Understanding the Themes Humanoid Robotics ETF (BOTT)

What this ETF is trying to do

The THEMES HUMANOID ROBOTICS ETF, which uses the ticker symbol BOTT, is an exchange-traded fund focused on the robotics industry. It holds a variety of companies involved in humanoid robotics technology. Because this is a partial list, we can only see some of the companies it owns. Some of its top holdings include:

• Rainbow Robotics Ordinary Shares (5.48%)

• NVIDIA Corp (5.02%)

• Ecovacs Robotics Co Ltd Class A (4.95%)

• Richtech Robotics Inc Class B Common Stock (4.79%)

• Yijiahe Technology Co Ltd Class A (4.75%)

• Yujin Robot Co Ltd (4.75%)

• Palladyne AI Corp Class A (4.67%)

• Teradyne Inc (4.62%)

• Ningbo Pia Automation Holding Corp Class A (4.51%)

• Ubtech Robotics Corp Ltd Ordinary Shares Class H (4.46%)

Please remember that holdings can change over time.

What the numbers show

When looking at how an ETF performs, it is important to look at two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price. For BOTT, the year-to-date (YTD) price return is approximately 2.10%. The one-year price return was approximately 4.27%.

• Total Return: This includes the share price change plus any distributions (cash payments) made to investors. The YTD total return is approximately 2.10%. The one-year total return was approximately 4.43%.

Based on an estimated price from roughly one year ago of $41.77, the current price is $43.56.

Income and distribution explanation

Some investors look for "income," which is cash paid out by the ETF. BOTT has a distribution yield of approximately 0.13%. This means the cash distributions are very small compared to the price of the ETF. The data shows that distributions for this fund are irregular or happen less frequently, with only one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases. It is important to know that a falling share price does not always mean the NAV is eroding.

For BOTT, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag present.

Pros

• The ETF has shown positive price returns both year-to-date and over the last year.

• The erosion-risk measurements suggest the fund is currently stable.

Cons

• The distribution yield is very low (0.13%), meaning it does not provide much regular cash income.

• The distribution frequency is irregular.

Beginner takeaway

When studying BOTT, it is helpful to distinguish between the share price and the total return. While the share price has grown over the last year, the total return is slightly higher because it accounts for distributions. Always remember that a high yield or a specific price movement does not tell the whole story of an investment's value.