What this ETF is trying to do

The KRANESHARES CALIFORNIA CARBON ALLOWANCE STRATEGY ETF (KCCA) is an exchange-traded fund listed on the NYSE. While the specific investment goal isn't detailed in the data, it holds assets like the KRANESHARES SUST ULTRA SHRT DUR IDX ETF.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

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

• Total Return: This includes both the price movement and any cash distributions (dividends) paid out.

For KCCA, the numbers show:

• Year-to-Date (YTD): The price return is approximately -1.73%. The total return is also approximately -1.73%.

• One Year: The price return was approximately -4.12%, while the total return was approximately -1.31%.

• Three Year: The price return was approximately -42.77%, while the total return was approximately -22.42%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was $17.23. The current price is $16.52.

Income and distribution explanation

Some investors look for "yield," which is the cash an ETF pays out. KCCA has a distribution yield of approximately 2.92%. This means the fund paid out $0.48 per share over the trailing period.

The data shows that these distributions happen irregularly or less frequently, with one payment occurring on a Monday in the last 12 months. It is important to remember that a distribution yield is not the same as total return. A high yield does not guarantee that an investor will make money if the share price is falling.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, which is the actual value of the assets held by the fund. While a falling share price can sometimes be related to erosion, they are not the same thing.

StockValueFinder uses an erosion-risk score to measure this risk. KCCA has an erosion score of 94, which is labeled as "Stable / sideways." This indicates a "good" level of erosion severity, and there is no severe erosion-risk flag present.

Pros

• The fund has a "good" erosion severity rating.

• It provides a distribution yield of approximately 2.92%.

Cons

• The three-year price return has been significantly negative (approximately -42.77%).

• The income rating grade is an "F."

Beginner takeaway

When studying KCCA, notice the difference between price return and total return. For example, over the last year, the share price dropped by about 4.12%, but because of distributions, the total return was a smaller loss of about 1.31%. Always look at both numbers to see the full picture of how an ETF is performing.