What this ETF is trying to do

The GLOBAL X DORSEY WRIGHT THEMATIC ETF (GXDW) focuses on specific "themes" or trends in the market. Instead of buying every company, it picks groups of companies involved in certain technologies and industries.

Based on its top holdings, this ETF invests in areas like:

• Genomics & Biotechnology (via GNOM)

• Hydrogen Energy (via HYDR)

• Cybersecurity (via BUG)

• Artificial Intelligence & Tech (via AIQ)

• Lithium & Battery Technology (via LIT)

What the numbers show

The current price of one share is $25.05. An estimated price from roughly one year ago was $27.74.

It is important to understand two different types of returns: 1. Price Return: This only tracks how much the share price goes up or down. 2. Total Return: This tracks the share price change *plus* any cash distributions (dividends) paid out.

Here is what the data shows for GXDW:

• Year-to-Date (YTD): The price return is 4.51%, and the total return is 4.84%.

• One Year: The price return was -9.70%, while the total return was -8.38%.

• Three Years: The price return was 5.29%, and the total return was 9.91%.

• Five Years: The total return was -47.37%.

To see how the share price changed, imagine you had $10,000 invested one year ago. Based on the price-only change, that investment would be worth approximately $9,030 today.

Income and distribution explanation

Some investors look for "distributions," which is cash paid out to shareholders. This ETF has a distribution yield of 1.43%. Over the last year, it made two payments. The frequency of these payments is described as irregular or less frequent.

It is important to remember that a distribution yield is not the same as a total return. A high yield does not mean you are making a profit if the share price is falling.

NAV erosion explanation

The ETF has an "erosion-risk score" of 75, which is labeled as "mild price erosion."

NAV erosion refers to a decline in the Net Asset Value, which is the actual value of the assets the ETF owns. While a falling share price does not always mean the NAV is dropping, this score is a measurement used to track trends in price deterioration. This ETF does not have a "severe erosion-risk flag."

Pros

• The ETF provides exposure to many different high-tech themes like AI and cybersecurity.

• It has shown positive total returns over the last three years.

Cons

• The one-year price return was negative (-9.70%).

• The five-year total return shows a significant decline of -47.37%.

• There is a measurement of mild price erosion.

Beginner takeaway

When looking at GXDW, it is helpful to distinguish between the share price and the total return. While the ETF has seen some growth recently (YTD), its long-term five-year total return has been negative. Also, keep in mind that while the ETF pays out some cash through distributions, those payments are irregular.