ETF Education Report: ALPHA ARCHITECT HIGH INFLATION AND DEFLATION ETF (HIDE)

What this ETF is trying to do

The ALPHA ARCHITECT HIGH INFLATION AND DEFLATION ETF (ticker: HIDE) is an exchange-traded fund listed on the NASDAQ. While the specific strategy isn't detailed in the data, it is designed to navigate different economic environments.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price moves. Total return includes both the price movement and any cash distributions paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately 8.68%. The total return is also approximately 8.68%.

• One Year: The price return was approximately 6.89%, while the total return was higher at approximately 10.27%.

• Three Years: The price return was approximately 4.34%, while the total return was approximately 15.03%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was $23.11, and the current price is $24.70.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 2.91%. This means the amount of cash paid out is about 2.91% of the current share price. The trailing distributions were approximately $0.72 per share.

It is important to note that the distribution frequency is described as "irregular" or "less frequent," with one payout recorded in the last 12 months. Investors should remember that a distribution yield is not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an "erosion-risk score" to measure this risk. For HIDE, the erosion score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

The fund holds a total of 4 assets. Here are the Top Holdings:

• VANGUARD REAL ESTATE ETF (26.62%)

• SCHWAB INTERMEDIATE-TERM US TRS ETF (24.65%)

• ABRDN BLMB ALLCMDSTRK1FR ETF (23.79%)

• FIRST AMERICAN GOVERNMENT OBLIGS X (0.24%)

Please note that holdings can change over time.

Pros

• The ETF shows a positive total return across one-year and three-year periods.

• The erosion-risk measurement is rated as "good," with no price erosion detected.

Cons

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

Beginner takeaway

When studying HIDE, notice that the total return is higher than the price return. This happens because the fund pays out distributions in addition to the changes in share price. Always look at both numbers to see the full picture of how an ETF has performed.