What this ETF is trying to do

The STKD 100% BITCOIN & 100% GOLD ETF (BTGD) is an exchange-traded fund listed on the NASDAQ. This ETF is categorized as crypto-related. Based on its name and holdings, it seeks to provide exposure to both Bitcoin and gold.

What the numbers show

The recent data for BTGD shows a significant decline in share price. The current price is $27.45. To understand how much the price has changed, we can look at an estimated price from roughly one year ago, which was approximately $46.48.

Here is a breakdown of the performance:

• Year-to-Date (YTD) Price Return: -20.04%

• One-Year Price Return: -40.94%

• One-Year Total Return: -38.98%

It is important to distinguish between these numbers. The price return only measures the change in the share price itself. The total return includes the impact of distributions. In this case, the one-year total return was slightly higher than the price return, meaning distributions provided a small offset to the share-price decline.

Income and distribution explanation

BTGD has a distribution yield of approximately 4.21%. This number describes the cash distributions relative to the current ETF price. However, the distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months.

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

NAV erosion explanation

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, the fund has a severe erosion-risk flag. This means StockValueFinder's screening rules detected substantial price deterioration. The fund has an erosion score of 10, which is labeled as "severe price erosion." This indicates that the market price of the shares has dropped significantly.

Pros

• The ETF provides exposure to two different asset classes: Bitcoin and gold.

• It offers a distribution yield of approximately 4.21%.

Cons

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

• There is a severe erosion-risk flag due to price deterioration.

• Distributions are irregular and less frequent.

Beginner takeaway

BTGD is an ETF that connects investors to Bitcoin and gold, but it has recently faced heavy price declines. While it pays a distribution yield, the high level of price erosion is a key factor to note. Investors should remember that high yields can exist even when the share price is falling, and a falling price does not always mean the underlying value (NAV) has disappeared, though it does signal significant risk.