Vanguard Explorer Mutual Fund dropped nearly 9.45% today. Anyone know why?

Thanks for the great insight!

They had a capital gains distribution and dividend paid out. The distributions are approximately equal to the drop.

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.

Tags

　　Online Investment 　　Online Business 　　Offshore Investment 　　Mutual Fund 　　Money Market Funds 　　Money Investment 　　Managed Fund 　　Make Money

Related information

Todays Scenario Mutual fund is better or buying equity, which option to select?

The first thing you must do is define your goals. Then find the right investment that will help you accomplish your goals. Once you make that investment, stick with it.

...

What is mutual fund accounting?

Mutual Fund is a Fund established in the form of a trust by a sponsor to raise money by the trustees through the sale of units to the public under one or more schemes for investing in securities in...

When do mutual fund prices get updated?

It depends upon the fund. Some price hourly, however 99% of firms price their funds at the close of business. When they release the information is specific to the firm and when it appears is spec...

What is mutual fund turnover?

It's how much/often they buy/sell each year. Depending on what kind of account you have it in and what your tax rate is, a low turnover fund could be better since it would throw off less in c...

What prossces to join mutual fund selles and distbution. ?

You need to get certified and registered at AMFI for selling and distributing the mutual funds. visit www.amfiindia.com/showhtml.asp?page=ce...

...

What is the difference between a mutual fund an index fund?

Mutual fund is a group of different stocks, usually 100 or more. An index fund is all the stocks in something like the Dow Jones 30, or it could all the stocks on the NYSE, or all the stocks in th...

Any good mutual fund ideas, i want to get one but need help, do you know any good ones. thanks?

That all depends on your needs. If you don't need to touch money for a while, put more towards higher growth international funds and equity/stock funds etc.. If you need your money to be in so...

For newbie: Mutual Fund vs Roth IRA, which one is better and why?

A Roth can be a mutual fund. Are you asking about a Roth vs. a non retirement investment or a Roth vs. a traditioanl IRA?

...