Understanding the CLEARSHARES OCIO ETF (OCIO)

What this ETF is trying to do

The CLEARSHARES OCIO ETF (ticker: OCIO) is an exchange-traded fund listed on the NYSE. While specific holdings are not listed in the current data, ETFs like this generally aim to provide investors with exposure to a specific group of assets or a certain investment strategy.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only how much the share price has changed.

• Total Return: This includes both the change in share price *and* the money paid out through distributions.

For OCIO, the numbers show:

• Year-to-Date (YTD): The price return is approximately 8.99%, while the total return is approximately 9.72%.

• One Year: The price return was about 1.89%, but the total return was higher at approximately 12.61%.

• Three Years: The price return was about 27.57%, while the total return was approximately 46.39%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $37.11, and the current price is $37.81.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 9.65%. This number describes the cash payments relative to the ETF's price. Over the last 12 months, there were 4 payouts, which usually happen on a quarterly basis.

It is important to remember that a high distribution yield does not mean the investor earned that same percentage as their total return. You must look at the "total return" figure to see the full picture of how the investment performed including those cash payments.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. StockValueFinder uses an erosion-risk score to measure this risk.

OCIO has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This suggests the fund's price trend has been relatively stable rather than showing significant deterioration.

Pros

• The ETF shows a higher total return than its price return, meaning distributions have added value to the overall performance.

• The erosion-risk score suggests a stable price trend.

Cons

• The one-year price return (1.89%) is significantly lower than the one-year total return (12.61%), meaning much of the yearly gain came from distributions rather than share price growth.

Beginner takeaway

When studying OCIO, notice the difference between the share price movement and the total return. While the share price itself grew slowly over the last year, the total return was much higher because of the cash distributions. Always check both numbers to understand how an ETF is performing.