BlackRock Future Financial and Technology ETF (BPAY)

What this ETF is trying to do

The BlackRock Future Financial and Technology ETF (BPAY) focuses on companies involved in the future of finance and technology. It holds a variety of different stocks within this sector.

Top Holdings

Because the list provided is partial, these are only some of the largest companies held by the ETF:

• BlackRock Cash Funds Treasury SL Agency (7.84%)

• Chime Financial Inc Class A (5.06%)

• Global Payments Inc (4.79%)

• Capital One Financial Corp (4.10%)

• Kaspi.kz JSC ADS (4.08%)

• Robinhood Markets Inc Class A (3.94%)

• Block Inc Class A (3.93%)

• Fidelity National Information Services Inc (3.84%)

• Sea Ltd ADR (3.46%)

• eToro Group Ltd Class A (3.13%)

*Note: Holdings can change over time.*

What the numbers show

It is important to understand that "price return" and "total return" are different. Price return only tracks the change in the share price. Total return includes both the share price change and any distributions (cash payments) received.

• Year-to-Date (YTD): The price return is approximately -7.10%, while the total return is approximately -6.55%.

• One-Year: The price return was approximately -21.51%, while the total return was approximately -16.23%.

• Three-Year: The price return was approximately 23.07%, while the total return was approximately 33.47%.

To give you an idea of the price change, the estimated price from roughly one year ago was $32.13. The current price is $25.22.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 7.25%. This number describes the cash payments relative to the current ETF price. It is important to remember that a high yield does not mean an investor earned that same percentage as their total return.

The distributions for this ETF are described as irregular or less frequent, with two payouts recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets declines. While a falling market price does not always mean the NAV has declined, StockValueFinder uses an "erosion-risk score" to measure this risk.

BPAY has an erosion score of 55, which is labeled as "Moderate price erosion." This is a measurement of risk and not a definitive proof that the value has been destroyed.

Pros

• The ETF has shown a positive total return of approximately 33.47% over the last three years.

• It offers a distribution yield of approximately 7.25%.

Cons

• The ETF has experienced a share-price decline over the last year.

• There is a moderate erosion-risk score of 55.

Beginner takeaway

When looking at an ETF like BPAY, it is helpful to look at both the share price and the distributions. A high distribution yield can provide cash, but it is also important to watch the price return and the erosion-risk score to understand how the overall value of the investment is moving.