ETF Education Report: INVESCO S&P SPIN-OFF ETF (CSD)

What this ETF is trying to do

The INVESCO S&P SPIN-OFF ETF (ticker: CSD) is an exchange-traded fund that focuses on companies involved in "spin-offs." A spin-off is when a company splits off part of its business to create a new, independent company. This ETF holds a collection of these types of companies.

What the numbers show

The current price of one share is $129.91. Looking at the past, we can see how the price has moved:

• Year-to-Date (YTD): The price return is approximately 30.26%.

• One Year: The share-price return was approximately 36.71%.

• Three Years: The share-price return was approximately 138.27%.

It is important to know the difference between price return and total return. Price return only tracks how much the share price itself goes up or down. Total return includes both the price changes and any cash distributions (dividends) paid out.

For this ETF, the one-year total return was approximately 36.93%, which is slightly higher than the price return. Over three years, the total return was approximately 140.30%.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 0.12%. The data shows that distributions for this fund are "irregular," meaning they do not happen on a set schedule. In the last 12 months, there was one distribution recorded.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases significantly over time. StockValueFinder uses an "erosion-risk score" to help monitor this. For CSD, the erosion score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

This ETF holds 32 different companies. Because the list provided is partial, these are only the largest holdings in the portfolio:

• Honeywell Aerospace Inc (8.22%)

• Sandisk Corp Ordinary Shares (7.96%)

• GE Healthcare Technologies Inc (7.57%)

• Veralto Corp (7.53%)

• GE Vernova Inc (7.44%)

• Qnity Electronics Inc (7.41%)

• Ralliant Corp (4.60%)

• Crane Co (4.48%)

• Solventum Corp (4.40%)

• Fedex Freight Holding Co Inc (4.26%)

Please remember that holdings can change over time.

Pros

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

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

Cons

• The distribution yield is very low (approximately 0.12%).

• Distributions are irregular and do not happen frequently.

Beginner takeaway

When looking at an ETF, it is helpful to distinguish between the price of the share and the total return. While this ETF has seen significant growth in its share price, it does not provide a high amount of regular cash income. Always remember that past performance is not a guarantee of what will happen in the future.