ETF Education Report: Cabana Target Leading Sector Aggressive ETF (CLSA)

What this ETF is trying to do

The Cabana Target Leading Sector Aggressive ETF (ticker: CLSA) is an exchange-traded fund listed on the NASDAQ. While the specific investment strategy is not detailed in the provided data, it is categorized as an ETF.

What the numbers show

When looking at how this ETF has performed, it is important to distinguish between price return and total return.

• Price Return: This measures only the change in the share price. Over the last three years, the three-year price return was approximately -25.17%.

• Total Return: This measures the overall return, including any distributions. The three-year total return was approximately -21.58%.

As of January 10, 2025, the current price is $19.38. The estimated price from roughly one year ago was also $19.38, resulting in a one-year price return of 0%. The year-to-date (YTD) price return and total return are also 0%.

Income and distribution explanation

Some investors look for ETFs that pay out cash regularly. This is called a distribution yield. For CLSA, the distribution yield is 0%. No distributions were detected over the last 12 months.

NAV erosion explanation

This ETF has a severe erosion-risk flag. StockValueFinder uses an "erosion-risk score" to measure how much a share price has deteriorated. This ETF has an erosion score of 30, which is labeled as "Significant price erosion" with a severity level of "significant."

It is important to understand what NAV erosion means. NAV stands for Net Asset Value, which is the actual value of the assets held by the fund. While a falling market price is a "share-price decline," significant and lasting drops in price can be a sign of erosion risk. When an ETF's share price falls significantly over time, it can be difficult for the fund to recover its original value.

Pros

• The ETF is listed on a major exchange (NASDAQ).

Cons

• Price Decline: The fund has experienced a significant three-year price return decline of approximately -25.17%.

• Erosion Risk: The fund has a severe erosion-risk flag and a significant erosion-risk score.

• No Income: There have been no distributions detected in the last 12 months.

Beginner takeaway

When studying ETFs, always look at both price return and total return. This ETF has shown a significant decline in share price over the last three years. Additionally, because it carries a severe erosion-risk flag, investors should be aware that the share price has experienced significant deterioration. Always remember that a lack of distributions means there is no cash income being generated by this fund based on the current data.