VASVX down 8.5% today!

[Refirement]

On a day before the tax cut and the major indexes are sky high, this fund drops 8.5%!  WTH. I can’t seem to find any reason for it.  I have 500k in this fund.  Any ideas?  I’ll be calling vanguard in the morning. 

[Heckler]

Straight off thier site:

Because of the size and characteristics of the stocks the fund holds, performance can vary significantly from that of the broad stock market. The fund is typically concentrated in a small number of stocks and, therefore, can be subject to significant volatility. Investors in this fund should have a long-term horizon and may consider the fund complementary to an already diversified portfolio.

[daverobev]

On a day before the tax cut and the major indexes are sky high, this fund drops 8.5%!  WTH. I can’t seem to find any reason for it.  I have 500k in this fund.  Any ideas?  I’ll be calling vanguard in the morning.

https://www.bogleheads.org/forum/viewtopic.php?t=128572 links to

https://personal.vanguard.com/us/funds/snapshot?FundId=0934&FundIntExt=INT&ps_disable_redirect=true#tab=4

They 'gave out' $2.54 in long term capital gains today. The number of units you own will have gone up to compensate.

[daverobev]

Straight off thier site:

Because of the size and characteristics of the stocks the fund holds, performance can vary significantly from that of the broad stock market. The fund is typically concentrated in a small number of stocks and, therefore, can be subject to significant volatility. Investors in this fund should have a long-term horizon and may consider the fund complementary to an already diversified portfolio.

Or it could be the dividend and capital gains distribution and reinvestment that happened today.

[Refirement]

Oh, never mind.  Thanks!

[Refirement]

The additional shares were put into my account today... was very surprised it didn’t happen on the same day.  Thanks again for your help!

[DaveSch]

I've taken my taxable distributions in cash for the last 15 years or so. This doesn't make any difference in the taxable event. What it does is allows me to take the money from all my taxable distributions and rebalance in to future investments. It helps me to steady my stocks/bonds asset allocation.

Now that I am closer to the end, I also take my IRA and Roth distributions in cash, but leave them in the IRA or Roth and invest these proceeds to also help balance my portfolio.

All this helps me to do a slow rebalance in to less risky funds as I age. It also keeps the paper work way down when I want to sell one of my taxable funds. No little yearly bits and pieces. Just the main purchases need to be accounted for.

Dave

[Refirement]

Thanks Dave.  Makes sense.