Understanding the GMO Domestic Resilience ETF (DRES)

The GMO Domestic Resilience ETF (ticker: DRES) is an exchange-traded fund listed on the NYSE. This ETF focuses on a specific selection of companies, aiming to provide exposure to what its strategy defines as "domestic resilience."

What this ETF is trying to do

DRES invests in a portfolio of companies. Based on the provided data, the fund holds 41 total holdings. While the full list is not shown, its Top Holdings include:

• Union Pacific Corp (6.23%)

• Jacobs Solutions Inc (3.83%)

• Carlisle Companies Inc (3.76%)

• Fluor Corp (3.64%)

• ConocoPhillips (3.61%)

• Allegion PLC (3.50%)

• Northrop Grumman Corp (3.50%)

• Martin Marietta Materials Inc (3.47%)

• WillScot Holdings Corp Class A (3.47%)

• Huntington Ingalls Industries Inc (3.40%)

Please note that holdings can change over time.

What the numbers show

When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes the value of distributions).

• Year-to-Date (YTD): The YTD price return is approximately 11.69%. When including distributions, the YTD total return is approximately 12.25%.

• One-Year Performance: The one-year price return is approximately 12.79%. The one-year total return is approximately 13.61%.

To give you an idea of the price movement, the current price is $28.56. The estimated price from roughly one year ago was approximately $25.32.

Income and distribution explanation

This ETF provides cash distributions to investors. The current distribution yield is approximately 0.72%. The fund typically pays out on a quarterly basis, having made 4 payments over the last 12 months.

It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same as your total return.

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-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Positive Returns: Both the price return and total return have been positive over the last year.

• Low Erosion Risk: The data shows no detected price erosion and a "good" erosion severity rating.

Cons

• Limited Income: The distribution yield is relatively low at approximately 0.72%.

• Partial Data: The list of holdings provided is only a partial list of the 41 total companies in the fund.

Beginner takeaway

The DRES ETF has shown growth in both its share price and its total return over the past year. While it provides some quarterly income, its primary recent performance has been driven by price increases rather than high distributions.