Nisdey : Totally agree
I bought into this ETF in about October, attracted by it's years long track record of high dividend yield, however the last two months have been disappointing, as well as the substantial capital loss. Unfortunately I bought into this without really doing much research, and now I'm kicking myself, because it seems to be one of the most obscure funds in existence. It's name is nonsensical, and the index it's supposed to be leveraging doesn't seem to exist.
Is it worth cutting losses, or DCA to obtain more shares in the hope of an improved dividend return?
Seems this is also pretty illiquid, so being able to sell without needing to effectively fire-sale it is also difficult.

aceirus : Same here. Attracted by the dividend yield so invested since Nov only :) hope it’s not gonna become dividend trap. Let’s see
Anyway I think some of the underlying stocks are listed in the prospectus available in this app, just need someone to pour through everything and consolidate a list for us hahah

Nisdey OP aceirus : I read through the attached prospectus (didn't even notice it before). Turns out this ETF is pretty deceptively named, and even more deceptively described.
This is just a $1.5bn unsecured senior debt fund. The prospectus is extremely vague as to what interest is paid and what the default criteria is, and nowhere does it actually list who they've lent money to.
These kinds of investment vehicles were quite popular during periods of low interest rates, because they often had fixed interest rates well above any secured loan rate, with (supposedly) very little risk exposure, as the borrower is said to be an established and profitable business that would need to declare bankruptcy in order to default on payment, and being "senior" debt, it is prioritised during liquidation.
Does anyone know where I could find an annual report or something from this lot which indicates who their borrowers actually are, and how many of them have defaulted?

aceirus Nisdey OP : wow really thanks for spending the time and sharing your findings.  will be more cautious on this fund from now. shall wait and see…

aceirus : I’m puzzled too, maybe less then optimistic inflation data. But anyway remember this ETF is 2x leveraged

Nisdey OP aceirus : I'm aware of that. It wasn't the magnitude that surprised me, just that this ETF was affected at all. either way, dividend yield will just be higher at this price, which is why I'm in it at all. can DCA the capital loss over time, maybe there'll be a rebound over time

Nisdey OP aceirus : Trump announced that he wants to abolish the "debt ceiling".
I agree that the debt ceiling is a pointless concept, since it's not really a ceiling, just an arbitrary number that needs a law passed to increase. All it does is create controversy and cause government shutdowns while people pontificate about how much the debt the country is in, and politicians use it as an opportunity to wangle concessions out of whoever is in government at the time.
BUT it certainly [redacted] the bond market, and reignited concerns over inflation. So yeah. That's the reason.
And right after the Fed were all "hawkish" over interest rates.
Hawkish, why do we still use that antiquated word, and only ever in the context of interest rates.
I know what it means, but for some reason, it's also a valid way of saying that something "has a physical appearance reminiscent of a hawk".
But isn't that valid with all words, so anything can be blankish. Yet nobody says retangleish, or oblongular for that matter.

Wolf of WaLL Stt : Check thisFAQ:Where Does My Dividend Go?

103367445 OP Wolf of WaLL Stt : Thanks for sharing

Nisdey : it's being paid on December 23rd

PanJen : There is Oh. But the market volume is too small I need to ask and will come down

Summer_0214 : Can I sell this at any time?

Nisdey Summer_0214 : if you're willing to sell at a low enough price... Sure.
WARNING: this ETF is not very liquid.