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That's true. Divine Wrath works on activated effects of monsters on the field.

For example, like the picture shows. Cannon Soldier's effect could be negated with Divine Wrath and Cannon Soldier would be destroyed.

It also works in more complicated ways, for example; it works against Sacred Pheonix of Nephthys. This works (I think) by activating Divine Wrath whenever it reappears on the field after being destroyed by the effect of a spell, trap or effect monster. You can chain Divine Wrath onto Nephthys' heavy storm-like effect. This will save all the magic/trap cards on the field and will also kill Nepthys.

Note that Nepthys will not be able to return to the field again with its effect as it was destroyed by Divine Wrath as it was returning. Meaning it never hit the field to begin with and so was not destroyed on the field, meaning that the requirements for Nephthys' effect were not fulfilled.

Yes, Bassoon is right.. I have this nak for memorizing the rules of every card i've seen, it's like a curse since I quit playing the card in august, but I still like yugioh sweatdrop

yep yep. an example used in a recent ruling for how it was used was Divine Wrath vs. Sacred phoenix of nephthys.

example1: The phoenix is special summoned. you may chain Divine Wrath to negate the phoenix's effect that destroys spell and trap cards the destroy it. the phoenix will be summoned the next turn.

example2: you may chain Divine Wrath to the effect that Special Summons the phoenix even though it activates in the grave. because the phoenix was never summoned, it cannot be revived by it's own effect next turn