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I clicked 'performance' on that page and it says 1.5% over the last five years. Am I reading it wrong?
by evmar 8y ago
I clicked 'performance' on that page and it says 1.5% over the last five years. Am I reading it wrong?
- all_blue_chucks 8y agoLook at the "SEC yield." That's what it pays going forward. Returns were lower over the past five years because the Fed had lowered rates to stimulate the economy.
- kgwgk 8y agoThe yield is only part of the return, one has to consider also the change in price. If interest rates go up prices will go down and the actual return will be lower than the yield. Over the last 12 months, the price of the VCSH fund is down more than 2%. This offsets the dividends paid with the coupons received and results in flat performance.
- platz 8y agodoes 'performance' include dividends?
- CydeWeys 8y agoYes. This is a marketing website for Vanguard, so of course they want to list the highest return possible, and dividends definitely do count in performance.
- jermaustin1 8y agoThat's the average annual performance. Interest rates only started climbing over the last couple of years.