Why are Vanguard Managed Payout Funds and Vanguard REIT Index Fund different from other funds?
These funds often have returns of capital. A return of capital is a return on your investment in the fund that reduces your cost basis. For these funds, the amount that represents a return of capital is calculated in January and February for the prior year. We will provide the most current information throughout the year on these funds; however, the calculation is incomplete until the final return of capital has been factored into the distribution amounts. See each fund’s prospectus for more information about return of capital.
