ETF Education Report: ETC CABANA TARGET LEADING SECTOR MODERATE ETF (CLSM)

What this ETF is trying to do

The ETC CABANA TARGET LEADING SECTOR MODERATE ETF (ticker: CLSM) is an exchange-traded fund designed to target specific sectors. Based on its top holdings, the fund has significant exposure to technology and consumer staples sectors, as well as gold.

What the numbers show

The current price of CLSM is $28.25. When looking at how the share price has moved, we can see different levels of performance:

• Year-to-Date (YTD): The price return is approximately 21.58%.

• One-Year: The price return is approximately 21.27%.

• Three-Year: The price return is approximately 43.55%.

It is important to distinguish between price return and total return. Price return only tracks the change in the share price. Total return includes both the price change and any distributions (cash payments) made to investors.

For CLSM, the total return figures are higher than the price return figures. For example, the one-year total return is approximately 22.35%, while the one-year price return is 21.27%. Over three years, the total return was approximately 51.73%, compared to a price return of 43.55%.

Income and distribution explanation

CLSM provides a distribution yield of approximately 0.74%. This represents the cash distributions relative to the ETF price. The trailing distributions are approximately $0.21.

The distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. Investors looking for steady, regular income should note that this fund does not pay out on a consistent monthly or quarterly schedule.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). 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, regarding price erosion (the decline in the market price of the shares), the fund has an erosion score of 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

The fund's portfolio includes the following holdings:

• STATE STREET® TECHSELSECTSPDR® ETF (XLK): 35.26%

• INVESCO NASDAQ 100 ETF (QQQM): 31.14%

• STATE STREET® CNSMRSTPSELSECTSPDR® ETF (XLP): 25.80%

• GOLDMAN SACHS PHYSICAL GOLD ETF (AAAU): 7.44%

Pros

• The fund has shown positive price returns over the one-year and three-year periods.

• The erosion-risk measurement is rated as "good."

Cons

• The distribution frequency is irregular rather than consistent.

• The distribution yield is relatively low at approximately 0.74%.

Beginner takeaway

CLSM has experienced share-price growth over the last year and three years. While it does pay distributions, they are not frequent. When researching this ETF, remember that total return is the most complete way to see how much value was created, as it combines both price changes and cash distributions.