Share-split context: A forward split was recorded on Dec 18, 2020 with coefficient 9. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

What this ETF is trying to do

ETHE is an ETF managed by Grayscale Investments LLC. The supplied data does not list specific holdings for this fund, so the exact assets it invests in are not provided in this report.

What the numbers show

The performance of ETHE shows different results depending on how far back you look. Over the last three years, the ETF had a positive price return of approximately 82.20% and a total return of about 85.04%.

However, more recent data shows a significant decline. For the past year, the share-price decline was about 44.03%, while the one-year total return was approximately -43.16%. So far this year (YTD), the price return is down about 15.39%, and the total return is down about 14.07%.

ETHE has a history of a forward split that occurred on December 18, 2020. In a forward split, each old share became multiple new shares (specifically, 9 new shares for every 1 old share). This caused the quoted per-share price to fall proportionally at that moment. It is important to understand that your proportional ownership did not change during the split; the split itself created neither a gain nor a loss.

Income and distribution explanation

ETHE provides cash distributions to investors, which usually happen on a monthly basis. Over the last 12 months, there were 10 payouts. The distribution yield is approximately 1.45%.

It is important for new investors to know that a distribution yield is not the same as total return. A high distribution yield tells you how much cash is paid out relative to the share price, but it does not mean the investor earned that percentage as their total return. For example, an ETF can pay out distributions even while its share price is falling.

NAV erosion explanation

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.

However, the data does show a "severe price erosion" label and an erosion score of 10. Because of this, ETHE has a severe erosion-risk flag. This means that StockValueFinder’s screening rules detected substantial price deterioration or a weak erosion score based on the available price trends. While a falling market price is not proof that the Net Asset Value (NAV) declined, these figures are used to measure risk.

Pros

• The ETF has shown a strong three-year total return of approximately 85.04%.

• It provides regular income through distributions that usually occur every month.

Cons

• The share-price decline over the last year was significant at about 44.03%.

• The fund carries a severe erosion-risk flag due to price deterioration.

• The current YTD total return is negative.

Beginner takeaway

ETHE shows very different results depending on the timeframe. While it performed well over three years, it has experienced a sharp share-price decline over the last year. Investors should look closely at the difference between price returns and total returns, especially when an ETF has a severe erosion-risk flag.