What this ETF is trying to do

The GLOBAL X PURECAP MSCI CONSUMER STAPLES ETF (ticker: GXPS) is an exchange-traded fund designed to invest in companies within the consumer staples sector. Consumer staples are products that people generally buy regardless of the economy, such as food, beverages, and household goods. This ETF holds a total of 31 holdings.

Top Holdings:

• Walmart Inc (WMT): 16.06%

• Costco Wholesale Corp (COST): 14.25%

• Procter & Gamble Co (PG): 11.95%

• Coca-Cola Co (KO): 11.77%

• Philip Morris International Inc (PM): 10.50%

• PepsiCo Inc (PEP): 6.11%

• Altria Group Inc (MO): 3.96%

• Mondelez International Inc Class A (MDLZ): 2.60%

• Target Corp (TGT): 2.49%

• Colgate-Palmolive Co (CL): 2.28%

*Note: This list is a partial view of the holdings and can change over time.*

What the numbers show

The current price of GXPS is $26.18. When looking at how the fund has performed, it is important to distinguish between price return and total return. Price return only tracks the change in the share price, while total return includes the impact of distributions.

• Year-to-Date (YTD): The YTD price return is approximately 7.40%, while the YTD total return is approximately 8.17%.

• One-Year: The one-year price return is approximately 8.42%, while the one-year total return is approximately 9.84%.

An estimated price from roughly one year ago was $24.15.

Income and distribution explanation

GXPS provides a distribution yield of approximately 1.28%. This number describes the cash distributions relative to the ETF price. The trailing distributions over the last year were approximately $0.34 per share.

The distribution frequency is described as "irregular / less frequent," with a payout count of 2 over the last 12 months. Because these payments do not happen on a regular schedule, investors should note that the income may not be consistent.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price-based evidence, the fund has an erosion score of 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

• The fund has shown positive price returns and total returns over the last year.

• The erosion-risk measurements suggest there is no detected price erosion.

Cons

• The distribution frequency is irregular, meaning payments are not made on a steady schedule.

• The income rating grade is a "C."

Beginner takeaway

When researching GXPS, it is important to understand that the total return (which includes distributions) is higher than the price return. This shows that the fund's overall value was boosted by its distributions. While the fund provides a distribution yield, it is not a high-frequency income source due to its irregular payout schedule. Always remember that a distribution yield is different from total return, and high yields alone do not guarantee stability.