Split Funds Tanking ...Split Funds Tanking... WHY? Its not Rocket Science. Its because the STOCKS INSIDE the fund are tanking and since these are leveraged, they will tank even more.
During these times, it is BY FAR the best time to buy more shares and the WORST time to sell. But if you cannot stomach the volatility and the "missing dividends" part, you should NOT invest in these products. In case you haven't noticed, the Canadian market is down hard so ALL FUNDS related to the Canadian market and Canadian banks are DOWN : BANK, HMAX, BKCL etc.
Now is the worst possible time to sell them at a loss, especially in a registered account = cannot harvest the capital losses.
In a cash account,its not so bad since you can carry forward the losses forever to offset future capital gains. (including capital gains from your passive income)
My opinion: Do not sell them now, especially if they are in a registered account. Relax, have a drink and stop looking at them everyday. When the stocks recover, these funds will recover. Then you can sell them at a much smaller loss or not at all because you will have gained the 3 most important qualities as an investor: Discipline, Patience and Experience