What this ETF is trying to do

This ETF is named the DoubleLine Mortgage ETF (ticker: DMBS). It is traded on the NYSE exchange. The provided data does not list the specific investment goal of the fund, but it identifies the asset type as an ETF.

What the numbers show

The current price for one share of DMBS is $46.31. An estimated price from roughly one year ago was about $49.63.

When looking at how this ETF has performed, it is important to look at two different types of returns:

• Price return: This only measures the change in the share price. For example, the one-year price return was approximately -6.70%, and the year-to-date (YTD) price return was about -6.74%.

• Total return: This includes both the share price change and any cash distributions paid to investors. The one-year total return was approximately -1.57%, and the YTD total return was about -2.81%.

Over a longer period, the three-year price return was about -0.94%, but the three-year total return was 15.15%.

Income and distribution explanation

This ETF has a distribution yield of approximately 5.65%. This means it pays out cash to investors relative to its share price. These payments are usually made every month, and there were 12 payments in the last year. It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return.

NAV erosion explanation

The fund has an erosion-risk score of 75, which is labeled as "mild price erosion." NAV erosion refers to a decline in the value of the underlying assets held by the ETF. While this ETF does not have a "severe erosion-risk flag," the mild label indicates that the share price has faced some downward pressure.

Pros

• The ETF provides regular monthly cash distributions.

• Over a three-year period, the total return was 15.15%.

Cons

• The share price has declined recently, as shown by the negative one-year and YTD price returns.

• The total return has also been negative over the last year.

Beginner takeaway

When looking at ETFs that pay cash, remember that a falling share price and a cash payment are two different things. A fund can pay out money (distributions) even if the share price is going down. To see the full picture of how much value you have gained or lost, always look at the "total return" rather than just the "price return."