ETF Education Report: WEBs Defined Volatility XLK ETF (DVXK)

What this ETF is trying to do

The WEBs Defined Volatility XLK ETF (ticker: DVXK) is an exchange-traded fund listed on the NASDAQ. Based on its top holdings, this ETF focuses on technology sector exposure through a single primary holding.

Top Holdings

As of the latest data from September 27, 2026, the fund has one total holding:

• STATE STREET® TECHSELSECTSPDR® ETF (XLK): 45.76% weight

Please note that holdings can change over time.

What the numbers show

It is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes both the price change and any cash distributions paid out.

• Year-to-Date (YTD): The YTD price return is approximately 26.82%. However, the YTD total return is much higher at approximately 155.84%.

• One-Year Performance: The one-year price return is approximately 41.09%. The one-year total return is approximately 193.91%.

• Price History: The current price is $35.89. Based on the one-year price return, the estimated price from roughly one year ago was approximately $25.43.

Income and distribution explanation

This ETF has a very high distribution yield of approximately 103.74%. This means the cash distributions are very large relative to the ETF's price. Over the last 12 months, there were 3 distributions, which occurred on an irregular or less frequent basis.

It is vital to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. Distributions provide cash income, but they do not guarantee that your original investment (your principal) will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases. When an ETF's share price falls significantly, it can sometimes be a sign of erosion.

For DVXK, the erosion-risk score is 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The ETF has shown very high total returns over the last year.

• It provides significant cash distributions to investors.

Cons

• The distribution frequency is irregular, meaning you cannot rely on a set schedule for cash payments.

• High distribution yields can sometimes be misleading if the share price is not stable.

Beginner takeaway

When looking at ETFs, always look at the "total return" rather than just the "price return" to see how the fund has actually performed including its payouts. Also, be careful with very high yields; while they provide cash, they are different from the overall growth of your investment.