OK, so as of yesterday, 12/18, PHK had a NAV of $5.05, and shares traded for $4.58, or a 9 percent discount. So today, PHK announces it is giving back 24 cents of that $5.05. Assuming the NAV stays the same, it would drop to $4.81 after the dividend. Now, according to Yahoo!, shares are selling for $5.25 after hours. Is it just me, or does this make no sense? Why wouldn't these people buy a couple of days ago when shares were selling at a 20+ percent discount to NAV, instead of a 9? percent premium?
I just don't understand why anyone would ever knowingly pay more than NAV for an ETF. In this case, it was obviously that $5.25 was more than NAV. (To be exact, NAV as of yesterday was $5.06, according to www.etfconnect.com. Back out the announced, but yet-to-be-paid November and December dividends and it's even less.)