What this ETF is trying to do

The ADVISORSHARES FOCUSED EQUITY ETF (ticker: CWS) is an exchange-traded fund (ETF). This means it is a collection of different stocks that investors can buy and sell on the stock market. Instead of buying every company in the market, this ETF focuses on a specific group of companies to provide exposure to those businesses.

What the numbers show

The current price of this ETF is $67.78. To understand how it has performed, we look at different types of returns over various periods of time.

For the past year, the one-year price return was -0.75%. This number only measures the change in the share price. However, the one-year total return was -0.45%. The total return is a different measure because it includes distributions (like cash payments) along with the share-price movement.

Looking at longer periods, the three-year price return was 30.50%, and the three-year total return was 31.97%. Over five years, the total return was 45.88%. So far this year (year-to-date), both the price return and the total return are -1.38%.

To help visualize the one-year share-price decline: if you had $10,000 worth of shares roughly one year ago when the estimated price was $68.29, your investment would be worth about $9,925 today at the current price of $67.78.

Income and distribution explanation

This ETF has a distribution yield of 0.31%. This percentage describes the cash distributions the fund pays out relative to its share price. The trailing distributions were $0.21, and these payments happen on an irregular or less frequent basis. It is important for new investors to know that a high distribution yield does not automatically mean an investor earned that amount as a total return; you must always look at the total return figure to see the full picture.

NAV erosion explanation

NAV erosion is a term used to describe when the value of the underlying assets in a fund decreases over time. StockValueFinder uses an erosion score to measure this risk. This ETF has an erosion score of 94, which is labeled as "Stable / sideways" with a "good" severity rating. There is no severe erosion-risk flag for this fund, meaning its price trend and erosion score did not trigger a warning of substantial price deterioration.

Pros

• The fund has shown positive total returns over the three-year and five-year periods.

• It has a "good" erosion severity rating, which suggests the value of the assets has remained relatively stable.

Cons

• The ETF has experienced a share-price decline over the last year and during the current year-to-date period.

Beginner takeaway

This ETF shows different results depending on how far back you look at the data. While it has seen growth over three to five years, its share price has dipped slightly over the past 12 months. When looking at an ETF, it is helpful to compare the price return (the change in share price) with the total return (which includes distributions) to see how the investment is moving overall.