Understanding the MADISON DIVIDEND VALUE ETF (DIVL)

The MADISON DIVIDEND VALUE ETF (ticker: DIVL) is an exchange-traded fund designed to focus on dividend-paying companies. Based on its name and holdings, it seeks to provide exposure to stocks that may offer value through dividends.

What this ETF is trying to do

This ETF invests in a variety of companies. According to the provided data, it holds 39 total companies. Its strategy involves selecting stocks that are often associated with "value" and dividend payments.

Top Holdings:

The following is a partial list of the largest companies held by the fund (holdings can change over time):

• Johnson & Johnson (JNJ): 5.42%

• Chevron Corp (CVX): 5.22%

• ExxonMobil Holdings Corp (XOM): 5.21%

• AbbVie Inc (ABBV): 3.85%

• CME Group Inc Class A (CME): 3.79%

• Analog Devices Inc (ADI): 3.61%

• NextEra Energy Inc (NEE): 3.61%

• ConocoPhillips (COP): 3.58%

• Union Pacific Corp (UNP): 3.50%

• Procter & Gamble Co (PG): 3.44%

What the numbers show

When looking at how an ETF performs, it is important to distinguish between price return (the change in the share price) and total return (which includes both price changes and distributions).

• Year-to-Date (YTD): The YTD price return is 8.22%, while the YTD total return is 9.63%.

• One-Year: The one-year price return is 8.41%, while the one-year total return is 10.41%.

• Three-Year: The three-year price return is 31.30%, while the three-year total return is 39.70%.

An estimated price from roughly one year ago was $22.87, compared to the current price of $24.79.

Income and distribution explanation

This ETF provides regular cash payments to investors. The distribution yield is 1.79%. This number describes the cash distributions relative to the ETF's price. It is important to remember that a yield figure is not the same as a total return.

The fund usually pays out on a monthly basis, having made 12 payments over the last year. Most of these distributions have historically occurred on Wednesdays.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price erosion (the decline in the market price of the shares), the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Pros

• Positive Returns: Both price returns and total returns have been positive over the one-year and three-year periods.

• Regular Income: The fund offers a monthly distribution frequency.

• Low Price Erosion Risk: The data shows no detected price erosion.

Cons

• Yield Level: The distribution yield of 1.79% may be considered low depending on an investor's specific income needs.

• Partial Data: The list of holdings provided is only a partial view of the full portfolio.

Beginner takeaway

The MADISON DIVIDEND VALUE ETF (DIVL) has shown growth in both its share price and its total return over the last three years. It provides monthly distributions, though the yield is relatively modest at 1.79%. While it is important to watch for price stability, the current data shows no signs of price erosion.