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Large Losses or Dividend/Capital Gains Distributions?



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. It most likely isn’t market-related, as was the case in both of these instances. When in doubt, please call us. We always encourage questions. Just be aware that distributions are common at this time of year. Typically, these pricing issues are resolved within a few days.

Contact our advisor support team at (888) 426-4689.

Important Disclosures

Integrated Capital Management, Inc. is an SEC Registered Investment Advisor. Registration does not imply any certain level of skill or training. Monthly “Market Flash” is intended solely to report on various investment views held by Integrated Capital Management. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable, but should not be assumed to be accurate or complete. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer or recommendation to purchase or sell a security.

Past performance is no guarantee of future results. Please note that investments in foreign markets are subject to special currency, political, and economic risks. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.

Strategy performance results are net of fund expenses, gross of advisory fees and other expenses that would be incurred in the management of client accounts, such as commissions, transaction fees, and/or custodial charges, and reflect the reinvestment of dividends and capital gains. The client’s return will be reduced by the advisory fees Integrated Capital Management, Inc. charges for the management of an account. Individual account performance and investment management fees incurred by clients may vary as fees for smaller accounts are higher on a percentage basis than for larger accounts. Investment return and principal value will fluctuate, so shares, when redeemed, may be worth more or less than their original cost. For additional information regarding advisory fees, please review Integrated Capital Management, Inc.'s Form ADV Part 2A.

TICE Blended Index comprised of 32% S&P 500/8% MSCI EAFE/38% Barclays Aggregate Bond/20% Barclays Municipal Bond/2% Cash

For 1-on-1 Use with Clients Only. Not to be Distributed to Third Parties.