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Why did the VTRIX Vanguard mutual fund lose almost 10% in the market today???


Why did the VTRIX Vanguard mutual fund lose almost 10% in the market today???

The reason that it fell was due to the large sell-off in the Thai markets yesterday after the government imposed restrictions on foreign investors.

The Thai market fell nearly 15% in one trading day as investors fled the market. The VTRIX, which is an international fund, has nearly 12% of its funds invested in the Asia ex-Japan region that no doubt includes some investment in Thailand (apparent by the sell-off).

The government imposed restrictions such as the requirement to keep money within the Thai monetary system for at least a year. This was done as there were fears that the Thai baht was getting too high, which would hurt Thai exporters as imports become relatively cheaper.

However, after the major sell-off, the government backed off the restrictions so you may see the Thai markets come back some but unfortunately the damage has been done and the confidence in that market has been hurt.

I'm not sure, but if you are just looking at numbers... this is the time of year that most funds post dividends and capital gains.... the share price drops, but if you are actually invested ,you will be given more shares. If you're just looking at numbers it looks like a drop ... The other answer could be right, but that seems like an EXTREME drop... I have a couple of foreign funds and the drops were only 1.5 and 1.7
If you're new to investing and VTRIX is in your holdings check your account in a couple of days, you should see more shares at the lower price.

It may have been partially affected by the problems in Thailand, but the main reason it dropped is because there was a distribution on 12/19/06. See the link below. If you reinvest distributions, you will have more shares at a lower price, but approximately the same amount of money.

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