In-kind redemption gains are included as gains in this statistic. If realized losses are higher than realized gains, a fund can "carry forward" these excess losses to offset future gains. Realized losses can be used to offset realized gains in an attempt to reduce taxable gains. The capital gains/losses are "realized" by the fund, and any distributions to the shareholder as a result of realized gains (adjusted for any realized losses) are taxable during the tax year in which the security was sold. Realized gain/loss A realized capital gain/loss is an increase (or decrease) in the value of a security that is "real" because the security has been sold by the portfolio manager. Net sales/redemptions This statistic reveals whether investors are net buyers or sellers of the fund. Note: If the spreadsheet is blank, select a different sheet, then back to that sheet. ![]() ![]() (View Google Spreadsheet in browser, then File -> Download as to download the file.) spreadsheet shows the data in percentage of total assets form. Any loss carryovers a fund possesses can be used to offset future realized gains. The level of unrealized gains and carryover realized losses in a fund: A fund which defers gains realization accumulates unrealized appreciation, which when distributed, will be taxed thus the unrealized gain/loss figure shows the potential gain (or loss) that would be realized if the portfolio was to be entirely liquidated. Large outflows have the opposite effect any gains realized are spread across a smaller asset base and result in higher per share distributed gains. A large and growing net asset base serves to diffuse any realized capital gains across a large base of shareholders and reduces the per share gain distribution.The manager can also select low basis shares when redeeming a stock in-kind (a non-taxable transaction that can remove an unrealized gain out of the portfolio.) The manager can select high basis shares when forced to sell a stock (this may realize a loss). Constant inflows allow a fund manager to purchase a wide range of price lots for shares.Net flows into the fund have the following effects: Similarly, fund shareholders' sales flows have major effects on a fund’s distribution tendencies. Single digit annual fund turnover percentages result in a low rate of realized gains. Turnover: The rate at which a fund manager sells securities within the fund has a major effect on potential gains realization. The accounting figures and associated ratios (tables 3 and 4) can help one visualize some of the major determinants of a fund’s tendency to distribute taxable gains. FY 2001 - The fund added ETF shares on.FY 2005 - The fund made a change of benchmark on, moving from the Dow Jones Wilshire 5000 Index to the MSCI U.S. ![]() Broad Market Index to the CRSP US Total Market Index. FY 2013 - The fund made a change of benchmark on moving from the MSCI U.S.Vanguard Total Stock Market Index Fund Tax Distributions In the table below, the transition year of index change is marked in red. The fund has changed tracking indexes twice in its history. Qualified dividends are taxed at lower capital gains tax rates. In 2013 the fund distributed less than 100% qualified dividends for the first time since the start of the qualified dividend tax regime. The fund has not distributed a gain since 2001, a period marked by two bear markets, and which saw the introduction of an ETF share class in the fund. We can see that the fund distributed modest levels of capital gains during its first decade of existence, a period which coincided with a long bull market. The following table provides a view of the fund's historical distributions expressed in terms of yields. These figures highlight the level of a fund's tax liabilities.īecause both manager turnover of securities inside the portfolio and investor turnover of fund shares can affect the level of gains realization, a third table provides historical turnover ratios. ![]() The second table provides a database of the fund's accounting figures: the annual level of realized and distributed gains its level of unrealized gains and loss carryforwards as well as the annual in-kind redemption gains the fund has realized. The first table also provides the historical distribution of qualified dividends. The following tables provide long term data on the fund's history of both dividend and capital gains distributions. Historical gains distributions : Recently low The table below summarizes the fund's relation to a number of tax factors. The fund is also one of the underlying fund portfolios for the Vanguard series of Target Retirement Funds and Life Strategy Funds. 1) as a core holding in a simple three-fund or four-fund portfolio. The Vanguard Total Stock Market Index Fund is a very suitable candidate for placement in taxable accounts.
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