I Strongly agree with your sentiment, having been burned and sold out at a loss. I think it's worse than a turkey though....how do you explain the share appreciation after the first huge dividend miss? How now does anyone explain the relative share price stability after the second consective miss? Thanks for the link, new rule in place: nix any ETF containing "PFIC". Hope you didn't lose too much.....and considering that the share prices of the ETF went up after you sold(I assume after the fist miss), someone made $ on your sale!
I have been unable to find any crtical analysis of this ETF, any online research suggests you are getting into a honey of an investment. Of course now, the missed dividends are starting to get picked up in the public domain to adjust down the net annual dividend, but there was seemingly a 2 month lag. This is an insider's game as far as I'm concerned.
So let me get this straight, if hypothetically 100% of DRWs floated ETF shares showed up for sale at once with no bids, it would have no effect on the ultimate transaction price(if it is strictly tracking its NAV)?? Doesn't make sense to me, open market transactions should always be affected by the desires and desparation of buyers and sellers. I could have placed a limit order to sell my shares at an arbitrary level, what's to prevent that? ETFs can trade at a discount or premium to their NAV, yes/no?So I fail to understand why on 3/14/12 on 10x volume of 550,000 shares, the share price fell only $0.50 off of $27.3. I lost far more than you since I bought high and sold everything when I found out about the first dividend drop, which happened to be equal to 60% of the total annual dividend payout,and was the nadir of the share pricing for the year. It seems to me, a select few knew this was coming and sold prior to the dividend loss....but I was convinced the fund would tank after this fact came to light. I called Wisdom Tree with the same WTF dividend question because it was "hidden" from any public domain news releases, it wasn't even reflected in the reported trailing dividend data on any of the stock tracker websites(because in the fine print, the trailing data was conditioned to a date favorable to delaying the adjustment by about 2 months). So now the share price is dropping along with the rest of the market. It's immune to a 2 huge dividend misses???
I got trapped by my outsider, naive perception that the loss in share price would be more than compensated for by the high yield, never dreaming that the winter dividend was asymettrically large and about to be missed .....my bad!!! Thanks for your commiseration and shared experence, one learns from mistakes like this..hopefully! BTW, thepublic domain distribuion yield has yet to be adjusted for the second dividend miss, so at 5%, it's still artificially high.