KKR Income Opportunities Fund (KIO) Educational Report

What this ETF is trying to do

The KKR Income Opportunities Fund (KIO) is an exchange-traded fund (ETF) listed on the NYSE. While the specific investment strategy is not detailed in the provided data, ETFs like this are generally designed to provide investors with regular income.

What the numbers show

It is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes both the price change and the cash distributions paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately -11.13%. However, the total return is -2.07%.

• One Year: The price return was approximately -18.38%, while the total return was -7.25%.

• Three Year: The price return was approximately -14.95%, but the total return was 21.04%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $12.62, and the current price is $10.30. This shows a decline in the share price over that period.

Income and distribution explanation

This ETF has a distribution yield of approximately 14.16%. This number describes the cash distributions relative to the ETF's price. The fund usually pays out money monthly, having made 12 distributions over the last year.

It is vital to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. Total return is the more complete measurement of how much value was gained or lost.

NAV erosion explanation

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

KIO has an erosion score of 55, which is labeled as "moderate price erosion." This indicates a moderate level of risk regarding price deterioration. However, there is no "severe erosion-risk flag" for this ETF.

Pros

• The fund has a high distribution yield of approximately 14.16%.

• Over a three-year period, the total return was positive at 21.04%, even though the share price itself declined.

Cons

• The fund has experienced share-price declines over the one-year and three-year periods.

• The erosion score indicates moderate price erosion risk.

Beginner takeaway

When looking at ETFs that pay high amounts of cash, always look at the total return, not just the yield. A high yield can sometimes be accompanied by a falling share price. Understanding the difference between the cash you receive and the change in the share price is a key part of learning how to read ETF data.