Let's face it, this ETF offers up no press releases that might inform shareholders of changes to what originally was a double digit annual dividend yield to a yet to be determined dividend, if it ever returns. Why the share price continues to escalate, only the majority holders know. On one day recently you may have noticed roughly 12% of the total float change hands with marginal downside impact. You never see huge volume of shares like that offered for sale without a major drop in price. Sounds like a sweetheqrt transaction. I'd never own an ETF having less than a $5B share float, seems like a few players set the market for this $100M cap. ETF.
I had to e-mail Wisdom(?) Tree to find out the DRW distribution status for March (their website had no information). I immediately got the following response:
"DRW did not have a distribution for March. The fund invests in PFICs (Passive Foreign Investment Companies) and their losses were deducted from the distribution. Gains are added in up years and losses are subtracted in down years. The link below is a good description of these PFICs below..."
I don't claim to be a financial expert, but I found the following basic information which may help explain what appears to be an anomaly ..........
"an ETF allows in-kind redemption by big institutional investors. This prevents the fund’s price from deviating much from its NAV. If the NAV got way above the share price of the ETF, then large investors would buy up the ETF shares on the open market (driving up their price) and exchange them for the component stocks. And vice-versa."
"However, with a CEF there is no guarantee that the price at which the shares trade is equal to the value of the stocks the fund holds. In fact, the net asset value of a CEF — the market value of all the fund’s assets divided by the number of fund shares outstanding — frequently deviates by 5-10% from the share price at which the fund is trading."
The following informative website has so more "light" ...........