ETF Education Report: Adams Diversified Equity Fund (ADX)

What this ETF is trying to do

The Adams Diversified Equity Fund (ADX) is an exchange-traded fund listed on the NYSE. While the specific investment goals are not detailed in the data, it is categorized as a standard ETF rather than a leveraged or crypto-related fund.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only how much the share price has changed.

• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.

For ADX, the numbers show growth in both areas:

• Year-to-Date (YTD): The price return is approximately 10.63%, while the total return is higher at approximately 17.36%.

• One Year: The price return is approximately 16.01%, and the total return is approximately 25.54%.

• Three Years: The price return is approximately 52.66%, and the total return is approximately 112.78%.

To visualize the price change, the estimated price from roughly one year ago was $22.24. The current price is $25.80.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. ADX has a distribution yield of approximately 7.40%. This means the amount of cash paid out is about 7.40% relative to the ETF's price.

The trailing distributions were $1.91. These payments usually happen quarterly, and in the last year, there were 4 payouts. It is important to remember that a high distribution yield does not guarantee the same return as the total return, and distributions are separate from the growth of the share price.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases significantly over time. StockValueFinder uses an "erosion score" to measure this risk. For ADX, the erosion score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this fund.

Pros

• The fund has shown positive price returns over the one-year and three-year periods.

• The total return is higher than the price return, meaning distributions have added value to the overall performance.

• The erosion-risk measurement is rated as "good."

Cons

• The provided data does not list any specific Top Holdings, so the individual companies inside the fund are unknown from this report.

• As with all investments, past performance does not guarantee future results.

Beginner takeaway

ADX provides both share-price growth and cash distributions. Because the total return is higher than the price return, it shows that the distributions have contributed to the fund's overall value. Always remember to look at both price movement and total return to get the full picture of how an ETF is performing.