ETF Education Report: Liberty All-Star Growth Fund Inc (ASG)

What this ETF is trying to do

Liberty All-Star Growth Fund Inc (ticker: ASG) is an ETF traded on the NYSE. While the specific investment goal is not detailed in the data, it is categorized as an ETF rather than a single stock or a crypto-related fund.

What the numbers show

When looking at an ETF, it is important to separate "price return" from "total return." Price return only tracks how the share price moves. Total return includes both the price movement and any cash distributions paid out to investors.

Here is what the data shows for ASG:

• Year-to-Date (YTD): The price return is approximately -3.77%. However, the YTD total return is positive at about 2.84%.

• One Year: The one-year price return is approximately -9.89%, while the one-year total return is approximately -1.50%.

• Three Year: The three-year price return is about 4.08%, but the three-year total return is much higher at approximately 35.16%.

• Five Year: The five-year total return is approximately -9.33%.

To visualize the price change, an investor's $10,000 investment in shares would have been worth an estimated $9,646.64 one year ago, based on the estimated price of $5.66 compared to the current price of $5.10.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 9.22%. This means the amount of cash paid out is high relative to the current share price. These distributions usually happen quarterly, and there were 4 payouts in the last 12 months.

It is important to remember that a high distribution yield does not mean the investor earned that percentage as their total return. Total return is the more complete picture of how the investment performed.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price is not the same thing as NAV erosion, we use "erosion scores" to measure risk.

ASG has an erosion score of 75, which is labeled as "mild price erosion." There is no severe erosion-risk flag for this ETF.

Pros

• The three-year total return has been quite strong at approximately 35.16%.

• The fund offers a high distribution yield of approximately 9.22%.

Cons

• The one-year price return has been negative (approximately -9.89%).

• The five-year total return is currently negative at approximately -9.33%.

Beginner takeaway

When looking at ASG, notice the difference between price and total returns. For example, even when the share price went down this year, the total return remained positive because of the cash distributions. High yields can be helpful for income, but they do not guarantee that the share price will stay stable.