What this ETF is trying to do

The Strategy Shares Nasdaq 5HANDL Index ETF (ticker: FIVR) is an exchange-traded fund. It is designed to track a specific index.

What the numbers show

As of August 30, 2023, the current price of one share is $21.15. Based on data from roughly one year ago, the estimated price was about $21.66.

It is important to look at two different types of returns:

• Price Return: This measures only how much the share price changed. The one-year price return was -2.38%. The year-to-date (YTD) price return was 3.16%.

• Total Return: This includes both the share price change and any cash distributions paid out. The one-year total return was 2.23%. The YTD total return was 6.25%.

To understand how this works, imagine you invested $10,000 into this ETF roughly one year ago. If you only look at the share price (the price return), your $10,000 would have dropped to approximately $9,762.29. However, because the total return was positive at 2.23%, your actual result would be higher once the cash distributions are included.

Income and distribution explanation

This ETF provides cash payments, known as distributions. The distribution yield is 4.58%. Over the last year, the trailing distributions were $0.97 per share. These payments usually happen monthly, with 12 payments made in the last year.

Keep in mind that a high distribution yield is not the same as total return. A yield tells you how much cash was paid out relative to the price, but it does not guarantee that your total investment grew by that same amount.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the underlying assets held by the fund. This ETF has an erosion-risk score of 94, which is labeled as "Stable / sideways." The severity of this risk is described as "good," and there is no severe erosion-risk flag for this fund.

Pros

• Positive Total Returns: While the share price went down over the last year, the total return (which includes distributions) was positive at 2.23%.

• Regular Income: The ETF provides monthly distributions.

Cons

• Share-Price Decline: The one-year price return was negative (-2.38%), meaning the cost of a single share decreased over that time.

Beginner takeaway

When looking at ETFs, always check the difference between "price return" and "total return." An investor might see the share price falling and think they are losing money, but the total return shows how much they actually earned after including cash distributions. High yields can provide income, but they do not prevent the share price from dropping.