Can someone ELI5 how the cash yield and the SEC Yield of a bond fund can be so different? I own SCHJ and VCSH. The cash yields are in the 1.2%-1.8% range. But the claimed SEC yield is around 3.5% for each. I get that one is the current cash yield, and the other is some sort of forward looking yield. But what exactly is it, and how is it that they are so different? I have read the definition of SEC yield and I am still confused.
Submitted July 13, 2022 at 08:11AM by mspe1960 https://ift.tt/f63RSec
