What this ETF is trying to do

The HARBOR DISCIPLINED BOND ETF (ticker: AGGS) is an exchange-traded fund that focuses on bond investments. While the specific holdings are not listed in this report, bond ETFs generally aim to provide investors with regular income through interest payments.

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 the change in the share price. For AGGS, the year-to-date (YTD) price return is approximately -5.53%. The one-year price return is approximately -6.64%.

• Total Return: This includes both the share price changes and the money paid out to investors (distributions). The YTD total return is approximately -2.38%, and the one-year total return is approximately -1.74%.

Because the total return numbers are higher than the price return numbers, it shows that the distributions helped offset some of the share-price decline.

To visualize this, if you had invested in the shares at the estimated price from roughly one year ago ($41.71) and the current price is $38.94, the share price alone has gone down.

Income and distribution explanation

This ETF provides regular cash payments, known as distributions. The distribution yield is approximately 5.38%. This number describes the cash payments relative to the current ETF price. These payments usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean you are earning that full amount as a total return. You must look at the total return to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. StockValueFinder uses an "erosion-risk score" to measure this risk.

AGGS has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk and does not mean the fund's value has definitely collapsed. There is no severe erosion-risk flag for this ETF.

Pros

• Regular Income: The ETF has a distribution yield of approximately 5.38% and pays out distributions frequently (usually monthly).

• Income Rating: It has an income rating grade of "C" with a score of 67.

Cons

• Price Decline: The ETF has experienced a share-price decline over the last year.

• Negative Total Returns: Both the YTD and one-year total returns have been negative.

Beginner takeaway

When looking at AGGS, notice that while the ETF pays out cash (distributions), the actual price of the shares has been falling. Even when you add the cash payments back in, the total return for the year is still negative. Always look at both the price return and the total return to get the full picture of how an ETF is performing.