104732037 : This screenshot not from Moomoo. Reinvestment on Moomoo is manual.

104732037 : The NAV drops every month to pay dividend. Just wait for it to rise back and reinvest earnings. But if you sell now, you lose.

104732037 102718588 OP : Best time to enter is when it drops. It will rise back to next month and drop again when pay dividend… If don’t like you can try out KDI Save, no such behavior.

104732037 102718588 OP : Just buy and hold. Reinvest the monthly dividends. That’s all. If you don’t understand how it works, stay away.

104732037 : The NAV drops every month to pay dividend. Just wait for it to rise back and reinvest earnings. But if you sell now, you lose.

104732037 : I’m just trying to figure this out. I think this is how it works:
There’s NAV per unit, and the NAV keep increasing daily until the monthly ex-dividend date, after which the NAV drops by roughly the amount of dividend. Keep repeating this every month.
So if you bought the fund right before ex-dividend date, you bought it at the highest price, and you’re going to see your principal drop on ex-dividend date, and your dividend not much.
Then you have to wait for the NAV (and your principal) to rise again until the next ex-dividend date. Then only you will start to see some returns from the dividend.
So yes, you can lose money in the short term if you just sell the fund immediately after the NAV drops on ex-dividend date.
Maybe it helps to time the market and buy into the fund right after the ex-dividend date, still exploring the answer to this. And I think best to reinvest the dividends manually all the time to ensure you gain back from buying at high NAV.
Honestly, I think there are better products in the market for this sort of thing.