Large Losses or Dividend/Capital Gains Distributions?
Michael Paciotti - Friday, December 10, 2021
Over the past week, we have received several calls regarding what appears to be large drawdowns in certain ETFs in our portfolios. In both instances, the drawdowns resulted from large dividend or cap gain distributions, not actual losses. It is common for a fund or ETF to trade “ex” the dividend a few days before seeing the dividend post to accounts. At first glance, it can take you by surprise, with the immediate reaction being poor market performance as the likely cause.