Understanding the Miller Value Partners Leverage ETF (MVPL)

What this ETF is trying to do

The Miller Value Partners Leverage ETF (MVPL) is a type of investment called a leveraged ETF. This means it is designed to move more significantly than the market it follows. According to the data, its main holding is the Direxion Daily S&P 500® Bull 2X ETF, which makes up 99.94% of the fund.

What the numbers show

The current price of MVPL is $45.02. We can look at how the share price has changed over different periods:

• Year-to-Date (YTD) Price Return: The share price has increased by approximately 23.93% since the start of the year.

• One-Year Price Return: The share price has increased by approximately 23.82% over the last year.

It is important to know that "price return" only tracks the change in the share price itself. When we look at "total return," we include both the price changes and any cash payments (distributions) made to investors.

• YTD Total Return: Approximately 23.93%.

• One-Year Total Return: Approximately 25.20%.

Because the total return is higher than the price return over the last year, it shows that distributions added to the overall value. For a visual example, an estimated price from roughly one year ago was $36.36.

Income and distribution explanation

This ETF provides some cash to investors through distributions. The distribution yield is approximately 0.88%. This number describes the cash payments relative to the current ETF price. The data shows that distributions are paid out irregularly, with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. Some investors worry about this because they want to keep their original investment amount stable. For MVPL, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The ETF has shown positive price returns both year-to-date and over the last year.

• The total return is higher than the price return, meaning distributions have added value to the overall performance.

Cons

• This is a leveraged ETF, which means it can be more volatile (move up or down more sharply) than standard funds.

• The distribution frequency is irregular, meaning you cannot rely on a steady schedule of cash payments.

Beginner takeaway

When looking at MVPL, it is important to distinguish between price return and total return. While the share price has grown, the total return is even higher because of distributions. Also, remember that while this fund provides some income, a high yield is not the same as total growth. Always remember that leveraged funds carry different risks than traditional funds.