30-Day SEC Yield Calculator
Calculate the standard 30-Day SEC Yield for a fund. This metric reflects the income earned by the fund during the most recent 30-day period, annualized. It provides a standardized yield calculation method for comparison between funds.
Enter the fund's **Net Investment Income per Share** earned over the most recent 30 days and the fund's **Average Share Price (NAV)** during that period. Ensure consistent currency units.
Enter Fund Data for 30 Days
Understanding the 30-Day SEC Yield
What is the 30-Day SEC Yield?
The 30-Day SEC Yield is a standardized yield calculation required by the U.S. Securities and Exchange Commission (SEC) for mutual funds, exchange-traded funds (ETFs), and other registered investment companies. It represents the income generated by the fund over the most recent 30-day period, *annualized*. This provides a snapshot of the fund's potential future income stream based on recent performance.
Why Use the 30-Day SEC Yield?
Its primary purpose is comparability. Because all funds calculate it using the same formula and methodology, investors can use it to compare the income-generating potential of different funds on a level playing field, regardless of their distribution schedules.
30-Day SEC Yield Formula
The formula is based on a calculation over the 30-day period, then annualized:
SEC Yield = ((Net Investment Income / Average NAV) * (365 / 30)) * 100
- **Net Investment Income:** Gross investment income (dividends, interest) earned during the 30-day period, minus operating expenses (like management fees, administrative costs).
- **Average NAV:** The average Net Asset Value (share price) of the fund during the same 30-day period.
- **(365 / 30):** The factor used to annualize the 30-day income.
- **\* 100:** Converts the decimal result to a percentage.
This calculator simplifies this by requiring the "Net Investment Income per Share" (which is Net Investment Income divided by the number of shares) and the "Average Share Price (NAV)".
Simplified: SEC Yield = ((Net Investment Income per Share / Average Share Price) * (365 / 30)) * 100
Important Considerations
- The SEC Yield is a historical measure, based on the *most recent* 30 days. It does not guarantee future income.
- It reflects *investment income* (interest, dividends) and excludes capital gains.
- It is typically reported *after* fund expenses are deducted.
30-Day SEC Yield Examples
Here are 10 examples demonstrating the calculation:
Example 1: Standard Calculation
Scenario: A fund had Net Investment Income per Share of $0.025 over the last 30 days, with an Average Share Price of $15.00.
1. Known Values: Net Income per Share = $0.025, Average NAV = $15.00.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.025 / $15.00) * (365 / 30)) * 100 = (0.0016667 * 12.16667) * 100 ≈ 0.0203 * 100
4. Result: Yield ≈ 2.03%.
Conclusion: The fund's 30-Day SEC Yield is approximately 2.03%.
Example 2: Higher Income
Scenario: Same Average NAV ($15.00), but higher Net Income per Share of $0.040 over the 30 days.
1. Known Values: Net Income per Share = $0.040, Average NAV = $15.00.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.040 / $15.00) * (365 / 30)) * 100 = (0.0026667 * 12.16667) * 100 ≈ 0.0325 * 100
4. Result: Yield ≈ 3.25%.
Conclusion: Higher income results in a higher SEC Yield.
Example 3: Lower NAV
Scenario: Same Net Income per Share ($0.025), but a lower Average NAV of $12.00 over the 30 days.
1. Known Values: Net Income per Share = $0.025, Average NAV = $12.00.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.025 / $12.00) * (365 / 30)) * 100 = (0.0020833 * 12.16667) * 100 ≈ 0.0253 * 100
4. Result: Yield ≈ 2.53%.
Conclusion: Lower NAV (all else equal) results in a higher SEC Yield percentage.
Example 4: Higher NAV
Scenario: Same Net Income per Share ($0.025), but a higher Average NAV of $20.00 over the 30 days.
1. Known Values: Net Income per Share = $0.025, Average NAV = $20.00.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.025 / $20.00) * (365 / 30)) * 100 = (0.00125 * 12.16667) * 100 ≈ 0.0152 * 100
4. Result: Yield ≈ 1.52%.
Conclusion: Higher NAV (all else equal) results in a lower SEC Yield percentage.
Example 5: Money Market Fund (Typical Low Yield)
Scenario: A money market fund with Net Income per Share of $0.001 over 30 days and Average NAV of $1.00.
1. Known Values: Net Income per Share = $0.001, Average NAV = $1.00.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.001 / $1.00) * (365 / 30)) * 100 = (0.001 * 12.16667) * 100 ≈ 0.01217 * 100
4. Result: Yield ≈ 1.22%.
Conclusion: Money market funds typically have lower SEC Yields reflecting lower-risk investments.
Example 6: Bond Fund Example
Scenario: A bond fund with Net Income per Share of $0.060 over 30 days and Average NAV of $25.50.
1. Known Values: Net Income per Share = $0.060, Average NAV = $25.50.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.060 / $25.50) * (365 / 30)) * 100 = (0.0023529 * 12.16667) * 100 ≈ 0.0286 * 100
4. Result: Yield ≈ 2.86%.
Conclusion: This bond fund has an SEC Yield of approximately 2.86%.
