What this ETF is trying to do

The PRINCIPAL REAL ESTATE ACTIVE OPPORTUNITIES ETF (ticker: BYRE) is designed to give investors exposure to the real estate market. It focuses on active opportunities within various types of property and real estate companies.

What the numbers show

To understand how this ETF has performed, we can look at its share-price return and its total return. The current price of the ETF is $25.88. This is higher than the estimated price from roughly one year ago, which was $24.79.

Here is a breakdown of the performance based on the supplied data:

• One-Year Price Return: Approximately 4.38%. This measures only the change in the share price over the last year.

• One-Year Total Return: Approximately 7.47%. This figure includes both the share-price movement and any distributions paid out.

• Three-Year Price Return: Approximately 24.30%.

• Three-Year Total Return: Approximately 34.41%.

• Year-to-Date (YTD) Price Return: Approximately 5.79%.

• Year-to-Date (YTD) Total Return: Approximately 8.06%.

Income and distribution explanation

This ETF provides cash distributions to its investors, which usually happen on a quarterly basis (four times a year). The distribution yield is approximately 2.90%.

It is important for new investors to know that the distribution yield is not the same as the total return. While these distributions provide cash income, they do not guarantee that the original investment amount will stay the same. A high distribution yield can exist even if the share price of the ETF goes down.

NAV erosion explanation

NAV stands for "Net Asset Value." It represents the value of the underlying assets held by the ETF. Sometimes, an ETF's market price might drop because the actual value of its assets is decreasing; this is called "NAV erosion."

For BYRE, StockValueFinder uses an erosion-risk score to measure this risk. The current erosion-risk score is 94, which is labeled as "Stable / sideways," and the severity is rated as "good." There is no severe erosion-risk flag for this ETF.

Pros

• The ETF has shown positive price returns over the last year, three years, and the current year.

• It provides a regular distribution yield for investors seeking cash income.

• The erosion-risk score is currently rated as "good."

Cons

• Real estate investments can be subject to market changes that affect the share price.

• Distributions provide income but do not automatically protect the principal (the money originally invested).

Beginner takeaway

BYRE is an ETF that invests in real estate. It has shown growth in both its share price and its total return over a three-year period. Investors should remember to look at both the price return and the total return to get a full picture of how the fund is moving.