Question of the Week – dividend harvesting

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Question: I have bought some Betashares Australian Dividend Harvester Fund ETF (HVST) for $21. So far, the capital loss is much greater than the dividend and there is no sign of recovery. What should I do? Sell or hold?

Answer (By Paul Rickard): On track record and security design, HVST is a sell.

One year performance to 31 January 2018 is -8.9%. Over that same 12 months, the S&P/ASX 200 Accumulation index is up by 12.18%. By design, I don’t like securities that distribute capital as a distribution.

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