DAK: DAKOTA ACTIVE EQUITY ETF
ETF Education Report: Dakota Active Equity ETF (DAK)
What this ETF is trying to do
The Dakota Active Equity ETF (ticker: DAK) is an exchange-traded fund listed on the NASDAQ. It holds a variety of different investments. Based on its top holdings, it includes large companies like Apple Inc and Alphabet Inc, as well as other funds like the iShares Core S&P 500 ETF. This list is partial, meaning there are more holdings in the fund that are not shown here.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only how much the share price has changed.
• Total Return: This includes both the change in share price AND any cash distributions (dividends) paid out to investors.
For DAK, the numbers show:
• Year-to-Date (YTD): The price return is approximately 13.70%, while the total return is approximately 14.38%.
• One-Year: The price return is approximately 15.16%, while the total return is approximately 16.17%.
To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $26.30, and the current price is $30.29.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. DAK has a distribution yield of approximately 0.795%. This means the cash paid out is about 0.795% of the ETF's price. The fund usually pays these out quarterly, and it has made 4 payments in the last 12 months. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. Some investors worry about this because they want their original investment to stay stable. For DAK, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The fund has shown positive price returns and total returns over the last year.
• It has a high income rating grade of "A."
Cons
• The list of top holdings is only a partial view of the total 171 holdings in the fund.
• Holdings can change over time, so the current list may not stay the same.
Beginner takeaway
When studying DAK, notice that the total return is higher than the price return. This happens because the total return accounts for the cash distributions paid to investors. Always remember that while distributions provide cash, they are different from the overall growth of the share price.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | APPLE INC | AAPL | 5.66% |
| 2 | ALPHABET INC CLASS C | GOOG | 3.74% |
| 3 | ISHARES CORE S&P 500 ETF | IVV | 3.74% |
| 4 | VANGUARD S&P 500 ETF | VOO | 3.46% |
| 5 | ANALOG DEVICES INC | ADI | 2.91% |
| 6 | JPMORGAN CHASE & CO | JPM | 2.77% |
| 7 | ADVANCED MICRO DEVICES INC | AMD | 2.76% |
| 8 | MICROSOFT CORP | MSFT | 2.72% |
| 9 | INVESCO QQQ TRUST | QQQ | 2.58% |
| 10 | NVIDIA CORP | NVDA | 2.39% |