ETF Education Report: Goldman Sachs Hedge Industry VIP ETF (GVIP)

What this ETF is trying to do

The Goldman Sachs Hedge Industry VIP ETF (GVIP) is an exchange-traded fund. An ETF is a way to invest in many different companies at once through a single ticker symbol. This specific fund holds 51 different companies.

What the numbers show

The current price of one share is $172.99. To understand how the value has changed, we look at different types of returns:

• Price Return: This measures only the change in the share price. The one-year price return was approximately 11.79%. Over three years, the price return was approximately 99.79%.

• Total Return: This is a more complete measure because it includes both price changes and any cash distributions paid out. The one-year total return was approximately 12.17%. The three-year total return was approximately 102.57%.

• Year-to-Date (YTD): So far this year, the price return and total return are both approximately 11.68%.

An estimated price from roughly one year ago was $154.75.

Income and distribution explanation

Some investors look for "distributions," which are cash payments made by the ETF. The distribution yield for GVIP is approximately 0.30%. This means the cash paid out is small compared to the share price. The distributions are described as "irregular" or "less frequent," with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. It is important for income investors to watch this, as they want their original investment (the principal) to stay stable. For GVIP, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in this fund (note that this is a partial list):

• META PLATFORMS INC CLASS A (2.57%)

• ADVANCED MICRO DEVICES INC (2.49%)

• INTEL CORP (2.48%)

• SANDISK CORP ORDINARY SHARES (2.36%)

• MICRON TECHNOLOGY INC (2.32%)

• THERMO FISHER SCIENTIFIC INC (2.30%)

• APPLE INC (2.28%)

• SPACE EXPLORATION TECHNOLOGIES CORP CLASS A (2.27%)

• WARNER BROS. DISCOVERY INC (2.26%)

• TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD ADR (2.18%)

Holdings can change over time.

Pros

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

• The erosion-risk measurement is rated as "good."

Cons

• The distribution yield is relatively low at 0.30%.

• Distributions are irregular rather than being paid on a steady schedule.

Beginner takeaway

When looking at an ETF, it is helpful to distinguish between "price return" (how much the share price moved) and "total return" (the price move plus any cash paid to you). GVIP has shown growth in both areas over the last three years and currently shows no signs of price erosion.