LBAY: LEATHERBACK LONG/SHORT ALTERNATIVE YIELD ETF
ETF Education Report: LEATHERBACK LONG/SHORT ALTERNATIVE YIELD ETF (LBAY)
What this ETF is trying to do
The LEATHERBACK LONG/SHORT ALTERNATIVE YIELD ETF (LBAY) is an exchange-traded fund listed on the NYSE. Based on its name and holdings, it seeks to provide alternative yield. Its portfolio is made up of 61 different holdings.
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 measures only the change in the share price.
• Total Return: This includes both the share price changes and the money paid out through distributions.
For LBAY, the numbers show:
• Year-to-Date (YTD): The price return is approximately 9.20%, while the total return is approximately 12.03%.
• One Year: The price return was approximately 8.06%, while the total return was approximately 12.28%.
• Three Year: The price return was approximately -1.03%, while the total return was approximately 10.40%.
• Five Year: The five-year total return was approximately 36.15%.
To give you an idea of price movement, the current price is $26.50. The estimated price from roughly one year ago was approximately $24.52.
Income and distribution explanation
Some investors look for ETFs that pay out cash regularly. This is called a distribution yield. LBAY has a distribution yield of approximately 3.75%. These distributions are usually paid out monthly, with 12 payouts recorded over the last year.
It is important to remember that a high distribution yield is not the same thing as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases significantly. Some investors worry that high payouts might come at the expense of the fund's value. However, for LBAY, the erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in this fund (note that this is a partial list):
• FIRST AMERICAN GOVERNMENT OBLIGS X (13.61%)
• HECLA MINING CO (5.65%)
• BARRICK MINING CORP (5.33%)
• ALAMOS GOLD INC CLASS A (4.94%)
• ESSENTIAL UTILITIES INC (4.77%)
• VISA INC CLASS A (4.75%)
• COMCAST CORP CLASS A (4.52%)
• OLD REPUBLIC INTERNATIONAL CORP (4.50%)
• KEURIG DR PEPPER INC (4.31%)
• AGNCP (4.29%)
*Holdings can change over time.*
Pros
• The fund has a positive total return over the one-year and three-year periods.
• The erosion-risk measurement is considered "good."
Cons
• The three-year price return has been slightly negative (-1.03%).
Beginner takeaway
When studying LBAY, notice the difference between its price return and its total return. The total return is higher because it includes the cash distributions paid to investors. Always look at both numbers to see how the fund is performing overall.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | FIRST AMERICAN GOVERNMENT OBLIGS X | FGXXX | 16.11% |
| 2 | HECLA MINING CO | HL | 5.37% |
| 3 | BARRICK MINING CORP | n/a | 5.36% |
| 4 | ESSENTIAL UTILITIES INC | WTRG | 5.04% |
| 5 | VISA INC CLASS A | V | 4.99% |
| 6 | ALAMOS GOLD INC CLASS A | n/a | 4.85% |
| 7 | AGNC INVESTMENT CORP FXDFR PRF PERPETUAL USD 25 SERIES F | AGNCP | 4.73% |
| 8 | EXXONMOBIL HOLDINGS CORP | XOM | 4.64% |
| 9 | KEURIG DR PEPPER INC | KDP | 4.55% |
| 10 | VAIL RESORTS INC | MTN | 4.53% |