Understanding the VICTORYSHARES WESTEND GLOBAL EQUITY ETF (GLOW)

The VICTORYSHARES WESTEND GLOBAL EQUITY ETF, trading under the ticker GLOW, is an exchange-traded fund designed to provide exposure to global equities. Based on its holdings, it seeks to invest in various sectors and regions around the world.

What this ETF is trying to do

GLOW invests in a variety of different areas to build a global portfolio. According to the most recent data, its top holdings include several large sector-specific funds. These include technology (XLK), European stocks (IEUR), financial services (XLF), and a broad fund for stocks outside of the United States (VEU). It also holds exposure to healthcare, communications, and small-cap stocks.

What the numbers show

When looking at how this ETF has performed, it is important to distinguish between price return and total return.

• Price Return: This measures only the change in the share price. For the past year, the one-year price return was approximately 14.10%. Year-to-date (YTD), the price return was approximately 13.05%.

• Total Return: This includes both the share price change and the money paid out through distributions. The one-year total return was approximately 15.61%, and the YTD total return was approximately 13.61%.

To give you an idea of the price movement, the current price is $34.86. The estimated price from roughly one year ago was approximately $30.55.

Income and distribution explanation

GLOW provides cash distributions to investors. The distribution yield is approximately 1.21%. This number represents the cash distributions relative to the current ETF price.

The fund usually pays out on a quarterly basis, though it has had 5 payouts in the last 12 months. The most common day for these distributions to occur is Thursday. It is important to remember that a distribution yield tells you about the cash paid out, but it is not the same thing as the 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, regarding price erosion (the decline in the market price of the shares), the data shows an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• Positive Returns: Both the price return and total return have been positive over the last year and year-to-date.

• Diversification: The fund holds a variety of different sector ETFs, such as technology, finance, and healthcare.

• Low Price Erosion Risk: The current erosion-risk measurements do not show signs of significant price deterioration.

Cons

• Moderate Income Rating: The fund has an income rating grade of "C," suggesting it may not be a primary choice for those seeking very high levels of cash income.

Beginner takeaway

GLOW is a global equity ETF that has shown both price and total growth over the past year. While it pays regular distributions, the yield is relatively modest at 1.21%. Investors should remember that price returns and total returns are different, and total return is the more complete picture of how much value was gained.