ETF Education Report: KURV TECHNOLOGY TITANS SELECT ETF (KQQQ)

What this ETF is trying to do

The KURV TECHNOLOGY TITANS SELECT ETF (KQQQ) is an exchange-traded fund that focuses on technology companies. It is categorized as an "option income" ETF, which means it uses specific strategies to try and generate cash for its investors.

What the numbers show

When looking at an ETF, it is important to separate "price return" from "total return."

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

• Total Return includes both the change in share price AND any cash distributions paid out to investors.

For KQQQ, the numbers show:

• Year-to-Date (YTD): The price return is approximately 4.73%, while the total return is much higher at approximately 17.66%.

• One-Year: The price return is approximately 1.16%, while the total return is approximately 18.67%.

To visualize the price change, the estimated price from roughly one year ago was $29.06. The current price is $29.40.

Top Holdings

The following are the top holdings in this fund (note that this is a partial list):

• Alphabet Inc Class A: 11.48%

• Amazon.com Inc: 10.04%

• Intel Corp: 6.82%

• Advanced Micro Devices Inc: 6.03%

• Broadcom Inc: 5.97%

• Meta Platforms Inc Class A: 4.91%

• Apple Inc: 4.77%

• Fidelity Inv MM Government I: 3.52%

• NVIDIA Corp: 3.21%

• Applied Materials Inc: 2.84%

Income and distribution explanation

This ETF has a high distribution yield of approximately 16.97%. This number describes the cash distributions relative to the ETF's price. Over the last 12 months, the trailing distributions were $4.99 per share. These payments usually happen monthly, with Wednesday being the most common day for payouts.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. You must look at the "total return" figure to see the full picture of how the investment performed.

NAV erosion explanation

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

For KQQQ, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The fund provides a high distribution yield for those seeking regular cash.

• The total return has been significantly higher than the price return over the last year.

Cons

• The share-price growth (price return) has been relatively low compared to the total return.

• High-yield strategies can be complex.

Beginner takeaway

KQQQ is a technology-focused fund that aims to provide significant cash income. While the share price has stayed relatively steady, most of the fund's recent performance has come from its distributions rather than price increases. Always remember that high yields can be misleading if you do not also look at the share price and total return.