ETF Report: Duff & Phelps Utility and Infrastructure Fund Inc (DPG)

What this ETF is trying to do

The DPG ETF focuses on the utility and infrastructure sectors. These are companies that provide essential services, like electricity or water, to communities. This fund is designed to give investors exposure to these types of businesses through a single ticker symbol on the NYSE.

What the numbers show

Looking at the data from the last year, this ETF has seen significant growth. The current price is $14.91. One year ago, the estimated price was approximately $12.46.

To see how price changes affect money, let's use an example. Imagine you invested $10,000 into this ETF one year ago at the estimated price of $12.46. Before any extra payments were added, your $10,000 would have grown to about $11,966 based on the one-year price return of 19.66%.

The total return, which includes both price growth and extra payments, was even higher at 27.28% over the last year. Year-to-date (YTD), the total return is 20.76%.

Income and distribution explanation

This ETF pays out money to investors, which is called a "distribution." The trailing distributions over the last year totaled $0.84 per share. This results in a distribution yield of 5.63%. These payments usually happen every month, with 12 payouts recorded over the last 12 months.

It is important to remember that a high yield alone can be misleading. A high percentage might look attractive, but you must also look at whether the share price is staying steady or falling.

NAV erosion explanation

"NAV erosion" happens when the value of the underlying assets in the ETF drops, causing the share price to fall over time. If an ETF's price collapses, it can destroy your principal (the original money you put in).

For example, if you buy a share for $100 and the price drops to $50, you have lost half your money. Even if the fund pays you high dividends, those payments might not be enough to make up for the massive loss in the share price. Income investors usually prefer ETFs that go sideways (stay at the same price) or move slightly up. This is because they want their original investment to stay safe while they collect the income.

In the case of DPG, the data shows "No price erosion detected." The erosion score is 100, which is labeled as "good."

Pros

• The ETF has shown strong price growth over the last year and three years.

• It provides regular monthly distributions.

• There is no sign of severe price erosion in the current data.

Cons

• Investors are relying on the utility and infrastructure sectors, which may change in value.

Beginner takeaway

DPG has shown strong growth in both its share price and its total returns over the past year. While it offers a monthly distribution, always remember to look at the total picture—not just the yield—to see if the share price is healthy or eroding.