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Bond mutual funds analysis act 2 !!



  • > I tried VBILX, for YTD old M* chart was close at 9.05, new chart 8.77%, real number 9.06
    Real number? According to whom? Morningstar? That's a secondary source.

    >Chuck says VBILV 9.04 YTD I say I can live with .04, .05, or .06 !

    Consider chucking Chuck.
    That's a tertiary source: "Except as noted below, all data provided by Morningstar, Inc."
    (Footnote on Chuck's page for VBILX)

    Primary source, Vanguard: 9.05% YTD (Recent investment returns table, YTD as of 12/4/20 column)

    Of course Vanguard is correct. You can prove it yourself.

    Start with 100 shares purchased on 12/31/2019. Calculate the dollar amount of the divs paid each month and how many shares that buys based on the end of month reinvestment price. (Vanguard provides a table with all this data here.) Add those shares, rinse and repeat. After 11 months (divs for Jan-Nov), you'll have 102.107 shares.

    Add to the current (12/4/20) value of those shares the accrued divs for four days. One can approximate that by taking: 4/30 x Nov div/share x 102.107 shares = 28¢

    The increase in value (from $1181.00 to $1287.85) , is 9.05% of the original value.
    Per share	Record/		Reinv	Bought	Total 	Share		Accrued
    dividend reinvest price Shares Shares Value Divs
    (Now) $12.61 $1,287.57 $0.284
    $0.020830 11/30/2020 $12.66 0.168 102.107
    $0.021910 10/30/2020 $12.55 0.178 101.939
    $0.021760 9/30/2020 $12.65 0.175 101.761
    $0.022890 8/31/2020 $12.66 0.183 101.586
    $0.023520 7/31/2020 $12.75 0.187 101.403
    $0.023540 6/30/2020 $12.59 0.189 101.216
    $0.024980 5/29/2020 $12.47 0.202 101.027
    $0.024320 4/30/2020 $12.34 0.198 100.825
    $0.025300 3/31/2020 $12.10 0.210 100.627
    $0.024390 2/28/2020 $12.30 0.199 100.417
    $0.026390 1/31/2020 $12.09 0.218 100.218
    $0.026630 12/31/2019 $11.81 100.000 100.000 $1,181.00
    (Share value + accrued divs - original purchase) / original purchase = 9.05%

    BTW, the new chart shows 9.0584% from 12/31/19 to 12/4/20. Take a closer look.

  • Does M* calculate fund metrics (for example risk and volatility measures or value and growth measures) themselves or is data provided by a third party?
  • edited December 2020

    Does M* calculate fund metrics (for example risk and volatility measures or value and growth measures) themselves or is data provided by a third party?

    M* site shows you several risk metrics see (this) or the old site was easier where you can compare several funds see (this)
    PV is a great site with many metric and you can run different scenarios and trading dates, see (this)
  • FD, I am asking you where the data originates?
  • msf
    edited December 2020
    M* calculates most of the fund metrics itself (you can find various methodology papers for their different formulae, e.g. Style Box Methodology, Morningstar Fixed-Income Style Box, and Credit Quality, Bond Fund Classification, and Performance).

    For some calculations, it relies upon the first party, i.e. numbers are calculated by the funds themselves. For example,
    Morningstar asks fund companies to calculate and send average effective duration (also known as “option-adjusted duration”) for each of their fixed-income or allocation funds.
    Morningstar Fixed-Income Style Box Methodology, p. 4

    Likewise, it gets SEC yields from the funds themselves.

    As to third parties, it relies upon NRSROs for bond ratings (which the funds roll up into histograms of their portfolios). M* then uses this data and its own formulae to calculate average credit rating for a fund.

    It uses third party estimates of projected EPS for stock, though "When a third party estimate ... is not available, Morningstar calculates a projection ... based on historical growth rates up through the most recent year". This in turn is used in evaluating where on the value/growth spectrum a stock, and ultimately a fund, sits.
    Morningstar Style Box Methodology, p.8
  • Thank you. I located the methodolgy page. I wish they would do a methodolgy on the methodology of fund surveys.
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