Author Topic: How is VTSAX share price set?  (Read 302 times)

jamesbond007

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How is VTSAX share price set?
« on: September 14, 2020, 02:48:17 PM »
I understand that this is market cap weighted fund but how is the individual share priced? I am sure there are supply demand dynamics going on here, but what I am trying to understand is that the price has not moved a cent all day today and has been at 82.30. Even the charts are not showing progression in time (Not flat). They just stopped. What is going on here? Never seen anything like this.

terran

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Re: How is VTSAX share price set?
« Reply #1 on: September 14, 2020, 03:40:15 PM »
Mutual funds are only priced at the end of a trading day, which is also when all purchases and sales from that day (and any preceding non-trading day) are executed. If you want to see what VTSAX will do (on a percentage basis) you can look at what the ETF equivalent, VTI, is doing during the day.

secondcor521

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Re: How is VTSAX share price set?
« Reply #2 on: September 14, 2020, 05:54:06 PM »
Also something to note is that Vanguard typically updates their mutual fund prices about two hours after the market closes, so about 6pm EST.  So on a day like today, if you check VTSAX's price an hour after close, it will still show Friday's price, which can be confusing to newcomers on days when the market's results differ a lot between, in this case, last Friday and today.

For the mechanics of pricing of a mutual fund, you can read up on net asset value (NAV) and how it's calculated.

jamesbond007

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Re: How is VTSAX share price set?
« Reply #3 on: September 14, 2020, 06:25:26 PM »
Also something to note is that Vanguard typically updates their mutual fund prices about two hours after the market closes, so about 6pm EST.  So on a day like today, if you check VTSAX's price an hour after close, it will still show Friday's price, which can be confusing to newcomers on days when the market's results differ a lot between, in this case, last Friday and today.

For the mechanics of pricing of a mutual fund, you can read up on net asset value (NAV) and how it's calculated.

Thanks for the clarification.