COREVALUES ALPHA GREATER CHINA GROWTH ETF (CGRO)

The COREVALUES ALPHA GREATER CHINA GROWTH ETF (ticker: CGRO) is designed to invest in growth-oriented companies located in the Greater China region. This means the fund looks for businesses that have the potential to expand quickly. Based on its top holdings, the fund includes well-known technology and retail companies like Tencent Holdings Ltd, Alibaba Group Holding Ltd ADR, and Xiaomi Corp Class B. It also holds interests in other industries such as robotics (Ubtech Robotics), electric vehicles (Tesla Inc), and coffee (Luckin Coffee Inc ADR).

What the numbers show

The data shows that CGRO has experienced a significant share-price decline recently. The estimated price from roughly one year ago was $32.04, while the current price is $16.33. Over the last year, the price return was approximately -49.01%. For the year so far (YTD), the price return is about -39.22%.

When we look at total returns—which include both the share-price change and any distributions paid out—the numbers are different from the price returns. The one-year total return was approximately -34.12%, and the YTD total return was approximately -23.37%. This shows that while the price of the shares has dropped, the distributions have offset some of that decline in the overall return calculation provided by the source data.

Income and distribution explanation

CGRO offers a very high distribution yield of 30.15%. However, it is important to understand how this works for new investors. The fund paid out 3 distributions over the last 12 months, but these payments occur on an irregular or less frequent basis. A very high distribution yield does not automatically mean that an investor's total return will be positive. It simply describes the amount of cash distributed relative to the current share price.

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 and an erosion score of 10, which indicates "Severe price erosion." This means that the share price has dropped significantly over time. While a falling market price is not always proof that the Net Asset Value (NAV) has declined, these measurements highlight a trend of significant price deterioration for this ETF.

Pros

• Provides exposure to major growth companies in China and other regions like Tesla.

• Offers a very high distribution yield for investors seeking cash income.

• Includes diverse holdings across tech, retail, and robotics.

Cons

• The share price has seen a sharp decline over the last year (nearly -50%).

• Distributions are irregular rather than following a steady schedule.

• The fund carries a severe erosion-risk flag due to its price history.

Beginner takeaway

CGRO is an ETF that targets growth in China but has faced a very difficult period with significant share-price declines. While it offers a high distribution yield, the total returns remain negative over both the YTD and one-year periods. Investors should look closely at the severe price erosion risk when considering how this fund fits into a portfolio.