ETF Education Report: UNLIMITED HFGM GLOBAL MACRO ETF (HFGM)

What this ETF is trying to do

The UNLIMITED HFGM GLOBAL MACRO ETF (ticker: HFGM) is an exchange-traded fund listed on the NYSE. Based on its top holdings, this fund uses various financial tools like futures and bonds to gain exposure to different markets. These include things like corporate bonds, government obligations, gold, crude oil, and different international stock indexes.

What the numbers show

When looking at how an ETF performs, it is important to look at two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price. For HFGM, the year-to-date (YTD) price return is approximately 10.63%. The one-year price return was approximately 0.59%.

• Total Return: This includes the share price change plus any distributions (cash payments) made to investors. The one-year total return for this ETF was approximately 11.60%. This is higher than the price return because it accounts for the cash paid out.

The current price of the ETF is $31.91. An estimated price from roughly one year ago was approximately $31.72.

Income and distribution explanation

This ETF has a distribution yield of approximately 10.15%. This number describes the cash distributions relative to the ETF's price. It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return.

The distributions for this fund are described as "irregular" or "less frequent," with one payout recorded in the last 12 months. While these payments provide cash income, they do not guarantee that your original investment (the principal) will stay the same value.

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 look like erosion, they are not always the same thing.

For HFGM, 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 fund shows a positive one-year total return of approximately 11.60%.

• The erosion-risk measurement suggests the fund's value has been relatively stable or moving sideways rather than dropping sharply.

Cons

• The distribution frequency is irregular, meaning investors cannot rely on a steady, predictable schedule of cash payments.

• The income rating grade is a "C."

Beginner takeaway

When looking at HFGM, it is helpful to distinguish between the share price and the total return. Because this ETF pays out a high distribution yield, the total return (which includes those payments) is different from the price return. Always remember that a high yield provides cash, but it is not the same as total growth.

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*Note: This report is for educational purposes only and does not constitute financial advice. It does not recommend buying, selling, or holding this ETF.*