ETF Education Report: ASMG

What this ETF is trying to do

The LEVERAGE SHARES 2X LONG ASML DAILY ETF (ASMG) is a specialized type of fund. It is a leveraged ETF, which means it is designed to move in a different way than standard funds. This specific fund focuses on providing returns that are related to the daily performance of a specific asset.

What the numbers show

The current price of ASMG is $52.73. Looking at the past year, we can see how the share price has moved.

• Price Return: This measures only the change in the share price. The one-year price return was approximately 113.32%. The year-to-date (YTD) price return was approximately 133.43%.

• Total Return: This is a different measurement that includes both price changes and distributions. The one-year total return was approximately 137.02%. The YTD total return was approximately 133.43%.

To visualize the price change, imagine you had a share roughly one year ago. The estimated price from roughly one year ago was $24.72. Since then, the price has grown to its current level of $52.73.

Income and distribution explanation

Some investors look for "distributions," which are cash payments made by the fund. ASMG has a distribution yield of approximately 4.80%. This means the cash distributed is about 4.80% of the ETF's price. The trailing distributions were $2.53.

It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they are separate from the growth of the share price itself. In this fund, the distributions happen on an irregular or less frequent basis.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. StockValueFinder uses an "erosion-risk score" to help measure this risk. For ASMG, the erosion score is 100, and the label is "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The fund has shown significant positive price returns over the last year and year-to-date.

• The total return is higher than the price return over the last year, meaning distributions added to the overall value.

Cons

• This is a leveraged ETF, which typically involves higher complexity and different movement patterns than standard ETFs.

• Distributions are irregular, meaning they do not happen on a set schedule.

Beginner takeaway

When looking at ASMG, it is helpful to distinguish between the price return (how much the share price went up) and the total return (the price change plus any cash distributions). While this fund has shown strong growth recently, always remember that leveraged funds behave differently than traditional investments.