ETF Education Report: Gabelli Healthcare & WellnessRx Trust (GRX)

What this ETF is trying to do

The Gabelli Healthcare & WellnessRx Trust (ticker: GRX) is an exchange-traded fund (ETF) listed on the NYSE. While specific holdings are not listed in the current data, this fund is categorized as an ETF focused on the healthcare and wellness sector.

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 how much the share price has changed.

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

For GRX, the numbers show that total returns are higher than price returns because of the cash paid to investors. Here is the breakdown:

• Year-to-Date (YTD): The price return is approximately 2.08%, while the total return is approximately 7.77%.

• One Year: The price return is approximately 7.20%, while the total return is approximately 15.22%.

• Three Years: The price return is approximately 11.58%, while the total return is approximately 36.05%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was about $9.17, and the current price is $9.83.

Income and distribution explanation

Some investors look for ETFs that pay regular cash. This is called the "distribution yield." For GRX, the distribution yield is approximately 6.92%. This means the fund has paid out $0.68 in trailing distributions.

The data shows that these payments usually happen quarterly, with four payments made over the last 12 months. It is important to remember that a high distribution yield does not guarantee that the investment will grow, nor does it mean the total return will be the same as the yield percentage.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Investors often watch this because they want to make sure their original investment (the principal) stays stable while they collect income.

For GRX, the erosion-risk score is 100, and the label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The fund has shown positive price returns over the one-year and three-year periods.

• The total returns are significantly higher than the price returns, reflecting the impact of distributions.

• The erosion-risk measurements currently indicate a healthy status with no detected price erosion.

Cons

• The fund's specific top holdings are not provided in the current data.

• As with all investments, price returns can fluctuate.

Beginner takeaway

GRX provides both share-price growth and cash distributions. When studying this ETF, notice how the "total return" is much higher than the "price return"—this is because the total return accounts for the extra cash paid out to shareholders. Always distinguish between the price of a share and the total value an investor receives through both price changes and distributions.