Understanding the AAM BRENTVIEW DIVIDEND GROWTH ETF (BDIV)

The AAM BRENTVIEW DIVIDEND GROWTH ETF (ticker: BDIV) is an exchange-traded fund designed to focus on dividend growth. This means the fund looks for companies that pay out cash to their shareholders.

What this ETF is trying to do

BDIV invests in a variety of companies. Based on its top holdings, the fund has exposure to large technology companies like Microsoft and Apple, as well as financial and energy companies. The goal is to provide investors with a way to participate in dividend-paying stocks.

Top Holdings:

• Microsoft Corp (7.63%)

• Apple Inc (6.47%)

• Invesco Short-Term Inv Gov&Agcy Instl (4.90%)

• Broadcom Inc (4.63%)

• Alphabet Inc Class A (4.18%)

• JPMorgan Chase & Co (3.83%)

• Chevron Corp (3.72%)

• Trane Technologies PLC Class A (3.60%)

• Philip Morris International Inc (3.55%)

• Johnson & Johnson (3.42%)

*Note: This list is partial and holdings can change over time.*

What the numbers show

When looking at how this ETF has performed, it is important to distinguish between price return and total return. Price return only tracks the change in the share price. Total return includes both the price change and the dividends paid out.

• Year-to-Date (YTD): The price return is approximately 9.14%, while the total return is approximately 10.53%.

• One-Year: The price return was approximately 9.63%, while the total return was approximately 11.41%.

An estimated price from roughly one year ago was $22.65, compared to the current price of $24.83.

Income and distribution explanation

BDIV provides regular cash payments to investors. The distribution yield is approximately 1.55%. This number describes the cash distributions relative to the ETF's price. The fund usually pays out monthly, with 12 payments recorded over the last year.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price movement, the fund has an erosion-risk score of 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Positive Returns: Both the share price and the total return have shown growth over the last year.

• Regular Income: The fund offers a monthly distribution frequency.

• Low Price Risk Score: The erosion-risk measurements suggest the share price is not showing signs of deterioration.

Cons

• Limited Yield: The distribution yield of 1.55% may be considered low for investors seeking very high immediate income.

Beginner takeaway

BDIV is an ETF that focuses on dividend growth. It has shown both price increases and total returns over the past year. While it provides monthly distributions, investors should remember that a distribution yield is not the same as total return. Always look at both the share price movement and the dividends paid to see the full picture of how an investment is performing.