ETF Education Report: COUNTERPOINT HIGH YIELD TREND ETF (HYTR)

What this ETF is trying to do

The COUNTERPOINT HIGH YIELD TREND ETF (ticker: HYTR) is an exchange-traded fund traded on the NYSE. While the specific investment strategy is not detailed in the data, the name suggests a focus on high-yield assets.

What the numbers show

It is important to understand that "price return" and "total return" are different things. Price return only tracks how the share price moves. Total return includes both the price movement and the money paid out through distributions.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately -4.25%. However, the YTD total return is -0.64%.

• One Year: The one-year price return is approximately -4.70%, while the one-year total return is 0.95%.

• Three Year: The three-year price return is approximately 0.92%, while the three-year total return is 19.37%.

To visualize the price change, we can look at an estimated example. The current price is $20.80. An estimated price from roughly one year ago was $21.82.

Income and distribution explanation

This ETF has a distribution yield of approximately 5.95%. This means the cash distributions are about 5.95% of the ETF's price. The fund usually pays out money monthly, having made 11 payments over the last 12 months.

For beginners, it is important to remember that a high distribution yield does not mean you earned that same percentage as your total return. Total return is the more complete picture of how the investment performed.

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.

In this case, the fund has an erosion-risk 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 provides regular cash distributions (usually monthly).

• The three-year total return is positive at approximately 19.37%.

Cons

• The one-year price return has been negative (approximately -4.70%).

• The year-to-date price return has also been negative (approximately -4.25%).

Beginner takeaway

When looking at HYTR, notice the difference between the share price and the total return. For example, over the last year, the share price went down, but the total return was positive. This happens because the distributions (the cash paid to investors) helped offset some of the price decline. Always look at total return to see how distributions affect your overall results.