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Hi all,

A semi-random question: why would yearly dividend distributions between two seemingly identical funds differ so much? The majority of my retirement investments are held in my employer's optional 457 plan, which is invested in Vanguard's Institutional Target Retirement 2035 (VITFX) fund. I also hold shares in the individual investor fund (VTTHX) in my Roth IRA. I understand these are two different funds with their own tickers, prices, fees, etc., but since the holding are identical, wouldn't the distributions basically be the same?

The holdings are virtually identical, with the same four underlying index funds at the same portfolio percentages (the institutional fund has a lower expense ratio), yet the distributions for the institutional fund ($.164) were less than half those of the individual fund ($0.371). The institutional fund also did not pay any short or long term capital gains. I clearly am not understanding how this is possible. What gives? I'd appreciate any enlightenment!

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