ETF Report: WEBs Defined Volatility XLY ETF (DVXY)

What this ETF is trying to do

The DVXY ETF is an exchange-traded fund that focuses on a specific strategy related to the Consumer Discretionary sector. Based on its holdings, it has significant exposure to the STATE STREET® CNSMRDISCSELSECTSPDR® ETF (XLY).

What the numbers show

The current price of DVXY is $22.82. Looking at how the share price has moved, we can see some recent declines:

• Year-to-Date (YTD) Price Return: The share price has decreased by approximately 10.50% since the start of the year.

• One-Year Price Return: Over the last twelve months, the share price has declined by approximately 6.11%.

To understand this change, we can look at an estimated price from roughly one year ago, which was approximately $24.31. If you had invested $10,000 into this ETF one year ago, your investment would have dropped to about $9,388 based on the share-price movement alone, before considering any distributions.

Because the total return data provided is the same as the price return (-6.11%), it shows that the overall performance matches the change in the share price.

Income and distribution explanation

Some investors look for ETFs that pay out regular cash, known as distributions. For DVXY, no distributions were detected over the last 12 months. The distribution yield is 0%. This means the ETF has not been providing cash income to investors during this period.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, which is the actual value of the assets held by the fund. While a falling market price does not always mean the NAV has dropped, it can be a sign of risk.

StockValueFinder uses an "erosion-risk score" to measure this. DVXY has an erosion-risk score of 75, which is labeled as "mild price erosion." This indicates that there has been some mild deterioration in the share price. However, there is no "severe erosion-risk flag" for this ETF.

Pros

• The ETF provides direct exposure to a major sector component (XLY), which makes up 47.99% of its holdings.

Cons

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

• There have been no distributions or cash income detected for investors.

Beginner takeaway

When looking at ETFs, it is important to distinguish between price return (how much the share price moves) and total return (which includes any cash paid out). In this case, both figures show a decline. Additionally, while some investors seek high yields, others look for stability. A declining share price can reduce the total value of an investment even if it pays income. Always remember that holdings can change over time.