What this ETF is trying to do

ADAPTIV SELECT ETF (ticker: ADPV) is an exchange-traded fund traded on the NYSE. While the specific goal of the fund is not listed, it holds a variety of different companies. Because the list provided is partial, we can only see some of its largest investments.

Top Holdings:

• HEWLETT PACKARD ENTERPRISE CO (6.57%)

• ROIVANT SCIENCES LTD ORDINARY SHARES (5.37%)

• VIATRIS INC (4.83%)

• RINGCENTRAL INC CLASS A (4.54%)

• MILLICOM INTERNATIONAL CELLULAR SA (4.15%)

• APA CORP (4.05%)

• AVANTOR INC (3.96%)

• AMERICOLD REALTY TRUST INC (3.90%)

• HOST HOTELS & RESORTS INC (3.90%)

• PERMIAN RESOURCES CORP CLASS A (3.86%)

Please remember that holdings can change over time.

What the numbers show

The current price of ADPV is $44.28. An estimated price from roughly one year ago was $43.96.

When looking at performance, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price changed. Total return includes both the price change and any cash distributions paid out.

• Year-to-Date (YTD): The price return and total return are both 3.35%.

• One-Year: The price return was 0.72%, while the total return was 1.40%.

• Three-Year: The price return was 82.96%, and the total return was 85.82%.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. ADPV has a distribution yield of 0.67%. This means the cash paid out is 0.67% of the ETF's price. The trailing distributions were approximately $0.30.

The payouts for this ETF are described as "irregular" or "less frequent." It is important to remember that a distribution yield is not the same as your total return. A high yield does not guarantee you will make money if the share price falls.

NAV erosion explanation

NAV (Net Asset Value) refers to the actual value of the assets held inside the ETF. "NAV erosion" happens when the value of those underlying assets declines over time.

ADPV has an erosion-risk score of 94, which is labeled as "Stable / sideways." The severity is rated as "good," and there is no severe erosion-risk flag present. This suggests the fund's value has been relatively steady.

Pros

• The ETF has shown strong total returns over a three-year period (85.82%).

• The erosion-risk score suggests the fund's value has been stable.

Cons

• The distribution yield is relatively low at 0.67%.

• Payouts are irregular and do not happen on a set schedule.

Beginner takeaway

When looking at ADPV, notice that the total return is higher than the price return. This happens because the total return accounts for the cash distributions paid to investors. Always look at both numbers to see how an ETF is performing overall.