Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Vanguard Explorer Mutual Fund dropped nearly 9.45% today. Anyone know why?
Thanks for the great insight!
2 Answers
- Anonymous1 decade agoFavorite Answer
They had a capital gains distribution and dividend paid out. The distributions are approximately equal to the drop.
- 1 decade ago
The fund paid a distribution of $7.744 as of 12/15/2006. This reduced the price per share by that same amount. Depending on if you reinvest those dividends, the difference will either be used to purchase additional shares or be paid out to you in cash.
In either circumstance, the value that you end up with at the end of the day will be the same. Imagine that you have 100 sharse of a fund trading at $10 per share ($1000). The fund pays $2 as dividends. Now you have $2 per share of dividends. The new price of the fund is $2 less, ($8 or $800 total). The other $200 purchases more shares at $8 per share.
In that case, you would have 125 shares of $8 each.
Check into your account at Vanguard. The numbers should add up just like that.
