Yields on Vanguard ETFs VDY and VRE
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Thread: Yields on Vanguard ETFs VDY and VRE

  1. #1
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    Yields on Vanguard ETFs VDY and VRE

    Anyone have Vanguard ETFs that are new last year VDY or VRE? I hope someone can make sense of the yields for me.

    So far the yields yields seem too low on these the funds. VDY has been distributing at a rate of about 2.5%, but it's index shows 4.47%.
    And VRE index shows a yield of 4.75% but it's not paying out at that rate (more like 2%).
    Anyone else noticing this? Will the yields start to match by the end of the year because they're less than a year old?
    They've got some catching up to do! Vanguard's low MER is nice, but I'd like the full yield!
    I asked this in an earlier thread but I didn't see that anyone responded, so I'll start a new thread.

    Any thoughts?


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    Senior Member pwm's Avatar
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    Very good question dime. Glad to see someone else has the same concern.

    I hold VDY, and I am equally perplexed. The yield on the underlying index would suggest that the distributions should be much higher. I was assuming the distributions would improve as the fund matures, or that perhaps there will be a "catch up" distribution at year end.

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    I've been wondering that about Vanguard funds for a while. Everyone seems to love them, but for a lot of what I want to hold, I can pay 1/2% more in MER at iShares and get 2% more yield...

    In general though, I've noticed Vanguard tends to give mediocre dividends throughout the year and then a big one in December.

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    I have VRE and I'm wondering the same thing. I don't know why it pays so little. I'm hoping it will catch up as it matures, since it's less than a year old right now.

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    The place to go is the audited annual financial statements, to see exactly what's going on inside the fund. The income statement portion will tell you exactly how much dividend income the fund generated, and where that income went.

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    Yeah, unfortunately they cover the period from Nov 2 - Dec 31, so it's not exactly enlightening.

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    Why don't you just call Vanguard and ask them??

    Go on their Canadian website.....I'm sure a customer call number is on there.

    I have also noticed this about the seemingly low yields, but since I'm not buying their Can ETF's right now, I didnt take it further to find out why .

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    Oh the funds are that new? Yeah then the annual statement won't help.

    The semi-annual (interim) financial statements will be available near the end of August, but I don't think it's going to have the info you need. The annual statement has the important "Distributions to unitholders" section but the interim doesn't seem to.

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    The only phone number I could find on their site was under a section for Financial Advisors. I guess I could call it anyways.

  10. #10
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    I called. They told me it's because it's starting up, something about cash flows.


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