Understanding the Ocean Park Diversified Income ETF (DUKZ)

What this ETF is trying to do

The Ocean Park Diversified Income ETF, known by its ticker symbol DUKZ, is an exchange-traded fund (ETF) listed on the NYSE. Based on its name, this fund is designed to focus on providing income to investors.

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: This measures only how much the share price has changed. For DUKZ, the year-to-date (YTD) price return is approximately -2.37%. The one-year price return is approximately -3.08%.

• Total Return: This includes both the price changes and the cash distributions (dividends) paid out. For DUKZ, the YTD total return is approximately 0.20%, and the one-year total return is approximately 0.60%.

To see how the price has moved, we can look at an estimated price from roughly one year ago, which was $25.47. The current price is $24.68. While the share price has gone down, the total return shows a small positive number because of the cash paid out to investors.

Income and distribution explanation

This ETF focuses on regular payments. The distribution yield is approximately 3.83%. This number describes the cash distributions relative to the ETF's price. DUKZ usually pays out money monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Investors often care about this because they want their original principal (the money they put in) to remain stable.

For DUKZ, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This means the fund's price trends are currently viewed as stable rather than showing significant deterioration.

Pros

• The fund provides regular monthly income distributions.

• The total return is positive over the last year, even though the share price itself declined.

• The erosion-risk measurements suggest a stable price trend.

Cons

• The share price has experienced a decline over the last year and year-to-date.

• Total returns have been relatively low (less than 1% over the last year).

Beginner takeaway

When looking at income-focused ETFs like DUKZ, always look at the total return rather than just the share price or just the yield. The share price might go down, but if the total return is positive, it means the cash distributions helped offset some of that price drop. Always remember that high yields do not guarantee your investment value will stay the same.