What this ETF is trying to do

The One One Nasdaq100 and Bitcoin ETF (ticker: OOQB) is a crypto-related ETF traded on the NASDAQ exchange. Its current price is $9.94. This fund's strategy involves exposure to certain assets, including a large holding in FIRST AMERICAN GOVERNMENT OBLIGS X (FGXXX), which makes up 54.45% of its portfolio.

What the numbers show

The numbers for OOQB show that the share price has declined significantly. The estimated price from roughly one year ago was about $16.60. Compared to the current price of $9.94, the one-year price return is -40.10%.

To understand the full picture, we look at both price return and total return:

• Price Return: This measures only the change in the share price. The one-year price return was -40.10%, and the year-to-date (YTD) price return is -18.89%.

• Total Return: This includes both the share price change and any cash distributions paid out. The one-year total return was -34.74%, and the YTD total return is -18.43%.

If you had invested $10,000 into the share price alone a year ago, your investment would be worth approximately $5,990 today based on the price return.

Income and distribution explanation

OOQB has a high distribution yield of 10.84%. In the last 12 months, the trailing distributions totaled $1.08 per share. The fund usually pays out on a quarterly basis, though it had 7 payouts over the last year. Most of these payments have occurred on Wednesdays.

It is important to remember that a high distribution yield can be misleading. A high yield shows how much cash is being paid out relative to the price, but it does not guarantee that the overall investment is growing.

NAV erosion explanation

Investors often ask about "NAV erosion." NAV (Net Asset Value) refers to the actual value of the fund's assets. 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, there is significant evidence of price erosion. The fund has a "severe erosion-risk flag" because its price trend and erosion score indicate substantial price deterioration. The erosion score is 10, which is labeled as "Severe price erosion."

Pros

• High Distribution Yield: The ETF offers a distribution yield of 10.84%.

• Cash Income: The fund has provided frequent cash distributions (7 times in the last year).

Cons

• Significant Price Decline: The share price has dropped by 40.10% over the last year.

• Severe Erosion Risk: The fund carries a severe erosion-risk flag and a high score for price erosion.

Beginner takeaway

While OOQB provides a high distribution yield, the share price has fallen sharply. When looking at this ETF, it is important to look at the total return rather than just the dividend yield, as the declining share price has impacted the overall value of the investment.