Understanding the Neuberger Berman Disrupters ETF (NBDS)

The Neuberger Berman Disrupters ETF (ticker: NBDS) is an exchange-traded fund designed to invest in companies that are changing their industries. This ETF focuses on "disruptors," which are businesses often found in high-growth sectors like technology and healthcare.

What this ETF is trying to do

NBDS seeks to capture growth by investing in companies that are disrupting traditional markets. Based on its top holdings, the fund has significant exposure to major technology and semiconductor companies. These include NVIDIA Corp (7.71%), Advanced Micro Devices Inc (6.28%), and Snowflake Inc (4.72%). Because the holdings list is partial, these represent only some of the 33 total companies held in the fund.

What the numbers show

The performance of NBDS can be looked at in two ways: price return and total return. Price return only tracks the change in the share price, while total return includes both price changes and any distributions paid out.

• Year-to-Date (YTD): The YTD price return is approximately 19.85%. For this period, the total return is also 19.85%.

• One-Year: The one-year price return is approximately 15.07%. The one-year total return is higher, at approximately 15.50%.

• Three-Year: The three-year price return is approximately 91.49%. The three-year total return is approximately 92.21%.

To give you an idea of the price movement, the estimated price from roughly one year ago was $36.93. The current price is $42.49.

Income and distribution explanation

This ETF provides a small amount of cash income through distributions. The distribution yield is approximately 0.32%. It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same as your total return.

The fund's distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not always the same thing.

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, the fund has an erosion score of 100, which is labeled as "No price erosion detected," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.

Pros

• Strong Price Growth: The fund has shown significant positive price returns over the one-year and three-year periods.

• Low Erosion Risk: The current data shows no detected price erosion.

Cons

• Low Distribution Yield: For investors looking for high regular income, the 0.32% yield is relatively low.

• Irregular Payouts: The distributions do not follow a frequent or predictable schedule.

Beginner takeaway

NBDS is an ETF focused on growth-oriented companies. While it has shown strong price increases over the last three years, it is not primarily designed to be a high-income fund, as evidenced by its low and irregular distribution yield.