ETF Education Report: BAHL & GAYNOR INCOME GROWTH ETF (BGIG)

What this ETF is trying to do

The BAHL & GAYNOR INCOME GROWTH ETF (BGIG) is an exchange-traded fund listed on the NYSE. Based on its name and data, it focuses on providing income growth for investors. It holds a variety of different companies in its portfolio to achieve this goal.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: 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 to investors.

For BGIG, the numbers show growth in both areas:

• Year-to-Date (YTD): The price return is approximately 11.42%, while the total return is approximately 12.92%.

• One Year: The price return is approximately 11.44%, while the total return is approximately 13.47%.

• Three Years: The price return is approximately 53.12%, while the total return is approximately 62.90%.

To give you an idea of price movement, the current price is $36.05. The estimated price from roughly one year ago was approximately $32.35.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The distribution yield is currently approximately 1.72%. This number describes the cash paid out relative to the ETF's price.

BGIG usually pays distributions monthly, with 12 payouts recorded over the last year. Most of these payments have historically occurred on Thursdays. It is important to remember that a distribution yield tells you about cash income, but it is not the same thing as total return.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly over time. StockValueFinder uses an erosion-risk score to help monitor this.

For BGIG, the erosion score is 100, and the label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Top Holdings

The following are the top holdings in this ETF (note that this is a partial list):

• Microsoft Corp (4.83%)

• UnitedHealth Group Inc (4.49%)

• Broadcom Inc (4.47%)

• Taiwan Semiconductor Manufacturing Co Ltd ADR (4.44%)

• Johnson & Johnson (4.21%)

• AbbVie Inc (4.15%)

• PNC Financial Services Group Inc (3.96%)

• Apollo Global Management Inc (3.49%)

• Eli Lilly and Co (3.38%)

• JPMorgan Chase & Co (3.11%)

*Holdings can change over time.*

Pros

• The ETF has shown positive price returns and total returns over the last year and three years.

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

Cons

• The distribution yield is relatively low compared to some other income-focused funds.

Beginner takeaway

When looking at BGIG, notice that the total return is higher than the price return. This happens because the total return accounts for the extra cash paid out through distributions. Always look at both numbers to see the full picture of how an investment has performed.