What this ETF is trying to do

The GLOBAL X CONSCIOUS COMPANIES ETF (ticker: KRMA) is an exchange-traded fund. While the specific goal of its strategy is not detailed in the provided data, it holds a variety of different companies. Based on its Top Holdings, the fund has significant exposure to large technology companies.

Top Holdings:

• NVIDIA CORP (6.58%)

• APPLE INC (5.75%)

• ALPHABET INC CLASS A (4.92%)

• MICROSOFT CORP (3.59%)

• AMAZON.COM INC (2.80%)

• BROADCOM INC (1.91%)

• META PLATFORMS INC CLASS A (1.21%)

• MICRON TECHNOLOGY INC (1.08%)

• PALO ALTO NETWORKS INC (1.02%)

• DELL (1.01%)

Please note that this list is a partial view of the total 146 holdings, and holdings can change over time.

What the numbers show

The data shows how the share price and the total value of the investment have moved over different periods. It is important to distinguish between price return (the change in the share price) and total return (which includes distributions).

• Year-to-Date (YTD): The YTD price return is approximately 9.99%. The YTD total return is approximately 10.39%.

• One Year: The one-year price return is approximately 16.75%. The one-year total return is approximately 19.76%. We can estimate the price from roughly one year ago was $40.91.

• Three Years: The three-year price return is approximately 49.81%. The three-year total return is approximately 56.82%.

To understand the difference, imagine you had $10,000 invested in this ETF one year ago. Based on the one-year price return, your $10,000 would have grown to roughly $11,675 based on share price alone. However, because total return includes distributions, the overall value would be higher.

Income and distribution explanation

This ETF provides cash distributions. The current distribution yield is approximately 2.38%. This number describes the cash payments relative to the ETF's current price. Over the last 12 months, there were 2 payouts. These distributions are described as irregular or less frequent.

It is important to remember that a distribution yield is not the same as a total return. While distributions provide cash income, they do not guarantee that your original investment (the principal) will stay the same value.

NAV erosion explanation

"NAV" stands for Net Asset Value, which is the actual value of the assets held by the fund. "NAV erosion" happens when the value of those underlying assets drops significantly.

For this ETF, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this fund. This means the current data does not show signs of the substantial price deterioration that would trigger a high-risk warning.

Pros

• The fund has shown positive price returns over the one-year and three-year periods.

• The total return figures are higher than the price return figures, showing the impact of distributions.

• The erosion-risk measurements appear to be in good standing.

Cons

• Distributions are irregular and occur less frequently.

• The fund's performance is tied to its underlying holdings, such as large tech companies.

Beginner takeaway

When looking at ETFs, it is helpful to look at both the share price and the total return. The share price tells you how the cost of one unit is changing, while the total return shows you how much you would have actually gained or lost including any cash payments received. Always remember that receiving cash distributions is different from seeing your investment grow in value.