Example 7: Equity Fund with Dividends
Scenario: An equity fund receiving dividends resulted in $0.015 Net Income per Share over 30 days, with Average NAV of $50.00.
1. Known Values: Net Income per Share = $0.015, Average NAV = $50.00.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.015 / $50.00) * (365 / 30)) * 100 = (0.0003 * 12.16667) * 100 ≈ 0.00365 * 100
4. Result: Yield ≈ 0.37%.
Conclusion: Equity funds often have lower SEC Yields as their primary return driver is usually capital appreciation, not income.
Example 8: Fund with Significant Expenses
Scenario: A fund earned $0.035 gross income per share, but after $0.010 in expenses, had $0.025 Net Income per Share over 30 days. Average NAV was $10.00.
1. Known Values: Net Income per Share = $0.025, Average NAV = $10.00.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.025 / $10.00) * (365 / 30)) * 100 = (0.0025 * 12.16667) * 100 ≈ 0.0304 * 100
4. Result: Yield ≈ 3.04%.
Conclusion: Expenses reduce the Net Investment Income, thereby reducing the SEC Yield.
Example 9: High Yield Example
Scenario: A fund focused on income has $0.100 Net Income per Share over 30 days and an Average NAV of $20.00.
1. Known Values: Net Income per Share = $0.100, Average NAV = $20.00.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.100 / $20.00) * (365 / 30)) * 100 = (0.005 * 12.16667) * 100 ≈ 0.0608 * 100
4. Result: Yield ≈ 6.08%.
Conclusion: This fund shows a relatively high SEC Yield based on the provided inputs.
Example 10: Near Zero Yield
Scenario: A growth-focused fund has only $0.0001 Net Income per Share over 30 days and Average NAV of $30.00.
1. Known Values: Net Income per Share = $0.0001, Average NAV = $30.00.
2. Formula: Yield = ((Income / NAV) * (365 / 30)) * 100
3. Calculation: Yield = (($0.0001 / $30.00) * (365 / 30)) * 100 = (0.00000333 * 12.16667) * 100 ≈ 0.0000405 * 100
4. Result: Yield ≈ 0.004%.
Conclusion: Funds not focused on income distribution will have very low or near-zero SEC Yields.
Further Information
The SEC Yield is a useful tool but should be considered alongside other fund metrics like total return, expense ratio, and fund holdings when making investment decisions.
Common Financial Terms
Understanding these terms helps interpret the SEC Yield:
| Term | Definition |
|---|---|
| NAV (Net Asset Value) | The price per share of a mutual fund or ETF, calculated by dividing the total value of all assets, less liabilities, by the number of outstanding shares. |
| Net Investment Income | Income earned by a fund from its investments (like dividends and interest) minus the fund's operating expenses. |
| Annualization | Projecting a shorter-term rate (like 30 days) to an annual rate, typically by multiplying by the number of periods in a year (365 days / 30 days). |
| Distribution Yield | A yield calculation based on actual distributions paid out by the fund over a period (often trailing 12 months), which can include capital gains and may not be standardized like the SEC Yield. |
Frequently Asked Questions about 30-Day SEC Yield
1. What is the 30-Day SEC Yield?
It's a standardized, annualized yield calculation for investment funds based on the income earned (minus expenses) over the most recent 30-day period.
2. How is the 30-Day SEC Yield calculated?
It's calculated using the formula: `((Net Investment Income / Average NAV) * (365 / 30)) * 100`. Net Investment Income and Average NAV are based on the most recent 30-day period.
3. Why does the SEC require this specific yield?
To provide investors with a standardized metric for comparing the income-generating ability of different funds on a consistent basis.
4. Does the 30-Day SEC Yield include capital gains?
No, the 30-Day SEC Yield is based *only* on net investment income (dividends and interest earned) and *excludes* capital gains distributions.
5. Is the SEC Yield guaranteed?
No, the SEC Yield is based on *historical* data (the most recent 30 days). It does not predict or guarantee future income or performance.
6. How is "Net Investment Income" determined for the calculation?
It's the total income from investments (like dividends and interest) earned by the fund during the 30-day period, minus the fund's operating expenses (management fees, administrative costs, etc.).
7. How is "Average Share Price (NAV)" determined?
It's typically the average daily Net Asset Value (NAV) of the fund over the 30-day period.
8. How is the 30-day period annualized?
The 30-day income rate is multiplied by (365 / 30) to project it over a full year.
9. How does the SEC Yield differ from Distribution Yield?
SEC Yield is standardized, uses net *investment income* only, and is based on the *last 30 days*, annualized. Distribution Yield is often a trailing 12-month figure based on *actual payouts*, which can include capital gains and might not be calculated consistently across all funds.
10. Can a fund have a low or zero SEC Yield?
Yes. Growth-focused funds or those that invest in assets that generate little to no traditional income (like many stocks that don't pay dividends, or certain commodities) will have low or near-zero SEC Yields. It reflects their investment strategy, not necessarily poor performance if their goal is capital appreciation.
