ETF Education Report: HDLB

What this ETF is trying to do

HDLB is an ETF (Exchange Traded Fund) that uses leverage. Being "leveraged" means the fund is designed to amplify the movements of its underlying assets. This specific fund focuses on US high-dividend and low-volatility stocks.

What the numbers show

The current price of HDLB is $16.27. To understand how the price has moved, we can look at different timeframes:

• Year-to-Date (YTD): The price return is approximately 8.20%.

• One Year: The one-year price return is approximately -0.23%.

• Three Year: The three-year price return is approximately 53.32%.

For this ETF, the "price return" and "total return" are the same because no distributions were detected. The price return measures only the change in the share price. An estimated price from roughly one year ago was $16.30.

Income and distribution explanation

Some investors look for ETFs that pay out cash regularly, which is called a "distribution yield." For HDLB, the distribution yield is 0%. No distributions have been detected in the last 12 months. Because there are no payouts, the total return is identical to the price return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, which is the actual value of the assets held by the fund. While a falling share price can sometimes be a sign of erosion, it is not proof of it.

StockValueFinder uses an "erosion-risk score" to measure this risk. HDLB has an erosion score of 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 fund has shown a strong three-year price return of approximately 53.32%.

• The erosion-risk score suggests the fund is currently in a stable or sideways position.

Cons

• The one-year price return has been slightly negative at approximately -0.23%.

• This is a leveraged ETF, which means price movements can be much larger and faster than regular funds.

• There are currently no distributions or income being paid out to investors.

Beginner takeaway

HDLB is a leveraged fund, which means it can be more volatile than standard funds. While it has seen significant growth over the last three years, its price has been slightly down over the last year. It is also not currently providing cash income through distributions. Always remember that leveraged funds carry different risks than non-leveraged ones.