What this ETF is trying to do

The AAM SLC Low Duration Income ETF (LODI) is designed to provide investors with income. It focuses on "low duration," which generally means it tries to manage the risk associated with changes in interest rates.

What the numbers show

As of September 18, 2026, the share price of LODI was $25.05.

When looking at performance, it is important to distinguish between price return (the change in the share price) and total return (which includes the share price change plus distributions).

• Year-to-Date (YTD): The price return is -0.81%, but the total return is 2.54%.

• One Year: The price return is -1.14%, while the total return is 3.91%.

To put this in perspective, if you had invested $10,000 exactly one year ago at the estimated price of $25.34, the value of those shares alone would be worth approximately $9,885.53 today. However, the total return figure shows that the overall result was positive when distributions were included.

Income and distribution explanation

LODI usually pays out distributions monthly. Over the last 12 months, it made 12 payouts totaling $1.26 per share. This results in a distribution yield of approximately 5.04%.

It is important for beginners to remember that a high distribution yield alone can be misleading. A yield tells you how much cash the ETF is paying out relative to its price, but it does not guarantee that the original investment (the principal) will stay the same or grow.

NAV erosion explanation

"NAV erosion" happens when the net asset value of a fund declines over time, which can lead to a falling share price.

LODI has an erosion-risk score of 94, which is labeled as "Stable / sideways." The erosion severity is listed as "good," and the severe erosion-risk flag is false. This means the fund's price trend has not triggered a severe erosion warning.

Pros

• Positive Total Returns: While the share price declined slightly over the last year, the total return remained positive.

• Consistent Income: The fund provides regular monthly distributions.

• Stability: The erosion-risk score suggests the price has been relatively stable.

Cons

• Negative Price Return: The share price has decreased slightly both year-to-date and over the last 12 months.

• Limited Data: Three-year performance data was not supplied.

Beginner takeaway

LODI is an income-focused ETF. The data shows a gap between its price return (which is slightly negative) and its total return (which is positive). This happens because the cash distributions provided a gain that outweighed the small drop in the share price. Investors in these types of funds generally look for a balance between receiving monthly cash and keeping their principal stable.