Understanding the FREEDOM DAY DIVIDEND ETF (MBOX)

The FREEDOM DAY DIVIDEND ETF (ticker: MBOX) is an exchange-traded fund listed on the NYSE. This ETF focuses on providing returns through a combination of share price changes and cash distributions.

What this ETF is trying to do

MBOX is designed to provide investors with exposure to a variety of companies, often with an emphasis on dividends. Based on its top holdings, the fund includes companies from different sectors such as finance, energy, and technology.

Top Holdings:

• JPMorgan Chase & Co (3.08%)

• Morgan Stanley (2.76%)

• Marathon Petroleum Corp (2.63%)

• Energy Transfer LP (2.57%)

• Amgen Inc (2.55%)

• Eaton Corp PLC (2.51%)

• Enterprise Products Partners LP (2.46%)

• ExxonMobil Holdings Corp (2.42%)

• Dell Technologies Inc (2.38%)

• Automatic Data Processing Inc (2.31%)

*Note: This list is partial and represents only the largest holdings. Holdings can change over time.*

What the numbers show

When looking at MBOX, it is important to distinguish between price return (how much the share price moved) and total return (the share price movement plus the dividends paid out).

• Year-to-Date (YTD): The price return is approximately 17.31%, while the total return is approximately 19.09%.

• One-Year: The price return is approximately 17.57%, while the total return is approximately 20.03%.

• Three-Year: The price return is approximately 59.46%, while the total return is approximately 68.64%.

• Five-Year: The five-year total return is approximately 81.72%.

An estimated price from roughly one year ago was $34.90, compared to the current price of $41.03.

Income and distribution explanation

MBOX provides cash to investors through distributions. The current distribution yield is approximately 1.90%. This means the cash paid out is about 1.90% of the current share price.

The fund usually pays distributions on a quarterly basis. Over the last 12 months, there were 4 payouts. The trailing distributions amount to approximately $0.78 per share.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price movement, the fund has an erosion-risk score of 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Positive Returns: The fund has shown positive price returns and total returns over one, three, and five-year periods.

• Income Rating: The fund has an income rating grade of "A" with a score of 84.

• Price Stability: The data shows no detected price erosion.

Cons

• Yield Level: While the fund provides income, a 1.90% yield may be considered low depending on an investor's specific goals.

Beginner takeaway

MBOX is an ETF that has recently seen growth in both its share price and its total return. It pays regular distributions, typically four times a year. While it provides income, investors should always remember that a distribution yield is not the same as total return, and high yields do not guarantee that the share price will stay stable.