time.
does that help at all?Net flows into the fund have the following effects:
Constant inflows allow a fund manager to purchase a wide range of price lots for shares. The manager can select high basis shares when forced to sell a stock (this may realize a loss). The manager can also select low basis shares when redeeming a stock in-kind (a non-taxable transaction that can remove an unrealized gain out of the portfolio.)
A large and growing net asset base serves to diffuse any realized capital gains across a large base of shareholders and reduces the per share gain distribution. Large outflows have the opposite effect; any gains realized are spread across a smaller asset base and result in higher per share distributed gains.
Statistics: Posted by arcticpineapplecorp. — Tue Aug 27, 2024 7:33 pm — Replies 9 — Views 467