What this ETF is trying to do

The Macquarie Focused Large Growth ETF (ticker: LRGG) is an exchange-traded fund that focuses on large growth companies. Based on its top holdings, the fund invests in major technology and service companies.

Top Holdings:

• NVIDIA CORP (16%)

• ALPHABET INC CLASS C (10.78%)

• MICROSOFT CORP (8.83%)

• APPLE INC (6.71%)

• TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD ADR (5.55%)

• VISA INC CLASS A (4.7%)

• GE AEROSPACE (4.43%)

• INTUITIVE SURGICAL INC (4.4%)

• INTERCONTINENTAL EXCHANGE INC (4.36%)

• MOTOROLA SOLUTIONS INC (4.25%)

Please note that holdings can change over time.

What the numbers show

The current price of LRGG is $29.79. When looking at how the fund has performed, it is important to look at both price return and total return.

• Price Return: This measures only the change in the share price. The one-year price return was approximately -30.12%. The year-to-date (YTD) price return was approximately 0.64%.

• Total Return: This includes the share price change plus any distributions. The one-year total return was approximately -14.63%. The YTD total return was approximately 0.64%.

To understand the one-year price decline, we can look at an estimated price from roughly one year ago, which was approximately $29.88. If you had invested $10,000 into this ETF one year ago, your investment would have decreased to approximately $6,988 based on the one-year price return, before accounting for any distributions.

Income and distribution explanation

This ETF provides a distribution yield of approximately 0.15%. Distributions are cash payments made to investors. For LRGG, the distribution frequency is described as irregular or less frequent, with one payout recorded in the last 12 months. It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment (your principal) will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases. While a falling share price does not always mean the Net Asset Value (NAV) has declined, investors watch for this as a risk.

For LRGG, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag present. This suggests that, according to these specific measurements, the fund is not showing signs of high risk regarding price deterioration.

Pros

• The fund has a "good" erosion-risk severity rating.

• It holds large, well-known companies in the technology and finance sectors.

• The YTD total return is positive at approximately 0.64%.

Cons

• The one-year price return shows a significant share-price decline of approximately -30.12%.

• The distribution yield is quite low at approximately 0.15%.

Beginner takeaway

When looking at ETFs, it is helpful to distinguish between the share price and the total return. A share price can go down even if the fund pays out small amounts of cash. For investors who want steady income, they often look for funds where the price stays stable or grows slightly, rather than funds that experience large price drops. Always remember that a high distribution yield does not mean you have earned that much in total profit.