ETF Education Report: BLUEMONTE CORE BOND ETF (BDBT)

What this ETF is trying to do

The BLUEMONTE CORE BOND ETF (ticker: BDBT) is an exchange-traded fund listed on the NYSE. While the specific investment strategy is not detailed in the provided data, its name suggests it focuses on core bond investments.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes both the price change and any cash distributions paid out to investors.

Based on the data as of October 2, 2026:

• Year-to-Date (YTD): The price return is approximately -5.19%. However, the YTD total return is approximately -2.67%.

• One-Year Performance: The one-year price return is approximately -5.90%. The one-year total return is approximately -2.14%.

To visualize the price change, we can look at an estimated example. The estimated price from roughly one year ago was $25.61. The current price is $24.10.

Income and distribution explanation

Some investors look at ETFs for regular cash payments, known as distributions. This ETF has a distribution yield of approximately 4.09%. The trailing distributions over the last year totaled approximately $0.99 per share. These payments usually happen monthly, and in the last 12 months, there were 11 payouts.

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 measurement of how the investment performed.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. While a falling market price does not always mean the NAV has declined, we can look at "erosion-risk scores" to see how much the price has been dropping.

BDBT has an erosion score of 75, which is labeled as "mild price erosion." This means the fund has experienced some level of share-price decline. However, there is no "severe erosion-risk flag" for this ETF.

Pros

• The ETF provides regular cash distributions (usually monthly).

• It has a distribution yield of approximately 4.09%.

Cons

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

• Both the price return and total return have been negative for the year-to-date period and the one-year period.

• The income rating grade is a "D."

Beginner takeaway

When evaluating an ETF like BDBT, it is helpful to look at both the price and the distributions. While the fund pays out cash regularly, the share price itself has been falling. Always check the "total return" to see how much of the value was lost or gained after including those cash payments.