The S&P/ASX 200 Index (ASX: XJO) is see-sawing today in what's been a rather quiet day on the ASX as many states enjoy a public holiday.
After climbing by as much as 0.5% in morning trade, the ASX 200 has since given back these gains. At the time of writing, the ASX 200 has slipped 0.12% to sit at 6,466 points.
The S&P/ASX 300 Index (ASX: XKO) is more or less mirroring its larger index counterpart with a 0.17% fall.
But the same can't be said for the Vanguard Australian Shares Index ETF (ASX: VAS). The VAS ETF aims to track the ASX 300 index, but it's currently sporting a 1.5% decline.
Why is the Vanguard Australian ETF sliding today?
This underperformance can be explained by VAS going ex-dividend today.
Just like many ASX shares, the VAS ETF pays out dividends (also known as distributions) to investors.
After all, the VAS ETF provides exposure to companies in the ASX 300 index, and many of these companies pay dividends. So, the fund collects these dividends on behalf of investors and returns them on a quarterly basis.
Last week, Vanguard announced estimated distributions for its various ASX ETFs for the September quarter.
The cut-off date for these distributions is today, so any investors buying units in the VAS ETF won't be eligible for the upcoming payments.
As a result, the VAS ETF is falling disproportionately to the market today as the value of the distribution leaves its unit price.
What's the latest on the VAS ETF dividend?
This morning, Vanguard announced updated estimated distribution amounts for its funds.
As it stands, the VAS ETF is set to pay a distribution of 145.0577 cents to investors on 18 October. Investors wishing to participate in Vanguard's distribution reinvestment plan (DRP) must elect to do so by 5pm tomorrow.
This latest distribution is slightly higher than VAS' payment in last year's September quarter, which came in at 140.7340 cents.
Including this latest distribution, the VAS ETF has declared total distributions of roughly $6.30 over the last 12 months.
With units in VAS last changing hands at $80.40, this represents a trailing dividend yield of 7.8%.
However, it's important to note that this yield reflects what's happened in the past. And as we're often reminded, past performance is not a reliable indicator of future performance.
Dividends from ASX shares can swing wildly in any given year. And since the VAS ETF is exposed to around 300 of these shares, the swings in its distributions tend to be more pronounced.
The VAS ETF has backpedalled by 16.14% in the year to date. In comparison, the ASX 300 index is showing a 13.53% fall.
