ETF Education Report: ABRDN Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (BCD)

What this ETF is trying to do

The ABRDN Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (ticker: BCD) is an exchange-traded fund listed on the NYSE. While the specific holdings are not listed in this report, this type of ETF generally focuses on commodity-related strategies.

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.

For BCD, the numbers show different results depending on which you look at:

• Year-to-Date (YTD): The YTD price return is approximately 25.58%. In this specific case, the YTD total return is also 25.58%.

• One Year: The one-year price return is approximately 11.28%. However, the one-year total return is higher at approximately 30.15%. This shows that distributions added to the overall value.

• Three Years: The three-year price return is approximately 19.78%, while the three-year total return is much higher at approximately 51.80%.

To visualize the price change, an investor could look at the estimated price from roughly one year ago, which was approximately $34.94, compared to the current price of $38.88.

Income and distribution explanation

This ETF has a distribution yield of approximately 13.71%. This number describes the cash distributions relative to the ETF's price. It is important to remember that a high distribution yield is not the same thing as total return.

The distributions for this fund are described as "irregular" or "less frequent," with one payout recorded in the last 12 months. While these payments provide cash income, they do not guarantee that your original investment (the principal) will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. StockValueFinder uses an "erosion-risk score" to measure this risk. For BCD, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

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

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

• It has a high income rating grade of "A."

Cons

• The distributions are irregular and less frequent, which means you cannot always count on a steady schedule of cash payments.

• The fund's top holdings are not currently provided in this data set.

Beginner takeaway

When looking at BCD, it is helpful to notice that the total return is higher than the price return. This happens because the fund pays out cash distributions. While the high distribution yield provides income, investors should always look at both price movement and total return to see the full picture of how an ETF is performing.