ETF Education Report: SCHARF ETF (KAT)

What this ETF is trying to do

SCHARF ETF (ticker: KAT) is an exchange-traded fund that holds a variety of different companies. Based on its top holdings, it invests in many large businesses across different industries, such as technology and energy. This report uses data available as of August 11, 2026.

What the numbers show

The current price of one share of KAT is $58.55. When looking at how the fund has performed this year (Year-to-Date), we look at two different numbers:

• YTD Price Return: This is approximately 6.45%. This number only measures how much the share price itself has moved up.

• YTD Total Return: This is approximately 6.54%. The total return is a different measurement because it includes both the share-price change and the impact of distributions.

Because the total return is higher than the price return, it shows that distributions added to the overall value for investors so far this year.

Income and distribution explanation

This ETF has a distribution yield of approximately 7.79%. The distribution yield describes the cash payments made relative to the ETF's price. It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return.

The data shows that distributions for this fund are "irregular" or "less frequent." In the last 12 months, there was only one payout recorded. While these payments provide cash income, they do not guarantee that your original investment (your principal) will stay the same value.

NAV erosion explanation

"NAV" stands for Net Asset Value, which is essentially the actual value of the assets held inside the ETF. "NAV erosion" happens when the value of those underlying assets drops significantly over time.

For this ETF, there is no severe erosion-risk flag present. However, because there is not enough verified price history available, an official erosion-risk score has not been provided.

Top Holdings

The following are the top holdings in this fund. Please note that this is a partial list of the 36 total companies held by the ETF:

• AMAZON.COM INC (5.96%)

• OCCIDENTAL PETROLEUM CORP (5.80%)

• UNION PACIFIC CORP (5.78%)

• MICROSOFT CORP (5.66%)

• MARKEL GROUP INC (4.56%)

• VISA INC CLASS A (4.34%)

• MCKESSON CORP (4.33%)

• META PLATFORMS INC CLASS A (3.97%)

• BROOKFIELD CORP REGISTERED SHS -A- LIMITED VTG (3.95%)

• AGILENT TECHNOLOGIES INC (3.81%)

*Note: Holdings can change over time. This data was updated on August 28, 2026.*

Pros

• The fund has shown a positive total return so far this year.

• It provides a distribution yield of approximately 7.79%.

Cons

• Distributions are irregular and infrequent.

• Total return and price return data for one-year or three-year periods were not supplied.

Beginner takeaway

When looking at ETFs, it is important to distinguish between the share price and the total return. A high distribution yield can look attractive, but it does not guarantee that the share price will stay stable. Investors often look for a balance where the share price stays steady or grows while also providing income.