ETF Education Report: NESTYIELD VISIONARY ETF (EGGQ)

What this ETF is trying to do

The NESTYIELD VISIONARY ETF (EGGQ) is an exchange-traded fund listed on the NASDAQ. It holds a variety of different companies in its portfolio. Based on the top holdings, the fund has exposure to several technology and energy-related companies.

What the numbers show

When looking at how an ETF performs, it is important to look at two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price. For EGGQ, the year-to-date (YTD) price return is approximately 16.62%. The one-year price return is approximately 9.01%.

• Total Return: This includes the share price change plus any distributions (cash payments) made to investors. The YTD total return is approximately 23.68%, and the one-year total return is approximately 18.09%.

Because the total return is higher than the price return, it shows that distributions have added to the overall value.

To give you an idea of price movement, the estimated price from roughly one year ago was $49.94. The current price is $54.44.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 7.28%. This number describes the cash payments relative to the current ETF price. These payments usually happen 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 an ETF decreases significantly. Investors often care about this because they want their principal (the money they put in) to remain stable.

For EGGQ, the erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in this fund (note that this is a partial list):

• SEAGATE TECHNOLOGY HOLDINGS PLC: 11.23%

• LUMENTUM HOLDINGS INC: 8.43%

• BLOOM ENERGY CORP CLASS A: 7.70%

• WESTERN DIGITAL CORP: 7.23%

• ADVANCED MICRO DEVICES INC: 5.19%

• THE KROGER CO: 5.16%

• SK HYNIX INC ADR: 5.14%

• VERTIV HOLDINGS CO CLASS A: 4.86%

• CREDO TECHNOLOGY GROUP HOLDING LTD: 4.61%

• LITE US 07/31/26 C770: 4.25%

*Holdings can change over time.*

Pros

• The fund has shown positive price returns both year-to-date and over the last year.

• The total return is higher than the price return, meaning distributions have contributed to growth.

Cons

• The fund's performance data for the last three years was not supplied.

Beginner takeaway

When looking at EGGQ, notice the difference between the share price growth and the total return. The total return is higher because it includes the 7.28% distribution yield. Always remember that high yields provide cash, but they are separate from the actual growth of the share price.