ETF Education Report: GLOBAL X PURECAP MSCI CONSUMER DISCRETIONARY ETF (GXPD)

What this ETF is trying to do

The GXPD ETF focuses on the "consumer discretionary" sector. This means it invests in companies that sell goods and services people choose to buy, such as cars, electronics, or travel. This ETF holds 50 different companies in total.

Top Holdings:

The following is a partial list of the largest companies held by this ETF:

• AMAZON.COM INC (43.68%)

• TESLA INC (14.41%)

• THE HOME DEPOT INC (5.38%)

• MCDONALD'S CORP (2.99%)

• TJX COMPANIES INC (2.77%)

• BOOKING HOLDINGS INC (2.40%)

• LOWE'S COMPANIES INC (1.89%)

• STARBUCKS CORP (1.87%)

• MERCADOLIBRE INC (1.37%)

• ROYAL CARIBBEAN GROUP (1.32%)

*Note: Holdings can change over time.*

What the numbers show

When looking at ETF performance, it is important to know the difference between price return (just the change in share price) and total return (the change in price plus any cash distributions received).

• Year-to-Date (YTD): The YTD price return is approximately -3.66%. The YTD total return is approximately -3.52%.

• One-Year Performance: The one-year price return is approximately -3.57%. The one-year total return is approximately -3.24%.

To give you an idea of the price movement, the estimated price from roughly one year ago was $26.44. The current price is $25.50.

Income and distribution explanation

Some investors look for "distributions," which are cash payments made by the ETF. The distribution yield for GXPD is approximately 0.35%. This represents the cash distributed relative to the current ETF price.

The data shows that distributions for this ETF are "irregular" or "less frequent." In the last 12 months, there were 2 payouts. It is important to remember that a distribution yield tells you about cash payments, but it does not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not always the same thing.

For this ETF, 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 has a "good" erosion severity rating, suggesting the price trend is relatively stable.

• It provides exposure to very large well-known companies like Amazon and Tesla.

Cons

• The ETF has experienced a negative price return both year-to-date and over the last year.

• The income rating grade is a "D," meaning it is not a high-income focused fund.

Beginner takeaway

When studying GXPD, notice that the total return is slightly higher than the price return. This happens because the small cash distributions help offset a tiny bit of the share-price decline. Always remember to look at both price changes and total returns to see the full picture of how an ETF is performing.