ETF Education Report: Global X Data Center & Digital Infrastructure ETF (DTCR)

What this ETF is trying to do

The Global X Data Center & Digital Infrastructure ETF (ticker: DTCR) is an exchange-traded fund designed to provide exposure to the digital world. It focuses on companies involved in data centers and digital infrastructure. This includes businesses that manage the physical buildings and technology used to power the internet and digital services.

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 only tracks how much the share price has changed. Total return includes both the price change and any cash distributions (dividends) paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately 31.66%, while the total return is approximately 32.15%.

• One-Year: The price return was approximately 30.06%, and the total return was approximately 31.37%.

• Three-Year: The price return was approximately 120.65%, and the total return was approximately 129.55%.

To visualize this, the estimated price from roughly one year ago was $21.36. The current price is $27.78.

Top Holdings

The following are the top holdings in this fund (note that this is a partial list):

• Digital Realty Trust Inc (13.14%)

• Equinix Inc (12.57%)

• American Tower Corp (12.11%)

• Crown Castle Inc (8.28%)

• NextDC Ltd (4.81%)

• GDS Holdings Ltd ADR (4.48%)

• Applied Digital Corp (4.36%)

• Keppel DC REIT (4.33%)

• SBA Communications Corp Class A (4.31%)

• Uniti Group Inc (3.46%)

Income and distribution explanation

Some investors look for "yield," which is the cash an ETF pays out. DTCR has a distribution yield of approximately 0.89%. The trailing distributions were $0.2477. The fund has a distribution frequency described as "irregular" or "less frequent," with two payouts in the last 12 months. It is important to remember that a distribution yield tells you how much cash was paid out, but it is not the same thing as your total return.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an "erosion-risk score" to measure this risk. For DTCR, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The fund has shown significant positive price returns over the one-year and three-year periods.

• The erosion-risk measurement is rated as "good."

Cons

• The distribution frequency is irregular, meaning payments may not happen on a predictable schedule.

Beginner takeaway

DTCR focuses on the companies that build and run the digital world. While it has shown strong price growth recently, investors should always distinguish between share-price increases (price return) and the total amount earned including cash payments (total return).