ETF Education Report: OSCG

What this ETF is trying to do

The Leverage Shares 2X Long OSCR Daily ETF (ticker: OSCG) is an exchange-traded fund listed on the NASDAQ. While the specific investment strategy details are not provided in this report, the name suggests it is designed to provide leveraged exposure to a specific underlying asset.

What the numbers show

It is important to understand the difference between price return and total return.

• Price Return: This measures only the change in the share price. For this ETF, the year-to-date (YTD) price return is approximately 246.19%.

• Total Return: This measures the overall return, which includes both price changes and distributions. The YTD total return for this ETF is approximately 590.93%.

Because the total return is much higher than the price return, it shows that distributions have played a large role in the overall performance so far this year.

Income and distribution explanation

This ETF has a very high distribution yield of approximately 99.58%. The trailing distributions over the last year were 30.777.

For new investors, it is vital to know that a high distribution yield does not mean you have earned that percentage as your total return. Distributions are cash payments made to shareholders, but they do not guarantee that your original investment (your principal) will stay the same. This ETF has an irregular or less frequent distribution frequency, with one payout recorded in the last 12 months on a Friday.

NAV erosion explanation

"NAV" stands for Net Asset Value, which is essentially the value of the assets held by the fund. "NAV erosion" happens when the value of those underlying assets declines over time.

While this ETF does not currently have a "severe erosion-risk flag," the data for its erosion score is withheld due to insufficient verified price history. When an ETF has a very high distribution yield, investors often watch the share price closely. If a share price falls significantly while the fund is paying out large amounts of cash, it can be difficult to preserve the original amount of money invested.

Pros

• The YTD total return has been very high at approximately 590.93%.

• The YTD price return has also shown significant growth at approximately 246.19%.

Cons

• The distribution frequency is irregular and less frequent.

• There is no data available regarding the top holdings or the specific companies held within the fund.

• The erosion severity is currently unknown due to a lack of price history.

Beginner takeaway

When looking at ETFs, always distinguish between the share price and the total return. A high distribution yield can provide cash income, but it is not a guarantee of profit and does not protect your principal from price declines. Always look at the total return to see how much the investment has actually grown including all payments.