ETF Education Report: Tortoise Energy Independence Fund Inc (NDP)

What this ETF is trying to do

The Tortoise Energy Independence Fund Inc (ticker: NDP) is an exchange-traded fund (ETF) listed on the NYSE. While the specific investment goals are not detailed in this report, ETFs like this one generally aim to provide exposure to certain sectors of the market.

What the numbers show

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 both the price change and any cash distributions paid out to investors.

According to the data as of December 20, 2024:

• Year-to-Date (YTD): The YTD price return is approximately 40.95%. However, the YTD total return is higher at approximately 51.99%.

• One Year: The one-year price return is approximately 39.63%. The one-year total return is approximately 50.57%.

• Three Years: The three-year price return is approximately 90.72%, while the three-year total return is approximately 139.53%.

To understand the price movement, we can look at an estimated price from roughly one year ago, which was approximately $28.93. The current price is $40.40.

Income and distribution explanation

This ETF provides cash distributions to investors. The trailing distributions over the last year were $2.78 per share. The distribution yield is approximately 6.87%. This yield represents the cash paid out relative to the current ETF price. Distributions are usually made on a quarterly basis, and there were 5 payouts in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a situation where the Net Asset Value (the actual value of the assets held by the fund) decreases over time. While a falling share price can sometimes look like erosion, they are not always the same thing. For this ETF, there is no severe erosion-risk flag present. However, because the fund has a history of stock splits, the specific erosion score is withheld.

Pros

• The fund has shown significant positive total returns over the one-year and three-year periods.

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

Cons

• There is no data provided regarding the fund's top holdings or specific portfolio exposure.

• Investors should remember that a high distribution yield does not guarantee that the share price will stay stable.

Beginner takeaway

When looking at this ETF, always distinguish between the share price and the total return. The total return tells a more complete story because it includes the cash distributions you receive. While this fund has seen price growth and distributions, always remember that past performance does not predict future results.