2

I've seen this occur numerous times in my IRAs. In the transaction section of my Fidelity IRA, it shows a line item Reinvestment XXX with a dollar amount. Clicking the details will display the reinvested shares and the price.

However the amount Fidelity shows does not match what I compute using my calculator.

A specific example:

10/01/2015 REINVESTMENT ISHARES CORE S&P SMALL-CAP ETF (IJR) (Cash)
     Symbol IJR
     Description    ISHARES CORE S&P SMALL-CAP ETF
     Shares + 0.298
     Price  106.0916
     Amount -$31.59

When I do Start>Run>Calc.exe

.298 * 106.0916 = 31.6152968

As negligible as it is - where does the other .025xx cents go? Is it an implied fee to Fidelity? If so, why is it not reasonably disclosed? Could it just be a rounding issue?

I know it's only two cents - but it's two cents per quarter for-almost-ever and my OCD doesn't like the numbers to not match.

A similar transaction can be noted in Vanguard - so it's not just Fidelity. My wife's 403(b) invests $200 per paycheck (monthly) - and the Vanguard transaction history shows:

10/23/2015  500 Index Fund Inv  Buy 1.044   $191.64 $200.00

Again, by my calculator - 1.044 * 191.64 = $200.07216

5

It is probably a rounding discrepancy. Try doing the math the other way around:

31.59 / 106.0916 = 0.297761556...

. . . which rounds to 0.298. Likewise for your other example, 200 / 191.64 = 1.043623436, which rounds to 1.044.

In general I would take the dollar amount as the starting point, because the divided is paid in dollars. You get $X from the dividend and then you see how many shares you can buy; you don't see the share price and decide to buy 0.298 shares and then figure out how much that costs.

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