ETF Education Report: CONCOURSE CAPITAL FOCUSED EQUITY ETF (CCFE)

What this ETF is trying to do

The CONCOURSE CAPITAL FOCUSED EQUITY ETF (ticker: CCFE) is an exchange-traded fund listed on the NASDAQ. This ETF holds a variety of different companies in its portfolio. Based on the top holdings provided, it includes companies like First American Government Obligs X and Cooper-Standard Holdings Inc. Please note that the list of holdings is only a partial view of the total 26 companies held by this fund, and these 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 CCFE, the year-to-date (YTD) price return is approximately -8.91%. The one-year price return is approximately -14.15%.

• Total Return: This includes the share price change plus any distributions (cash payments) made to investors. The YTD total return is approximately -8.91%, and the one-year total return is approximately -14.13%.

To visualize this, we can look at the estimated price from roughly one year ago, which was $28.07. The current price is $24.10.

Income and distribution explanation

Some investors look at ETFs for income. The distribution yield for CCFE is approximately 2.08%. This number describes the cash distributions relative to the ETF's price. It is important to remember that a distribution yield is not the same as a total return. Also, distributions are paid out irregularly, with only one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" is a term used to describe a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price does not always mean the NAV has declined, we can look at "erosion-risk scores" to see how a fund is behaving.

CCFE has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk regarding how the price has moved, rather than a definitive proof that the fund's underlying value has collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The fund provides exposure to a diverse list of companies across different sectors.

• It has a recorded distribution yield, which provides some cash income to investors.

Cons

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

• The income rating for this fund is a "D" grade, with an income rating score of 54.

• The distribution frequency is irregular and less frequent.

Beginner takeaway

When studying CCFE, it is helpful to distinguish between the share price and the total return. While the fund pays a distribution yield, the share price has decreased over the past year. Investors should always remember that high yields can sometimes exist even when a share price is falling, and looking at the total return provides a more complete picture of performance.