I've seen some confusion on this sub regarding this question, with some subtracting the expense ratio from the yield to calculate distributions and others saying the yield is already after expenses. I looked online and couldn't find a straight answer. I also checked the definition for TTM yield and 30-day SEC yield on my brokerage and it wasn't clear to me.
For reference, on Schwab this is how these yields are defined:
For reference, on Schwab this is how these yields are defined:
- TTM: Distribution Yield is the Trailing 12-Month End Yield - Morningstar computes this figure by summing the trailing 12-month's income distributions and dividing the sum by the last month's ending Net Asset Value (NAV), plus capital gains distributed over the same time period. Income refers only to interest payments from fixed-income securities and dividend payments from common stocks.
- 30-day SEC Yield: The net investment income earned by a fund over a 30-day period displayed as of month-end. The 30-day SEC Yield is expressed as an annual percentage rate based on the fund's share price. It is calculated by dividing the net investment income per share for the 30 days ended on the date of calculation by the maximum offering price per share on that date. It is updated at month-end.