ETF Education Report: Doubleline Income Solutions Fund (DSL)

What this ETF is trying to do

The Doubleline Income Solutions Fund (ticker: DSL) is an Exchange Traded Fund (ETF) listed on the NYSE. While the specific investment strategy is not detailed in the provided data, the fund's name and distribution patterns suggest it focuses on providing income to its investors.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how much the share price moves. Total return includes both the price movement and the cash distributions paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately -11.54%, while the total return is approximately -3.17%.

• One Year: The price return was approximately -19.27%, while the total return was approximately -9.05%.

• Three Years: The price return was approximately -16.01%, while the total return was approximately 18.16%.

To visualize the price change, an investor's $10,000 investment in shares would have been worth an estimated $12,350.00 one year ago. Today, the share price is $9.97.

Income and distribution explanation

This ETF has a distribution yield of approximately 13.24%. This number describes the cash distributions relative to the current ETF price. The fund typically pays out money monthly, with 12 payments recorded over the last year.

A high distribution yield can be helpful for those seeking cash, but it is important to remember that a high yield does not guarantee the investment will grow in value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. StockValueFinder uses an "erosion score" to measure this risk.

DSL has an erosion score of 55, which is labeled as "moderate price erosion." This indicates a moderate level of risk regarding price deterioration. However, there is no "severe erosion-risk flag" for this fund.

Pros

• The fund provides a high distribution yield of approximately 13.24%.

• Over a three-year period, the total return was positive at approximately 18.16%, even though the share price itself declined during that time.

Cons

• The fund has experienced share-price declines over the last year and year-to-date.

• There is a moderate erosion-risk score of 55.

Beginner takeaway

When looking at an ETF like DSL, it is vital to look at both the price return and the total return. While the share price has gone down recently, the total return (which includes cash payments) shows a different picture. Always remember that high distributions provide cash, but they do not protect the original amount of money you invested from falling in value.