Calculating returns of Vanguard funds ?
How does one calculate the returns of any vanguard fund For ex - VTSAX has grown 8% in stock price in last year but yearly return is advertised at 11%. Do they assume the dividend re invested ? Any other catch to find a good vanguard fund ?
I mean dividend is return
It calculates total gain/ total current asset. This is very inaccurate because I’ve been adding in more money over time..
What happens when you want to take all the money from vanguard. Ex- you’ve put 100k two years ago and now you have 120k. You take them all? You need to pay something? How much you cash you have if your vanguard account has 120?
If you sell your funds, you can transfer out cash. Is that the question?
According to https://investor.vanguard.com/mutual-funds/profile/performance/vtsax the previous 10 years have shown 10.78% per year. Is that what you mean by 11% “advertised”? As with all investments, past performance does not indicate anything about future results. This fund simply tracks the US domestic total stock market. And it’s a good fund for doing so. But there is no 11% “advertised” return going forward. And if you look at the last 18 years then it returned 6.86% annually, because that actually includes the 2008 recession and some slower years of the 2000s. Yes the numbers include reinvestment of dividends and capital gains, as stated on their website. I don’t know where you got 8%. Yahoo finance shows me 16.19% from the last 12 months for VTSAX. It shows 7.37% year to date. So do you mean YTD is 8% then? That’s only a little over 7 months so in that respect it’s more or less on track for a “normal” year, compared to the last ten. But again, it just tracks the market, and the market fluctuates and has good years and bad years.
One does not. One has no name.