ETF Education Report: Clough Global Equity Fund (GLQ)

What this ETF is trying to do

The Clough Global Equity Fund (GLQ) is an Exchange Traded Fund (ETF). While the specific investment strategy is not listed in the provided data, ETFs are tools used by investors to access a collection of different assets through a single ticker symbol.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

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

• Total Return: This includes both the change in share price and the money paid out through distributions (dividends).

For GLQ, the numbers show:

• Year-to-Date (YTD): The price return is approximately 0.59%, while the total return is approximately 9.01%.

• One Year: The price return is approximately 0.98%, while the total return is approximately 12.30%.

• Three Years: The price return is approximately 39.58%, while the total return is approximately 94.69%.

To visualize the price change, the estimated price from roughly one year ago was $7.63. The current price is $7.71.

Income and distribution explanation

This ETF has a distribution yield of approximately 11.05%. This means the fund pays out a significant amount of cash relative to its share price. These distributions are usually paid monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. You must look at the "total return" figure to see how the investment performed overall including those cash payments.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. Investors often care about this because they want to make sure the money they put in stays stable while they collect income.

For GLQ, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag present.

Pros

• The fund has a high distribution yield of approximately 11.05%.

• The three-year total return has been approximately 94.69%.

• The erosion-risk score suggests the fund is currently considered stable or sideways.

Cons

• The five-year total return is approximately -7.72%.

• There are no top holdings listed in the provided data to show what companies the fund owns.

Beginner takeaway

When looking at GLQ, notice the large gap between the price return and the total return. This happens because a large portion of the fund's value comes from the cash distributions it pays out. Always check both numbers to understand how much of your return is coming from share price growth versus cash payments.