ETF Education Report: CCM Affordable Housing MBS ETF (OWNS)

What this ETF is trying to do

The CCM Affordable Housing MBS ETF (ticker: OWNS) is an exchange-traded fund that trades on the NYSE. While specific holdings are not listed in this report, the name suggests it focuses on Mortgage-Backed Securities (MBS) related to affordable housing.

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 OWNS, the year-to-date (YTD) price return is approximately -6.04%. The one-year price return is approximately -5.80%.

• Total Return: This measures the share price change *plus* any cash distributions received. The YTD total return is approximately -3.17%, and the one-year total return is approximately -1.79%.

Because the total return numbers are higher (less negative) than the price return numbers, it shows that the cash distributions helped offset some of the share-price decline.

To visualize this, we can look at an estimated price from roughly one year ago, which was $17.42. The current price is $16.41.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 4.37%. This number describes the cash paid out relative to the current ETF price. Over the last 12 months, there were 4 distributions. These payments usually happen on a quarterly basis, often falling on a Tuesday or Wednesday.

It is important to remember that a high distribution yield does not guarantee an investor will earn that percentage as a total return.

NAV erosion explanation

"NAV erosion" is a term used to describe a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price is a "share-price decline," it does not always mean the NAV has dropped.

StockValueFinder uses an erosion-risk score to measure this risk. This ETF has an erosion score of 75, which is labeled as "Mild price erosion." There is no severe erosion-risk flag for this ETF.

Pros

• The ETF provides regular cash distributions (income).

• The total return is better than the price return, meaning distributions are helping to cushion the share-price decline.

Cons

• The ETF has experienced both share-price declines and negative total returns over the last year.

• The erosion-risk score indicates "mild price erosion."

Beginner takeaway

When looking at funds like OWNS, remember that the share price and the cash income (distributions) tell different parts of the story. A falling share price can be partially offset by distributions, which is why the "total return" is different from the "price return." Always look at both numbers to get a fuller picture of how an ETF is performing.

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*Disclaimer: This report is for educational purposes only. It does not provide financial advice and does not recommend buying, selling, or holding any security.*