ION: PROSHARES S&P GLOBAL CORE BATTERY METALS ETF
Understanding the ProShares S&P Global Core Battery Metals ETF (ION)
The ProShares S&P Global Core Battery Metals ETF (ticker: ION) is designed to invest in companies involved in the battery metals industry. This fund provides exposure to a variety of companies that produce materials used in batteries.
What this ETF is trying to do
This ETF focuses on the "core" metals needed for batteries. Instead of buying just one company, it holds a collection of different businesses. According to the provided data, the fund holds 64 total holdings. Some of its top holdings include:
• Pacific Metals Co Ltd (5.01%)
• IGO Ltd (3.72%)
• PT Timah (Persero) TBK (3.53%)
• PT Vale Indonesia TBK (3.37%)
• Sigma Lithium Corp (3.16%)
Please note that this is a partial list of the largest holdings and can change over time.
What the numbers show
When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes distributions).
• Year-to-Date (YTD): The price return is approximately -11.32%, while the total return is approximately -10.45%.
• One-Year: The price return was approximately 12.84%, and the total return was approximately 14.68%.
• Three-Year: The price return was approximately 49.85%, and the total return was approximately 58.06%.
An estimated price from roughly one year ago was $40.60, compared to the current price of $45.82.
Income and distribution explanation
This ETF provides some cash income through distributions. The current distribution yield is approximately 1.80%. Over the last 12 months, there were 3 distributions. The frequency is described as "irregular" or "less frequent."
It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same as your total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, regarding price movement, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.
Pros
• Strong long-term price growth: The three-year price return has been quite high at approximately 49.85%.
• Positive total returns: Over the one-year and three-year periods, the total returns have been positive.
• Low erosion risk: The data shows no detected price erosion.
Cons
• Recent price decline: The year-to-date price return is currently negative at approximately -11.32%.
• Irregular income: Distributions do not happen on a regular, predictable schedule.
Beginner takeaway
ION is an ETF focused on the battery metals sector. While it has shown strong growth over the last three years, it has experienced a price decline so far this year. Investors interested in income should note that the yield is relatively modest and the payments are irregular. Always remember to look at both price changes and total returns when researching an ETF.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | PACIFIC METALS CO LTD | n/a | 5.01% |
| 2 | IGO LTD | n/a | 3.72% |
| 3 | PT TIMAH (PERSERO) TBK | n/a | 3.53% |
| 4 | PT VALE INDONESIA TBK | n/a | 3.37% |
| 5 | SIGMA LITHIUM CORP | n/a | 3.16% |
| 6 | ERAMET SA | n/a | 2.92% |
| 7 | TIBET MINERAL DEVELOPMENT CO LTD CLASS A | n/a | 2.92% |
| 8 | PLS GROUP LTD | n/a | 2.88% |
| 9 | AFRICAN RAINBOW MINERALS LTD | n/a | 2.87% |
| 10 | n/a | SQM | 2.86% |