BLUEMONTE LARGE CAP CORE ETF (BLUC) Educational Report

What this ETF is trying to do

The BLUEMONTE LARGE CAP CORE ETF (ticker: BLUC) is an exchange-traded fund designed to provide exposure to large-cap stocks. Based on its top holdings, the fund includes significant positions in major index funds like the State Street SPDR S&P 500 ETF and the Vanguard MStar Growth ETF.

What the numbers show

The data shows that BLUC has experienced growth in both its share price and its total return over the past year.

• Year-to-Date (YTD): The price return is approximately 13.98%. When including distributions, the YTD total return is approximately 14.36%.

• One-Year Performance: The one-year price return is approximately 15.40%. The one-year total return is approximately 16.00%.

It is important to note that "price return" only tracks the change in the share price, while "total return" includes the value of distributions paid out to investors.

Income and distribution explanation

BLUC provides a distribution yield of approximately 0.46%. This represents the cash distributions relative to the current ETF price. The fund typically pays out on a quarterly basis, with 4 distributions recorded over the last 12 months. The most common day for these distributions to occur is Friday.

NAV erosion explanation

Some investors look for "NAV erosion," which refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). 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 erosion (the decline in the market price of the shares), the fund has an erosion score of 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Positive Returns: The fund has shown positive price and total returns over the last year.

• Low Erosion Risk: The erosion-risk score indicates no price erosion has been detected.

• Income Rating: The fund has an income rating grade of "A" with a score of 81.

Cons

• Limited Holdings: The fund has a small number of total holdings (4), which means the performance is heavily dependent on a few specific funds.

• Lower Yield: The distribution yield of 0.46% is relatively low compared to high-income seeking strategies.

Beginner takeaway

BLUC is a large-cap ETF that has recently seen its share price and total returns increase. While it provides some income through quarterly distributions, its primary movement has been driven by share-price appreciation. Because it holds a small number of large funds, its performance will closely follow those specific holdings.