Author Topic: bond funds -- how to interpret yield and appreciation?  (Read 976 times)

StacheOfInnerPeace

  • 5 O'Clock Shadow
  • *
  • Posts: 11
bond funds -- how to interpret yield and appreciation?
« on: April 21, 2016, 04:29:38 PM »
This is probably a pretty simple topic for folks here, but I am still uncertain:

How does one interpret the reported growth in a bond fund?

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=vwitx

Is the yield 2.82% calculated into the growth graph?

Thanks,
SoIP

Vagabond76

  • Stubble
  • **
  • Posts: 226
  • Age: 43
  • Location: Destin, FL
Re: bond funds -- how to interpret yield and appreciation?
« Reply #1 on: April 21, 2016, 04:48:17 PM »
The yield is not factored into the price. You can take the interest payments in cash or reinvested in new shares. The "growth of $10,000" charts will show the return with interest payments reinvested.

Heckler

  • Handlebar Stache
  • *****
  • Posts: 1346
« Last Edit: April 22, 2016, 08:16:01 AM by Heckler »