ETF Education Report: PINNACLE FOCUSED OPPORTUNITIES ETF (FCUS)

What this ETF is trying to do

The PINNACLE FOCUSED OPPORTUNITIES ETF (ticker: FCUS) is an exchange-traded fund listed on the NYSE. It holds a variety of different companies in its portfolio. Based on the top holdings provided, the fund includes companies like Hecla Mining Co, MongoDB Inc, and Opendoor Technologies Inc. Because the list provided is partial, these are considered "Top Holdings" rather than all the companies in the fund.

What the numbers show

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

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

• Total Return: This includes both the change in share price AND any cash distributions (dividends) paid out to investors.

For FCUS, the numbers show strong growth:

• Year-to-Date (YTD): The price return is approximately 41.29%. The total return is also approximately 41.29%.

• One Year: The price return was approximately 35.98%, while the total return was higher at approximately 41.78%.

• Three Year: The price return was approximately 112.04%, while the total return was approximately 144.11%.

To visualize the price change, the current price is $44.34. The estimated price from roughly one year ago was approximately $32.61.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. The distribution yield for this ETF is approximately 3.07%. This number describes the cash distributions relative to the current ETF price. It is important to remember that a distribution yield is not the same as total return. Also, this ETF has an "irregular" or less frequent distribution schedule, with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. Some investors worry about this because they want to keep their original investment amount (the principal) stable. For FCUS, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

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

• The erosion-risk measurement is rated as "good."

Cons

• Distributions are described as irregular or less frequent, meaning they do not happen on a steady schedule.

• The holdings list is partial, so investors only see a portion of the full portfolio.

Beginner takeaway

When studying FCUS, notice the difference between price return and total return. The total return is higher because it accounts for the cash paid out to investors. While the fund provides a distribution yield, always remember that high yields do not guarantee that your original investment will stay the same value.

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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.*