What this ETF is trying to do

The Franklin Clearbridge Enhanced Income ETF (ticker: YLDE) is an exchange-traded fund designed to provide income. Based on its holdings, it invests in a variety of large companies across different industries. This report uses data as of August 25, 2026.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return. Price return only tracks how much the share price changes. Total return includes those price changes plus any cash distributions paid out to investors.

Here is what the data shows for YLDE:

• Year-to-Date (YTD): The YTD price return is approximately 6.73%. The YTD total return is approximately 11.46%.

• One Year: The one-year price return is approximately 7.95%. The one-year total return is approximately 16.14%. We can estimate the share price was about $53.57 roughly one year ago.

• Three Years: The three-year price return is approximately 37.81%, while the three-year total return is approximately 56.53%.

Income and distribution explanation

This ETF focuses on providing cash to investors. The distribution yield is approximately 6.99%. This number describes the cash distributions relative to the current share price. These payments are usually made monthly, with 12 payouts recorded over the last year. Most of these payments have occurred on Mondays.

It is important to remember that a high distribution yield does not guarantee a specific total return. While distributions provide cash income, they do not guarantee that your original investment (your principal) will stay the same value.

NAV erosion explanation

"NAV" stands for Net Asset Value, which is the actual value of the assets held by the fund. NAV erosion happens when the value of those underlying assets drops significantly over time.

For YLDE, the erosion-risk score is 100, and the label indicates "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This means the data does not show signs of the substantial price deterioration often associated with high-risk erosion.

Top Holdings

The following are the top holdings in this ETF. Please note that this is a partial list, as the fund holds 55 total assets. Holdings can change over time.

• Williams Companies Inc (4.42%)

• Exxon Mobil Corp (3.94%)

• Alphabet Inc Class A (3.55%)

• Nvidia Corp (2.92%)

• Air Products and Chemicals Inc (2.90%)

• Nestle SA ADR (2.87%)

• Apollo Global Management Inc (2.71%)

• Microsoft Corp (2.68%)

• Unilever PLC ADR (2.61%)

• Public Storage (2.56%)

Pros

• The ETF has shown positive total returns over the one-year and three-year periods.

• It provides a regular monthly distribution of cash.

• Current data shows no detected price erosion risk.

Cons

• As with all investments, share prices can change, and there is no guarantee of profit.

• The total return is higher than the price return, meaning much of the value comes from distributions rather than just the stock price going up.

Beginner takeaway

When looking at YLDE, it is helpful to distinguish between the share price and the total return. For example, if you had invested $10,000 a year ago, your investment's value would have changed based on both the rising share price (from an estimated $53.57 to $57.83) and the cash distributions received. Income investors often look for funds that can maintain their share price while paying out cash, as a collapsing share price can quickly cancel out the benefits of high distributions.