Investing - Theory, News & General • Question about very low capital gains in Schwab target date index funds

I have been wondering about this, too.

Here's the distribution from Morningstar

Fidelity Freedom Index 2050


Schwab Target Index 2050


Vanguard Target Index 2050


What's interesting is that both Fidelity and Vanguard distributed capital gains, but Schwab has not. Vanguard shows an extra large distribution on 2021, which I believe was due to them merging target funds resulting in a lawsuit. The question is which one is still more tax efficient? How do you calculate distribution percent return, is it the distribution / NAV? If this is the case

Fidelity = 0.0040/21.17 + 0.4460/23.28 = 1.93%
Schwab = 0.3313/16.61 = 1.99%
Vanguard = 0.9844/44.52 = 2.21%

It seems that they are all about the same on distribution.

Statistics: Posted by gavinsiu — Tue Dec 03, 2024 9:25 am — Replies 9 — Views 913

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