ETF Education Report: Ellsworth Growth and Income Fund Ltd (ECF)

What this ETF is trying to do

The Ellsworth Growth and Income Fund Ltd (ECF) is an Exchange Traded Fund (ETF). Based on its name, this fund aims to provide a mix of growth and regular income for investors.

What the numbers show

When looking at ETF data, it is important to know the difference between "price return" and "total return."

• Price Return: This only tracks how much the share price itself has changed.

• Total Return: This includes both the change in share price and the money paid out through distributions (dividends).

For ECF, the numbers show:

• Year-to-Date (YTD): The price return is approximately 3.35%, while the total return is higher at approximately 8.50%.

• One Year: The price return was about 2.91%, but the total return was approximately 11.97%.

• Three Years: The price return was about 47.67%, while the total return was approximately 81.38%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $11.68, and the current price is $12.02.

Income and distribution explanation

This ETF provides cash payments called distributions. The distribution yield is approximately 8.40%. This number describes the cash payments relative to the current ETF price. Over the last 12 months, there were 4 distributions. These payments usually happen on a quarterly basis, often on a Monday.

It is important to remember that a high distribution yield does not mean an investor earned that exact percentage as their total return. You must look at the "total return" figure to see the full picture of how the investment performed including those payments.

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 watch this because they want to make sure their original investment (the principal) stays stable while they collect income.

For ECF, 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.

Pros

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

• It provides a significant distribution yield for those looking for cash income.

Cons

• The price return is lower than the total return, meaning a large portion of the performance comes from the distributions rather than just the share price going up.

Beginner takeaway

When studying ECF, notice that the total return is much higher than the price return. This tells you that the distributions play a big role in the fund's overall performance. Always check both numbers to understand how much of your return comes from price changes versus cash payments.

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*Disclaimer: This report is for educational purposes only. It does not provide financial advice and does not recommend buying, selling, or holding this ETF.*