What this ETF is trying to do

OOSB, known as the One One S&P 500 and Bitcoin ETF, is a crypto-related ETF traded on the NASDAQ. This fund is designed to provide investors with exposure to certain markets while also providing cash distributions.

What the numbers show

The current price of one share is $10.47. An estimated price from roughly one year ago was $18.91.

When looking at how the value has changed, we look at two different things:

• Price Return: This measures only the change in the share price. Over the last year, the one-year price return was -44.63%. For the current year to date (YTD), the price return is -18.41%.

• Total Return: This includes both the share price changes and the cash distributions paid out. The one-year total return was -40.65%, and the YTD total return is -17.97%.

Income and distribution explanation

This ETF has a distribution yield of 8.58%. Over the last year, the trailing distributions were $0.8987 per share. These payments are usually quarterly, but there were 6 payments made in the last 12 months.

It is important to understand that a high distribution yield does not mean an investor earned that percentage as their total return. A high yield can exist even when the share price is falling.

NAV erosion explanation

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 data does show a "severe" erosion label and an erosion score of 10. Because of this split-adjusted price trend and the low erosion score, a severe erosion-risk flag has been triggered. This is a measurement of price deterioration risk.

Pros

• The ETF provides a distribution yield of 8.58%.

• A large portion of the portfolio (53.65%) is held in FIRST AMERICAN GOVERNMENT OBLIGS X.

Cons

• There has been a significant share-price decline over the last year.

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

• There is a severe erosion-risk flag due to the price trends.

Beginner takeaway

When researching an ETF like OOSB, it is important to look at more than just the distribution yield. While the ETF pays out cash distributions, the actual share price has dropped significantly over the last year. Investors should distinguish between the cash they receive and the overall change in the value of their shares.