Share-split context: A reverse split was recorded on Jun 17, 2024 with coefficient 0.2. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

What this ETF is trying to do

The GLOBAL X HYDROGEN ETF (ticker: HYDR) is an exchange-traded fund that focuses on the hydrogen sector. Based on its Top Holdings, the fund invests in companies involved in hydrogen technology, such as Bloom Energy Corp Class A and Plug Power Inc. Because the list of holdings provided is partial, these companies represent only a portion of what the fund owns.

What the numbers show

When looking at ETF performance, 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.

Here is how HYDR has performed:

• Year-to-Date (YTD): The price return is approximately 36.86%, while the total return is approximately 37.86%.

• One-Year: The price return is approximately 4.69%, while the total return is approximately 8.56%.

• Three-Year: The price return is approximately 28.32%, while the total return is approximately 35.19%.

It is also important to note that this ETF has a history of a reverse split. On June 17, 2024, a reverse split occurred. In a reverse split, multiple old shares are combined into fewer new shares. This causes the price per share to rise mechanically, but it does not increase the actual value of your investment. Because of this history, we use split-adjusted returns to show true performance.

Income and distribution explanation

This ETF provides cash distributions to investors. The current distribution yield is approximately 3.03%. This number describes the cash paid out relative to the current share price of $43.50.

The fund has an irregular distribution frequency, meaning payments do not happen on a set schedule. In the last 12 months, there were two payouts. While distributions provide cash income, they are not the same as total return, and a high yield does not guarantee that the share price will stay stable.

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.

StockValueFinder uses an erosion-risk score to measure this risk. HYDR has an erosion score of 94, which is labeled as "Stable / sideways" with a "good" severity rating. There is no severe erosion-risk flag for this ETF.

Pros

• The fund has shown positive total returns over the one-year and three-year periods.

• The erosion-risk score suggests a stable trend rather than high risk of value loss.

Cons

• The five-year total return is approximately -56.88%, showing significant long-term price decline.

• Distributions are irregular and less frequent.

Beginner takeaway

When looking at HYDR, remember that price returns and total returns are different. The total return is a more complete picture because it includes the 3.03% distribution yield. Also, always check if an ETF has had a reverse split, as this can make the share price look higher without actually changing the value of your holdings.