What this ETF is trying to do

The GAMCO Natural Resources Gold & Income Trust (GNT) is an ETF traded on the NYSE. Based on its name, it focuses on natural resources and gold while aiming to provide income to its investors.

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.

For GNT, the numbers show growth in both areas:

• Year-to-Date (YTD): The price return is approximately 17.58%, while the total return is higher at approximately 25.28%.

• One Year: The price return was about 24.61%, and the total return was approximately 35.60%.

• Three Years: The price return was about 75.55%, while the total return was approximately 121.34%.

To visualize the price change, the estimated price from roughly one year ago was $7.03. The current price is $8.76.

Income and distribution explanation

This ETF is designed to pay out cash to investors. The distribution yield is approximately 7.88%. This number describes the cash distributions relative to the current ETF price.

GNT usually pays out money monthly, with 12 distributions recorded over the last year. The trailing distributions were $0.69 per share. It is important to remember that a high distribution yield does not guarantee the investment will grow, and it is different from the total return.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. Some investors worry that high payouts might cause this.

However, for GNT, the erosion-risk score is 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

• Strong Total Returns: The total return has significantly outperformed the simple price return over one, three, and five-year periods.

• Consistent Income: The ETF has a history of regular monthly distributions.

Cons

• No Top Holdings Listed: There is currently no data available regarding the specific companies held within this ETF's portfolio.

Beginner takeaway

When studying GNT, notice the gap between the price return and the total return. This gap exists because the total return accounts for the cash distributions paid to shareholders. While the distribution yield is high, the data shows that the share price has also been increasing, which contributed to a strong total return.