What this ETF is trying to do

The Fidelity Disruptive Automation ETF (FBOT) is an exchange-traded fund designed to invest in companies involved in automation. This ETF focuses on businesses that use new technology to change how work is done. According to its top holdings, the fund includes companies like Taiwan Semiconductor Manufacturing Co Ltd, Deere & Co, and NVIDIA Corp. Because these holdings can change over time, it is important to check the most recent data regularly.

What the numbers show

The performance of FBOT can be looked at in two ways: price return and total return. Price return only tracks how much the share price has changed. Total return includes both the price change and any cash distributions paid out to investors.

Based on the supplied data:

• Year-to-Date (YTD): The price return is approximately 18.82%, while the total return is approximately 19.02%.

• One-Year: The price return is approximately 18.18%, and the total return is approximately 18.72%.

• Three-Year: The price return is approximately 78.03%, and the total return is approximately 80.70%.

An estimated price from roughly one year ago was $33.52, compared to the current price of $39.61.

Income and distribution explanation

FBOT provides a distribution yield of approximately 0.39%. This represents the cash distributions relative to the ETF's price. Over the last 12 months, there were 3 distributions. The frequency of these payments is described as irregular or less frequent. It is important to remember that a distribution yield is not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). 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, looking at price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Strong Price Growth: The fund has shown significant positive price returns over the one-year and three-year periods.

• Positive Total Returns: The total return figures are higher than the price return figures, meaning distributions added to the overall value.

• Low Erosion Risk: The data shows no detected price erosion.

Cons

• Irregular Income: Distributions are not paid on a regular, predictable schedule.

• Lower Yield: The distribution yield is relatively low at approximately 0.39%.

Beginner takeaway

FBOT focuses on the automation industry and has shown strong growth in its share price over the last three years. While it does pay distributions, they are infrequent and the yield is small. Investors should distinguish between the rising share price (price return) and the total amount earned including distributions (total return).