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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?


To: sea_biscuit who wrote (3223)2/5/1998 9:47:00 PM
From: Investor2  Respond to of 42834
 
TO ALL, RE: Capital Gains in Index Funds

I just went over to Vanguard.com to see the magnitude of the capital gains issue that we've been debating. The unrealized capital gains, as a percent of the cost, as of June 30, 1997 are:

Index 500 Fund - 53.9%
Extended Market Index Fund - 39%
Index Growth - 28.4%
Index Value - 29.2%
Total Market Index - 41.3%
Small Cap Index - 25.1%

Feel free to double check my calculations.

Best wishes,

I2

P.S., It would be interesting to see exactly how large the built-in capital gain is for some managed funds.