XSTR is not just a straight forward ETF that track the SONIA rate and never goes down. For an ETF with a low risk rating, it’s 6 monthly price drops every February & August for the last 2 years come as a surprise. What causes them? It can’t be a sell off after the xd because this year’s xds were in February & May.
It’s the dividend distribution. You see similar in other distributing ETF’s, e.g., UESD
If you are correct then why didn’t the price drop after the May '24 distribution
and why did the price drop in August when there wasn’t one scheduled?
CSH2’s price drop is at the start due to the bid/offer spread so you do need to hold for days / weeks to “break even”.
I don’t see xstr isin LU0321464652 in that link
Fund went xd on 21 Aug 24
All ETF’s have a bid/offer spread so you’ll always have that if you buy at offer and then value the holding at the bid price
Sorry I referenced the wrong dividend announcement.
Many thanks. That clears up my question.
Many thanks for the link & analysis.