Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money. You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!
- Active Topics
- Search
Notification
Error
does any one buy funds just before they go ex dividend and then sell afterwards? + Start a new discussion + Reply to discussion |
David_M13 | Posted: 31 July 2019 10:13:00(UTC) #2 | ||
Joined: 28/09/2018(UTC) | Surely the dividend is already factored in to the price? | ||
Back to top | Quote |Edit by user | ||
Tim D | Posted: 31 July 2019 14:05:25(UTC) #11 | ||
Joined: 07/06/2017(UTC) Thanks: 31266 times | (US research, but anyway...) Reminded me of this Swedroe piece which notes there are some funds which engage in just such behaviour for the purposes of artificially "juicing" their yield higher : https://www.etf.com/sect...vidend-juice?nopaging=1 . Mentions an extreme example of a fund with a 2000% portfolio turnover and a yield of 19%. Article also notes that it's a completely irrational thing to do (although of course when funds are doing it they're simply quite rationally exploiting their investors' irrational preference for dividends). | ||
Back to top | Quote | ||
1 user thanked Tim D for this post. King Lodos on 31/07/2019(UTC) | |||
3 Pages123Next page | + Start a new discussion + Reply to discussion |