What this ETF is trying to do

The PACER BLUESTAR DIGITAL ENTERTAINMENT ETF (ticker: ODDS) is an exchange-traded fund designed to invest in the digital entertainment sector. Based on its top holdings, the fund focuses on companies involved in gaming and interactive media, such as Tencent Holdings Ltd, Evolution AB, DraftKings Inc, and Flutter Entertainment PLC.

What the numbers show

The data shows that the share price of ODDS has experienced a decline recently.

• Year-to-Date (YTD): The price return is approximately -17.64%.

• One-Year: The one-year price return is approximately -26.58%.

• Three-Year: Over a three-year period, the price return was approximately 31.39%.

It is important to distinguish between price return (the change in the share price) and total return (which includes distributions). For example, the one-year total return was approximately -26.05%, which is slightly different from the price return of -26.58%.

An estimated price from roughly one year ago was $32.70, while the current price is $24.01.

Income and distribution explanation

ODDS provides some cash distributions to investors. The distribution yield is approximately 0.77%. This means the amount of cash paid out relative to the ETF's price is less than 1%. The fund usually pays these distributions on a quarterly basis, with four payouts recorded over the last 12 months.

NAV erosion explanation

The fund has a severe erosion-risk flag. This means that StockValueFinder's screening rules detected significant price deterioration. The fund has an erosion-risk score of 30, which is labeled as "Significant price erosion."

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. While the market price of the shares has fallen significantly, we cannot use this alone to prove that the Net Asset Value (NAV) itself has declined.

Pros

• Long-term price growth: Looking at a three-year window, the fund's price return was positive at approximately 31.39%.

• Sector exposure: The fund provides access to a variety of companies in the digital entertainment and gaming space.

Cons

• Recent price decline: The fund has seen a significant share-price decline over the last year.

• High erosion risk: The fund carries a severe erosion-risk flag due to its price trends.

• Low income rating: The fund has an income rating grade of "F."

Beginner takeaway

When researching ODDS, it is important to look at both the price movement and the total return. While the fund has shown growth over a three-year period, it has faced significant price declines in the short term. Additionally, while the fund pays distributions, the yield is relatively low, and the fund currently carries a severe erosion-risk flag due to its recent price performance.