Share-split context: A reverse split was recorded on Sep 5, 2025 with coefficient 0.125. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: QUADRATIC DEFLATION ETF (BNDD)

What this ETF is trying to do

The QUADRATIC DEFLATION ETF (BNDD) is an exchange-traded fund traded on the NYSE. While the specific investment goals are not listed in the provided data, it is categorized as a standard ETF and is not a leveraged or inverse fund.

What the numbers show

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

Because this ETF has a history of reverse splits, we use split-adjusted returns to look at performance. In a reverse split, multiple old shares are combined into fewer new shares, which causes the price per share to rise mechanically.

Here is how the performance looks:

• Year-to-Date (YTD): The price return is approximately -2.10%. However, the YTD total return is positive at about 0.59%.

• One Year: The price return was approximately -5.84%, while the one-year total return was approximately -2.38%.

• Three Year: The price return was approximately -14.58%, while the three-year total return was approximately -4.22%.

• Five Year: The five-year total return was approximately -17.95%.

Income and distribution explanation

This ETF provides cash distributions to investors. The current distribution yield is approximately 3.77%. These payments usually happen monthly, and the most common day for a distribution is Thursday. Over the last 12 months, there were 12 payouts totaling approximately $3.54 per share.

It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" is a term used to describe a decline in the value of the fund's underlying assets. StockValueFinder uses an "erosion-risk score" to measure this risk.

BNDD has an erosion score of 75, which is labeled as "Mild price erosion." This is a measurement of risk and does not necessarily prove that the fund's value has collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The fund provides regular monthly cash distributions.

• The YTD total return is currently positive (0.59%), even though the share price itself has declined.

Cons

• The ETF has shown a decline in share price over the one-year and three-year periods.

• The five-year total return is negative.

• There is a "mild" erosion-risk score of 75.

Beginner takeaway

When looking at BNDD, notice that the share price and the total return are different numbers. For example, this year the share price went down, but the total return was slightly up because of the cash distributions. Always look at the total return to see how much value was actually gained or lost, and remember that distributions provide cash but do not protect the original investment from price declines.