We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
The price of an index-tracking ETF should be linked to the value of the index, not market sentiment about the ETF itself.
ISF is a little more complicated as it collects dividends on the underlying shares. So if a number of FTSE constituents go ex-div on the same day, as you explained below, that should lower the FTSE index and the ETF price.
But in principle, Black Rock should be able to distribute the dividends it collects, independently from ETF price.
Maybe another factor is redemptions by large institutional investors. If they sell large chunks of their ISF back to Black Rock on ex-div day, reducing its asset value, maybe this could explain a price change in the ETF.
Hi minsky.
It's the market that adjusts the SP on ex-dividend day, not Black Rock. Typically it will open down (by the value of the dividend) but other market factors (good day / bad day) will come into play throughout the day.
https://www.investopedia.com/articles/investing/091015/how-dividends-affect-stock-prices.asp#toc-the-effect-of-dividend-psychology
"After a stock goes ex-dividend, the share price typically drops by the amount of the dividend paid to reflect the fact that new shareholders are not entitled to that payment."
Thanks for trying to help me with this Icwanderer. Up to yesterday I'd thought the ISF price was automatically linked to the FTSE 100 value, and not related to people buying or selling ISF, as with a normal share. I'd also assumed the price of regular shares ex-div was due to market behaviour (people not paying the pre-ex-div price once the dividend had been given, or selling once they'd gained the dividend) rather than some mechanism altering the price. So ISF paying a dividend shouldn't affect its price.
Does that mean its Black Rock which subtracts the dividend value on ex-div day?
The dividend in question is 10.4p - which is approx 1.4% of the current share price.
Thanks Icwanderer.
I assumed that regular shares normally drop on ex-div day because people sell. But the ISF price is supposed to be linked to the price of the underlying instrument - so shouldnt have changed by more than the dividend.
Today is ex-dividend day
Anyone know why the tracking error is so large?
FTSE hardly changes - this drops nearly 1.5%.
Will sell today, but want 750p. Don't want to be too greedy!
SP slipped to a level where I can buy so I'm in @709p
Next dividend announced today!
Dividend amount: 8.13p per share
Ex-div date: 17th June
Payment date: 30th June
Happy days!
Ex div yesterday. Worth 3.5p
More of an improvement with Oxford vaccine news today!
Remaining 2020 dividends for ISF
Announced: 10/09
Excludes Div: 17/09
Paid: 30/09
Announced: 03/12
Excludes Div: 10/12
Paid: 23/12
Paying GBP 0.0426 per share dividend around the end of the month.
Spot on darrenp, thx very much.
I’m guessing there will be an rns out this morning, going ex divi next week.
Pretty sure as an etf it will be. Don’t know how much yet but it will be based on dividends received from its constituent parts over the preceding quarter. Will be an rns out soon
Anybody know if this share is paying a dividend for June 2020?
I trade these have done near daily for last few years , easy to buy sell , tight spread , made 5p per share today . You need to do 20 or 30k trades to make it worth doing .
Strange that ETFs aren’t traded that much in the U.K by small retail traders.