ETF Education Report: STATE STREET(R) SPDR(R) S&P KENSHO CLEAN POWER ETF (CNRG)

What this ETF is trying to do

The CNRG ETF focuses on companies involved in clean power. It holds a variety of stocks related to renewable energy and utility services. Based on the top holdings provided, the fund includes companies like Arcosa Inc, Bloom Energy Corp, and GE Vernova Inc. Please note that these are only the top holdings and the full list can change over time.

What the numbers show

It is important to understand the difference between price return and total return. Price return only tracks how much the share price moves. Total return includes both the price change and any cash distributions (dividends) paid out.

• Year-to-Date (YTD): The price return is approximately -5.08%, while the total return is approximately -4.50%.

• One-Year: The price return was approximately -8.21%, and the total return was approximately -6.97%.

• Three-Year: The fund has seen growth over a longer period, with a price return of approximately 33.89% and a total return of approximately 39.39%.

• Five-Year: The five-year total return is approximately -3.91%.

An estimated price from roughly one year ago was $92.53, compared to the current price of $84.93.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The current distribution yield is approximately 1.50%. This means the cash paid out is about 1.50% of the ETF's price. The fund usually pays these out quarterly, with 4 payments recorded over the last 12 months. While distributions provide cash income, they are not the same as total return.

NAV erosion explanation

"NAV erosion" is a term used to describe a decline in the value of the fund's underlying assets. StockValueFinder uses an erosion-risk score to measure this risk. This ETF has an erosion score of 75, which is labeled as "Mild price erosion." While the share price has declined recently, a falling market price does not always mean the NAV itself is shrinking. There is no "severe erosion-risk flag" for this ETF.

Pros

• Long-term growth: The three-year total return shows significant positive growth of approximately 39.39%.

• Regular income: The fund provides regular cash distributions to investors.

Cons

• Recent price declines: Both the one-year and year-to-date price returns have been negative.

• Mild erosion risk: The fund has a score indicating mild price erosion.

Beginner takeaway

When looking at an ETF like CNRG, it is helpful to look at both the share price and the total return. High yields can provide cash, but they do not guarantee that the share price will stay stable. Always check if a fund's recent performance is based on just price changes or includes the value of distributions.