OTGL: OTG LATIN AMERICA ETF
OTG LATIN AMERICA ETF (OTGL) Educational Report
What this ETF is trying to do
The OTG Latin America ETF (OTGL) is an exchange-traded fund that focuses on companies located in Latin America. It holds a variety of different stocks to provide exposure to that region. Based on the top holdings provided, the fund includes companies like VALE SA ADR, BANCO ITAU CHILE, and SOUTHERN COPPER CORP. Please note that these are only the top holdings and not all 56 companies in the fund. Holdings can change over time.
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 the change in the share price. For OTGL, the one-year price return was approximately 13.58%. The year-to-date (YTD) price return was approximately 8.28%.
• Total Return: This includes the share price change plus any cash distributions paid out to investors. The one-year total return was approximately 16.63%, and the YTD total return was approximately 9.76%.
To give you an idea of price movement, the current price is $10.87. The estimated price from roughly one year ago was approximately $9.57.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. OTGL has a distribution yield of approximately 2.54%. This means the cash distributed is about 2.54% of the ETF's price. The fund usually pays these out quarterly, and it has made 4 payments over the last 12 months. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an "erosion-risk score" to help measure this risk. For OTGL, the erosion score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The fund has shown positive price returns and total returns over the last year.
• The erosion-risk measurement is rated as "good."
Cons
• Total return data for the last three years was not supplied.
• The income rating grade is a "C."
Beginner takeaway
When studying OTGL, remember that price returns and total returns tell different stories. The price return only shows how the share price moved, while the total return includes the cash distributions you might have received. Always look at both to get a fuller picture of how an ETF has performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | XP INC CLASS A | XP | 5.50% |
| 2 | PETROLEO BRASILEIRO SA PETROBRAS ADR | PBR | 4.14% |
| 3 | BANCO ITAU CHILE | n/a | 3.88% |
| 4 | NU HOLDINGS LTD ORDINARY SHARES CLASS A | NU | 3.88% |
| 5 | SOUTHERN COPPER CORP | SCCO | 3.88% |
| 6 | VALE SA ADR | VALE | 3.79% |
| 7 | YPF SA ADR | YPF | 3.23% |
| 8 | ITAU UNIBANCO HOLDING SA ADR | ITUB | 3.19% |
| 9 | AMBEV SA ADR | ABEV | 3.07% |
| 10 | INTERCORP FINANCIAL SERVICES INC | n/a | 3.03% |