Understanding the Renaissance International IPO ETF (IPOS)

What this ETF is trying to do

The Renaissance International IPO ETF, trading under the ticker IPOS, is an exchange-traded fund designed to provide exposure to companies that are undergoing Initial Public Offerings (IPOs). This means the fund focuses on businesses that are recently joining the public stock market.

What the numbers show

The data shows different ways to look at how the fund's value has moved over time. It is important to distinguish between price return (the change in the share price) and total return (which includes both price changes and distributions).

• Year-to-Date (YTD): The YTD price return is approximately 27.47%. When including distributions, the YTD total return is approximately 28.17%.

• One Year: The one-year price return is approximately 19.68%. The one-year total return is approximately 20.47%.

• Three Years: The three-year price return is approximately 58.51%. The three-year total return is approximately 62.69%.

• Five Years: The five-year total return is approximately -23.59%.

For context, the estimated price from roughly one year ago was $17.99, compared to the current price of $21.53.

Income and distribution explanation

IPOS provides some cash distributions to investors, but they are not frequent. The distribution yield is approximately 0.67%. Over the last 12 months, there were 3 distributions. The frequency is described as "irregular" or "less frequent," with the most recent payments occurring on Fridays.

When looking at income, it is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it does not represent the total amount an investor earned.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). 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 present.

Pros

• Strong Recent Performance: The fund has shown significant positive price and total returns over the last one, three, and year-to-date periods.

• Low Price Erosion Risk: Based on the supplied erosion score, there are no current signs of price deterioration.

Cons

• Long-term Performance: The five-year total return is negative, at approximately -23.59%.

• Irregular Income: Distributions are not frequent or consistent, which may not suit investors looking for steady monthly cash flow.

Beginner takeaway

IPOS focuses on new companies entering the stock market. While it has shown strong growth in the short and medium term, its five-year history shows a decline. Investors should note that while the fund provides some distributions, they are irregular and the yield is relatively low.