Understanding the TOUCHSTONE DIVIDEND SELECT ETF (DVND)

The TOUCHSTONE DIVIDEND SELECT ETF (ticker: DVND) is an exchange-traded fund designed to invest in companies that pay dividends. It holds a variety of stocks from different sectors, including technology and healthcare.

What the numbers show

When looking at this ETF, it is important to understand two different types of returns: price return and total return. The price return only tracks how much the share price itself changed. The total return includes both the change in share price and any cash payments (distributions) made to investors.

Based on the supplied data:

• One-Year Performance: The one-year price return was approximately 11.74%. However, the one-year total return was higher, at approximately 13.87%.

• Year-to-Date (YTD) Performance: So far this year, the price return is about 9.91%, while the total return is about 11.38%.

• Three-Year Performance: Over the last three years, the price return was approximately 52.68%, and the total return was approximately 62.24%.

To give you an idea of the price movement, the current price is $38.66. The estimated price from roughly one year ago was $34.59.

Income and distribution explanation

This ETF provides cash to investors through distributions. The distribution yield is approximately 1.79%. This number describes the cash payments relative to the current ETF price. In the last 12 months, the trailing distributions were $0.69 per share. These payments usually happen every three months (quarterly).

It is important to remember that a distribution yield is not the same as your total return. While distributions provide cash income, they are just one part of how an investment performs overall.

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.

Regarding price erosion (the decline in the market price of the shares), the fund has an erosion score of 100, which means "no price erosion detected." The severity of this score is rated as "good."

Top Holdings

The ETF holds a total of 56 different investments. Because the list provided is partial, these are only some of the largest holdings:

• Microsoft Corp (5.00%)

• BNY Dreyfus Govt Cash Mgmt Instl (3.75%)

• Apple Inc (3.11%)

• Broadcom Inc (3.09%)

• Meta Platforms Inc Class A (2.53%)

• Alphabet Inc Class C (2.52%)

• Johnson & Johnson (2.46%)

• ExxonMobil Holdings Corp (2.41%)

• Visa Inc Class A (2.18%)

• Philip Morris International Inc (2.08%)

*Note: Holdings can change over time.*

Pros

• The ETF has shown positive price returns and total returns over the last year and three years.

• The data shows no detected price erosion.

Cons

• The provided list of holdings is only a partial view of the full portfolio.

Beginner takeaway

DVND is an ETF that focuses on dividend-paying companies. For investors, it has shown growth in both its share price and its total return (which includes cash payments) over the last few years. While it pays out regular cash distributions, investors should always look at the total return to see how the fund is performing overall.