Question

# A year ago, the Vanguard Consumer Staples Index Fund (VCSAX) was being quoted at a NAV...

A year ago, the Vanguard Consumer Staples Index Fund (VCSAX) was being quoted at a NAV of \$51.02 and an offer price of \$55.76. Today, it’s being quoted at a NAV of \$62.36 and an offer of \$65.54. What is the percent holding period return on this front-load fund, given that it was purchased a year ago and that its dividends and capital gains distributions over the year have totaled \$0.03 per share?

The Vanguard Consumer Staples Index Fund is a front-load fund. so, to purchase shares in the this front-load fund, you have to pat some fee up-front like sales commissions etc. so cost of purchasing share in this fund will be higher than its NAV. that higher price is offer price of \$55.76.

but return by selling or holding the shares you will get, will be on NAV only.

percent holding period return = [(NAV after one year + dividends and capital gains distributions)/cost of share purchased] - 1

percent holding period return = [(\$62.36 + \$0.03)/\$55.76] - 1 = (\$62.39‬/\$55.76) - 1 = 1.1189 - 1 = 0.1189 or 11.89%

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