Understanding the TAPPALPHA S&P 500 GROWTH & DAILY INCOME ETF (TSPY)

What this ETF is trying to do

The TSPY ETF is designed to focus on growth companies within the S&P 500. At the same time, it aims to provide regular income to its investors. It tries to balance the goal of growing in value with the goal of paying out cash frequently.

What the numbers show

As of July 13, 2026, the current price of one share is $25.44. If we look back at the estimated price from 12 months ago, it was about $24.43.

To see how this affects an investment, let's use a simple example. Imagine you invested $10,000 into this ETF one year ago based on those prices. Before any extra cash payments were added, your $10,000 would have grown to approximately $10,413 because the share price went up by about 4.13% over that year.

When looking at total returns (which includes both price changes and cash payments), the one-year total return was 19.97%. This shows that much of the profit came from more than just the rising share price.

Income and distribution explanation

This ETF is known for its high distribution yield, which is currently 13.98%. It has made 12 payments over the last year, meaning it usually pays out money every month. The total amount paid out per share over the last 12 months was $3.5571.

It is important to remember that a high yield alone can be misleading. A very 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" is a term used when the value of the underlying assets in an ETF drops over time. Think of it like a bucket with a small hole in the bottom; even if you keep pouring water (income) in, the level of the water (the share price) might still go down.

In this specific case, the "erosion score" is 94, which is labeled as "Stable / sideways." This means the ETF is not currently showing signs of severe erosion. It is not losing its value rapidly.

Pros

• It provides a high monthly income stream.

• The one-year total return has been strong at nearly 20%.

• The price has remained relatively stable rather than collapsing.

Cons

• The year-to-date price return is slightly negative (-0.23%), meaning the share price itself has dipped a little this year.

• High-yield investments can be complex and require careful watching of the share price.

Beginner takeaway

Income investors usually prefer ETFs that go "sideways" (stay at the same price) or move slightly up. They prefer this because if an ETF's price collapses, you lose your original money (your principal), which can cancel out the benefits of the income you received. Because TSPY is labeled as stable/sideways, it is not currently showing the type of price collapse that destroys principal. Always remember to look at both the yield and the share price together.