ETF Education Report: Cabana Target Leading Sector Conservative ETF (CLSC)

What this ETF is trying to do

The Cabana Target Leading Sector Conservative ETF (ticker: CLSC) is an exchange-traded fund listed on the NASDAQ. While the specific investment strategy details are not provided in the data, ETFs like this generally aim to follow a specific set of rules to manage a portfolio of assets.

What the numbers show

The current price of CLSC is $19.28 (as of January 10, 2025). Looking at historical performance, we can see how the share price has moved over time:

• Year-to-Date (YTD) Price Return: The data shows a 0% change in the share price so far this year.

• One-Year Price Return: The share-price change over the last year is 0%. An estimated price from roughly one year ago was also $19.28.

• Three-Year Price Return: The share price has declined by approximately 21.39% over the last three years.

• Three-Year Total Return: When including distributions, the total return over the last three years is approximately -14.58%.

It is important to remember that "price return" only tracks the change in the share price, while "total return" includes the impact of any distributions paid out.

Income and distribution explanation

Based on the supplied data, this ETF has not made any cash distributions over the last 12 months. The distribution yield is 0%, and no payout frequency was detected. Because there were no distributions, the total return and price return figures reflect only the movement of the share price.

NAV erosion explanation

The data provides an erosion-risk score of 55, which is labeled as "Moderate price erosion." This is a measurement used to track how much the market price has declined.

"NAV erosion" refers to 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 dropped, a steady decline in share price can be a sign of price deterioration. In this case, the moderate erosion-risk measurement suggests the price has faced downward pressure over time.

Pros

• The ETF currently shows no recent price decline for the current year or the past year (0% return).

• There is no "severe erosion-risk flag" present in the data.

Cons

• The three-year price return shows a significant share-price decline of approximately 21.39%.

• The ETF has not provided any distribution income to investors over the last year.

Beginner takeaway

When looking at an ETF, it is important to look at both the share price and the total return. A falling share price can reduce the value of an investment. For those looking for income, a lack of distributions means there is no cash being paid out from the fund. Always remember that past performance, such as the three-year decline seen here, does not guarantee what will happen in the future.