What this ETF is trying to do

The Man Active Income ETF (ticker: MANI) is an exchange-traded fund listed on the NYSE. Based on its name and data, this ETF focuses on providing income to its investors. It holds a variety of different investments, including companies like Fidus Investment Corporation and SiriusPoint Ltd. Because the list of holdings provided is only a partial list, it represents the largest pieces of the fund rather than everything inside it.

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 only tracks how much the share price itself has changed.

• Total Return includes both the change in share price *and* the money paid out through distributions.

For MANI, the numbers show:

• Year-to-Date (YTD): The price return is approximately 2.54%, while the total return is approximately 6.11%.

• One-Year: The price return is approximately 1.83%, while the total return is approximately 8.54%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was about $25.15. The current price is approximately $25.61.

Income and distribution explanation

This ETF pays out cash to investors, which is called a distribution. The distribution yield for MANI is approximately 6.37%. This number tells you how much cash was distributed relative to the current ETF price.

The fund usually pays these distributions quarterly, and it has made four payments over the last 12 months. While a high yield can provide regular cash, it is important to remember that a high distribution yield does not guarantee the total return will be the same.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Investors often care about this because they want to make sure the money they put in stays stable while they collect income.

For MANI, 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. This suggests that the fund's price trend has not shown signs of significant deterioration according to these specific risk measurements.

Pros

• Higher Total Returns: The total return is higher than the price return, meaning distributions are adding value to the overall performance.

• Stable Risk Profile: The erosion-risk measurements suggest a stable price trend.

Cons

• Partial Data: The provided list of holdings is only a partial view of what the ETF actually owns.

• Price vs. Total Return: The share price itself has grown slowly, so investors rely heavily on distributions for higher returns.

Beginner takeaway

When looking at the Man Active Income ETF, remember that the share price and the cash distributions (yield) are two different things. While the share price has seen modest growth, the total return is higher because of the cash payments made to investors. Always look at the total return to see the full picture of how an income-focused ETF is performing.