Timeline for How to interpret stock performance charts "vs S&P 500"
Current License: CC BY-SA 3.0
14 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Sep 8, 2017 at 13:18 | vote | accept | Ryan | ||
| Sep 6, 2017 at 12:35 | history | edited | Ryan | CC BY-SA 3.0 |
minor clarifications
|
| Sep 6, 2017 at 12:12 | history | edited | Ryan | CC BY-SA 3.0 |
added Yahoo chart for extra confusion
|
| Sep 6, 2017 at 11:41 | comment | added | Ryan | @BrenBarn good point, I edited my question to clarify that | |
| Sep 6, 2017 at 11:36 | history | edited | Ryan | CC BY-SA 3.0 |
clarify active vs. passive funds
|
| Sep 6, 2017 at 3:15 | comment | added | BrenBarn | Just a terminological note: index funds are a type of mutual funds (or a type of ETFs). You are not deciding between index funds and mutual funds, but between index funds and actively managed funds. | |
| Sep 5, 2017 at 22:13 | history | tweeted | twitter.com/StackFinance/status/905192279266222080 | ||
| Sep 5, 2017 at 15:47 | answer | added | Ryan | timeline score: 29 | |
| Sep 5, 2017 at 14:01 | comment | added | Ryan | ABALX has a dividend yield of around 1.6%. I can't find anywhere specific in the ABALX prospectus, but I got the idea somewhere that performance reported in a prospectus always assumes reinvestment of dividends (it's a natural thing to do, and it makes them look better as well). Since the S&P 500 doesn't have a prospectus to borrow from, perhaps CNN got lazy and just went with historic stock prices? | |
| Sep 5, 2017 at 13:55 | comment | added | Grade 'Eh' Bacon | It's possible that ABALX simply doesn't pay dividends by default [instead they reinvest all dividends received automatically], thereby meaning that TD is comparing apples to apples, where CNN shows ABALX as including dividend reinvestment, but it shows S&P 500 excluding the impact of dividends. You should find the section on either CNN's site or ABALX itself which discusses how they treat this. | |
| Sep 5, 2017 at 13:52 | comment | added | Ryan | TD Ameritrade advises: "The total return is not adjusted to reflect sales charges or taxes, however it does show actual ongoing fund expenses and assumes the reinvestment of dividends and capital gains." Since both charts agree on the performance of ABALX, I would assume CNN Money does the same. But clearly they interpret S&P 500 performance differently, and I haven't been able to figure out why. | |
| Sep 5, 2017 at 13:19 | comment | added | Grade 'Eh' Bacon | I'm wondering if one of your charts includes the impact of dividends paid (and assumed to be reinvested), and the other includes price only, thus eliminating the benefits of dividends from the comparison. | |
| Sep 5, 2017 at 13:18 | review | First posts | |||
| Sep 5, 2017 at 13:32 | |||||
| Sep 5, 2017 at 13:14 | history | asked | Ryan | CC BY-SA 3.0 |