ETF Education Report: Calamos Global Total Return Fund (CGO)

What this ETF is trying to do

The Calamos Global Total Return Fund (CGO) is an exchange-traded fund (ETF) listed on the NASDAQ. While the specific investment strategy is not detailed in the provided data, the fund's name suggests it focuses on providing total returns to its investors.

What the numbers show

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

• Price Return: This measures only the change in the share price. For CGO, the year-to-date (YTD) price return is approximately 12.99%. The one-year price return was about 5.41%, and the three-year price return was approximately 47.09%.

• Total Return: This is a more complete measure because it includes both the share price changes and the money paid out to investors through distributions. For CGO, the YTD total return is approximately 19.03%, the one-year total return was about 14.14%, and the three-year total return was approximately 90.66%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was $12.21, and the current price is $12.87.

Income and distribution explanation

Some investors look for ETFs that pay out cash regularly. This is called the distribution yield. CGO has a distribution yield of approximately 7.69%. Over the last 12 months, the fund has made 12 distributions, totaling $0.99 per share. These payments usually happen on a monthly basis, most often on a Friday.

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

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. Investors often care about this because they want their principal (the original money they put in) to remain stable.

For CGO, the data shows an erosion score of 100, which is labeled as "No price erosion detected." Additionally, there is no severe erosion-risk flag for this fund.

Pros

• The fund has shown positive price returns over the last year and three years.

• The total return figures are higher than the price return figures, meaning distributions have added value.

• The fund has a high income rating grade of "A."

Cons

• The provided data does not list any specific Top Holdings, so the exact companies owned by the fund are unknown from this report.

Beginner takeaway

When studying CGO, notice the difference between the share price movement and the total return. The total return is higher because it includes the cash distributions paid to investors. Always remember that while distributions provide income, they are separate from the growth of the share price itself.