What this ETF is trying to do

The TEUCRIUM 2X DAILY CORN ETF (ticker: CXRN) is an ETF that trades on the NYSE. This is a "leveraged" ETF. This means it is designed to aim for twice the daily performance of corn. Because it is leveraged, its price can move much faster than the actual price of corn.

What the numbers show

The current price of one share is $18.85. An estimated price from roughly one year ago was about $18.76.

When looking at how the price has changed over the last year, there are two different numbers to watch:

• One-year price return: This measures only the change in the share price, which was approximately 0.48%. If you had invested $10,000 in just the share price one year ago, it would be worth about $10,048 today.

• One-year total return: This includes both the share price change and the cash distributions. This was approximately 2.52%.

For the current year so far (Year-to-Date), the price return is -2.28%, while the total return is -0.94%.

Income and distribution explanation

This ETF provides cash payments to investors, known as distributions. These are usually paid out monthly, with 12 payments made over the last year. The distribution yield is approximately 2.04%.

It is very important to understand that a distribution yield is not the same as your total return. The yield tells you how much cash was paid out compared to the price, but it does not account for whether the share price went up or down.

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 94, which is described as "Stable / sideways." The severity of this risk is rated as "good," and there is no severe erosion-risk flag for this fund.

Pros

• The ETF provides regular cash distributions, usually on a monthly basis.

• The one-year total return was positive at approximately 2.52%.

Cons

• Because it is a leveraged ETF, the price can be very volatile (it moves up and down quickly).

• The year-to-date price return and total return are both currently negative.

Beginner takeaway

When you look at an ETF like this, always check both the "price return" and the "total return." The price return only tells you about the share price, while the total return shows you how the cash payments affect your overall result. Also, remember that leveraged funds move more intensely than standard funds.