What this ETF is trying to do

The Macquarie-First Tr. Global Inf. Utilities Div. & Income Fund (MFD) focuses on global utility companies. Its goal is to provide both dividends and income to its investors.

What the numbers show

As of September 20, 2024, the current price of MFD is $8.45. The estimated price from roughly one year ago was about $7.36.

It is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes those price changes plus any cash distributions paid to you.

• One-Year Performance: The share-price return was 14.81%. However, the one-year total return was 27.26%.

• Year-to-Date (YTD) Performance: The share-price return is 7.37%, while the YTD total return is 15.96%.

• Three-Year Performance: The share price has declined by 10.01% over three years, but the three-year total return was 19.54%.

To see how the share price changed, imagine you invested $10,000 a year ago at the estimated price of $7.36. Based only on the share-price change (the 14.81% price return), your investment would be worth approximately $11,480.98 today. If you include the cash distributions, your total return would be even higher.

Income and distribution explanation

This ETF has a distribution yield of 9.47%. This number describes the cash distributions relative to the ETF's price. In the last year, the trailing distributions were $0.80. These payments usually happen every quarter (four times a year). While these distributions provide cash income, a high yield does not guarantee that your original investment will keep its value.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the actual assets held within the fund. This ETF has an erosion-risk score of 75, which is described as "mild price erosion." While a falling market price does not always prove that the NAV has declined, this score is a measurement used to track the risk of price deterioration.

Pros

• The ETF has provided strong total returns over the last year and year-to-date.

• It offers regular cash income through quarterly distributions.

Cons

• The share price has shown a decline over the last three years.

• There is a measurement of mild price erosion risk.

Beginner takeaway

When looking at an ETF, do not look at the distribution yield alone. A high yield can be misleading if the share price is falling. It is helpful to look at both the price return and the total return to see the full picture. Many income investors prefer funds where the share price stays steady or grows, rather than funds that experience price declines.