Understanding the GAMMAROAD MARKET NAVIGATION ETF (GMMA)

What this ETF is trying to do

The GAMMAROAD MARKET NAVIGATION ETF (ticker: GMMA) is an exchange-traded fund listed on the NYSE. Based on its top holdings, it holds a mix of different types of assets to navigate the market.

Top Holdings:

• ISHARES CORE S&P 500 ETF: 68.08%

• STATE STREET® SPDR® BLMBG1-3MTHT-BILLETF: 31.76%

• FIRST AMERICAN GOVERNMENT OBLIGS X: 0.15%

Please note that holdings can change over time.

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 measures only the change in the share price. For GMMA, the year-to-date (YTD) price return is approximately 4.73%, and the one-year price return is approximately 4.08%.

• Total Return: This includes the share price change plus any distributions (cash payments) made to investors. The YTD total return is approximately 6.49%, and the one-year total return is approximately 7.51%.

To give you an idea of price movement, the current price is $22.16. The estimated price from roughly one year ago was approximately $21.29.

Income and distribution explanation

Some investors look for ETFs that pay out cash. This is called the distribution yield. For GMMA, the distribution yield is approximately 3.10%. Over the last 12 months, the trailing distributions were approximately $0.69 per share. These payments usually happen quarterly, and in the last year, there were 4 payouts.

It is important to remember that a high distribution yield is not the same thing as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the actual value of the underlying assets in an ETF decreases. Investors often care about this because they want their principal (the money they originally put in) to remain stable.

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

Pros

• The ETF shows a positive total return for both the year-to-date and one-year periods.

• The erosion-risk measurements suggest the fund is currently stable or moving sideways rather than losing value rapidly.

• It provides regular cash distributions.

Cons

• The price return is lower than the total return, meaning a portion of the overall gains comes from distributions rather than just the share price going up.

• The fund has a limited number of holdings (3 total).

Beginner takeaway

When studying GMMA, remember that price changes and cash distributions are two different things. The total return tells the whole story by combining both, while the distribution yield only tells you about the cash payments. Always look at the erosion-risk score to understand how stable the fund's value has been.