What this ETF is trying to do

The Counterpoint Quantitative Equity ETF (CPAI) is an exchange-traded fund listed on the NYSE. This ETF uses a quantitative strategy to invest in various companies. Based on its top holdings, the fund has exposure to several technology and industrial sectors, including companies like Everpure Inc Class A, Astera Labs Inc, and Hewlett Packard Enterprise Co.

What the numbers show

The data shows that CPAI has experienced significant share-price growth recently.

• Year-to-Date (YTD) Price Return: The share price has increased by approximately 32.92% since the start of the year.

• One-Year Price Return: The share price has grown by approximately 36.21% over the last year.

• One-Year Total Return: When including distributions, the total return for the last year was approximately 37.42%.

To put this in perspective, the estimated price from roughly one year ago was $39.13. The current price is $53.30.

Income and distribution explanation

CPAI provides some level of cash distributions to investors, but they are not frequent. The distribution yield is approximately 0.67%. This means the cash paid out is small relative to the ETF's price.

The distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. It is important to remember that a distribution yield is not the same as total return. Total return includes both the change in share price and any cash distributions received.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be a sign of erosion, it is not proof of it.

In the case of CPAI, the supplied data shows an erosion-risk score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. However, 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.

Pros

• Strong Price Growth: The ETF has shown high price returns over the last year and year-to-date.

• Low Erosion Risk: The current data indicates no detected price erosion.

Cons

• Irregular Income: Distributions are not frequent, which may not suit investors looking for steady, regular cash flow.

• Partial Data: The list of top holdings is only a partial view of the total 51 holdings in the fund.

Beginner takeaway

CPAI has recently seen strong growth in its share price. While it does pay distributions, the yield is relatively low and the payments do not happen on a regular schedule. Investors should distinguish between the price return (how much the share price went up) and the total return (the price change plus any cash received).