Understanding the IMGP DBI Managed Futures Strategy ETF (DBMF)

What this ETF is trying to do

The IMGP DBI Managed Futures Strategy ETF, known by its ticker symbol DBMF, is an exchange-traded fund (ETF) traded on the NYSE. While the specific holdings are not listed in this report, managed futures strategies generally aim to follow different market trends.

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 DBMF, the numbers show growth in both areas:

• Year-to-Date (YTD): The price return is approximately 18.14%, while the total return is higher at approximately 19.74%.

• One Year: The price return is approximately 17.59%, and the total return is approximately 24.13%.

• Three Years: The price return is approximately 15.67%, and the total return is approximately 35.21%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was about $28.19, and the current price is $33.15.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. DBMF has a distribution yield of approximately 4.78%. This means the cash paid out is about 4.78% of the ETF's price. These distributions usually happen quarterly, and there were 4 payouts in the last 12 months.

It is important to remember that a high distribution yield is not the same thing as total return. Total return tells you the full picture of how much value was gained, including those cash payments.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases significantly over time. StockValueFinder uses an "erosion-risk score" to measure this risk. For DBMF, the erosion score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The ETF has shown positive price returns over the last year and three years.

• The total return is higher than the price return, meaning distributions have added value to the overall performance.

• The erosion-risk measurement is considered "good."

Cons

• The report does not list any specific top holdings, so the exact companies or assets inside the fund are not identified here.

Beginner takeaway

When studying DBMF, notice the difference between the share price movement and the total return. Because this ETF pays distributions, the total return is higher than the price return alone. Always remember that while distributions provide cash, they are separate from the growth of the share price itself.