ETF Education Report: ATAC CREDIT ROTATION ETF (JOJO)

What this ETF is trying to do

The ATAC CREDIT ROTATION ETF, trading under the ticker JOJO on the NYSE, is an exchange-traded fund. While the specific investment strategy is not detailed in the provided data, ETFs are tools used to hold a collection of different assets.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This only tracks how much the share price itself has changed.

• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.

For JOJO, the numbers show different results depending on which you look at:

• Year-to-Date (YTD): The price return is approximately -4.57%, while the total return is approximately -1.12%.

• One Year: The price return is approximately -3.69%, but the total return is positive at approximately 1.32%.

• Three Year: The price return is approximately 2.06%, while the total return is much higher at approximately 18.31%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was $15.40. The current price is $14.83.

Income and distribution explanation

Some investors look for ETFs that pay out cash regularly. This is called the distribution yield. JOJO has a distribution yield of approximately 5.30%. This means the ETF paid out about $0.79 in trailing distributions.

These payments usually happen monthly, often on a Tuesday. It is important to remember that a high distribution yield does not mean the investor earned that same amount as total return. You must look at the "total return" figure to see how the investment performed overall including those payments.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. StockValueFinder uses an erosion-risk score to measure this risk.

JOJO has an erosion 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. This suggests the fund's price movement is not currently showing signs of high erosion risk according to these measurements.

Pros

• The ETF provides a distribution yield of approximately 5.30%.

• The three-year total return is positive at approximately 18.31%.

Cons

• The year-to-date price return is negative at approximately -4.57%.

• The five-year total return is negative at approximately -7.31%.

Beginner takeaway

When studying JOJO, notice how the total return is often higher than the price return. This happens because the cash distributions help offset some of the share-price declines. Always check both numbers to get a full picture of how an ETF is performing.