Do you really think I've never seen the fund information sheet?

Listen, when you see a fund trading at 20+% discount to NAV, you can either take it at face value and think "Wow, I'm getting all these securities at a 20% discount. That's like free money. Everybody must be stupid except for me." Or, you can ask yourself some legitimate questions: is that NAV accurate, or does this fund hold some illiquid securities that might not be priced accurately? Or "Is somebody out there who's done more research than I have pricing a prediction on NAV into the stock price of this ETF?"

When you see a 20% dividend, you can either take that at face value and say "Wow, 20% that's an awesome return, especially in a fund who's objective is capital preservation. Everybody must be stupid except for me! This is free money!" Or, you can ask yourself some serious questions, like "Hmm. 20% seems like a dividend return on junk bonds. Just how stable are the securities, and is there a realistic chance that they'll be able to continue to pay the dividend they've been paying in the past."

You seem to be assuming that if 50% of the banks fail, the others will be able to continue to pay their full dividend. I seem to see it differently, that even if most of the banks this fund holds don't go completely under, they are going to slash their dividends to close to zero, or more likely, to a yield more commensurate with historical averages. Not to mention the fact that if 50% of these banks actually fail, your NAV is reduced by half, you probably lose 30% of your capital (assuming the discount narrows to 0%), even before you consider that this fund is leveraged 42% according to your link, so if 50% of the securities go to zero, you going to lost a lot more than 50% of NAV.

What I would be doing if I were you is looking at this funds holdings and trying to value the preferred securities of the banks they hold. If you do that and it still looks like a bargain, congratulations you may make yourself some money. But if you're going into this investment looking only at the discount to NAV and current dividend yield, I can tell you from experience that you're setting yourself up for some pain.

Anyway, good luck with this one. I wouldn't touch it with a 10 foot pole.

But thanks for pointing me to the fund info page. It really gave me a clue.