Understanding the VictoryShares Pioneer Asset-Based Income ETF (ABI)

This report explains the data for the VictoryShares Pioneer Asset-Based Income ETF, traded on the NASDAQ.

What this ETF is trying to do

This ETF is categorized as an asset-based income fund. While the specific holdings are not listed in this report, these types of funds generally focus on generating income for investors.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how much the share price goes up or down. Total return includes both the price changes and the cash distributions (dividends) paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately -0.85%, meaning the share price has dropped slightly this year. However, the YTD total return is approximately 3.44%.

• One-Year: The one-year price return is approximately -1.62%. However, the one-year total return is approximately 4.78%.

To visualize this, if you look at the estimated price from roughly one year ago ($25.01) compared to the current price ($24.60), you can see a small decline in the share price alone.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 6.38%. This number represents the cash paid out relative to the current ETF price.

The fund usually pays out monthly, with 12 distributions recorded over the last year. Most of these payments have occurred on Thursdays. While a high yield provides cash income, it is not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). A falling share price does not always mean NAV erosion is happening, but investors often watch it closely.

For this ETF, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• Positive Total Return: Even though the share price has seen slight declines, the total return (which includes distributions) has been positive for both the year-to-date and one-year periods.

• Stable Risk Score: The erosion-risk measurements suggest the fund is currently categorized as stable.

Cons

• Negative Price Return: The actual share price has decreased over the last year and year-to-date.

• Income Grade: The fund has an income rating grade of "C."

Beginner takeaway

When looking at this ETF, it is helpful to distinguish between the share price and the total return. While the share price has gone down slightly, the total return is positive because of the cash distributions being paid out. Always remember that a high distribution yield provides cash, but it does not guarantee that the share price will stay the same.