🚨Reminder: On Friday, I recommended trades in four of the IVA Portfolios. 🚨
A mini-capital gains distribution season is fast approaching. Here’s what you need to know.
Every year, Vanguard, like all its mutual fund and ETF industry competitors, must pay out interest, income and trading profits (called capital gains) accumulated over the year.
You'll receive a distribution if you own a fund on its record date. As a fund shareholder, you are taxed on the capital gains you receive—even if you automatically reinvest the distribution into the fund. (Though you don’t have to worry about this for funds you hold in retirement accounts like a 401(k) or IRA.)
You can read more about capital gains in my Capital Gains 101 and 102 articles.
Capital gains are typically paid out in December. However, some Vanguard funds have gains or income earned last year that were not accounted for or distributed in December 2024. These funds will pay out “supplemental” distributions before the end of March to clear their books.
Expected Supplemental Distributions
In the table below, you can find the Vanguard funds planning to make supplemental distributions. If you don’t see a fund on the list, it isn’t making a capital gain distribution this month.