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Microsoft Corporation (MSFT $510.18)
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NVIDIA Corporation (NVDA $190.17)
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Harvest Palantir Enhanced High Income Shares ETF (PLTE $26.46)
Q: For single stock etf's like this (and nvidia, Microsoft, etc), why not just trade around the ex dividend dates to lower risks and take advantage of the juicy (25% for plte!!) distribution? What am I missing with this approach
5i Research Answer:
Generaly, these stocks decline by an amount similar to the dividend paid, so there is not much to gain on a repeatable basis. PLTE has a short history, and does not always drop with a dividend (if the underlying stock moves a lot this will offset the drop). But, considering bid/ask spreads, and taxes, and the likelihood of a drop on the ex-dividend date, it is very hard to 'capture' the dividend for 'free' profitably on a repeatable basis. With their structure, and leverage, these need to be considered highly risky securities. PLTE is net down 1.1% in three months even with the high yield.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in MSFT, NVDA.