ETF Education Report: PACER NASDAQ INTERNATIONAL PATENT LEADERS ETF (PATN)

What this ETF is trying to do

The PACER NASDAQ International Patent Leaders ETF (ticker: PATN) is an exchange-traded fund. While the specific investment strategy details are not listed in the provided data, ETFs like this generally aim to track a specific group of companies—in this case, international leaders in patents.

What the numbers show

The current price of one share is $36.29. To understand how the price has moved, we can look at two different types of returns:

• Price Return: This measures only the change in the share price. The year-to-date (YTD) price return is approximately 34.64%. The one-year price return is approximately 33.96%.

• Total Return: This measures the share price change *plus* any distributions (cash payments) received. The YTD total return is approximately 35.01%, and the one-year total return is approximately 36.95%.

Because the total return is higher than the price return, it shows that distributions added value to the overall performance. We do not have data for three-year returns.

To visualize the price change, imagine you bought one share roughly one year ago at an estimated price of $27.09. Today, that same share is worth $36.29.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. PATN has a distribution yield of approximately 1.73%. This means the cash payments are about 1.73% of the current share price. Over the last 12 months, the fund made three distributions, totaling approximately $0.63 per share. The frequency of these payments is described as irregular or less frequent.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly over time. StockValueFinder uses an "erosion score" to measure this risk. For PATN, the erosion score is 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Pros

• The ETF has shown positive price returns both year-to-date and over the last year.

• The total return is higher than the price return, meaning distributions have contributed to overall gains.

• The erosion-risk measurements suggest no significant price deterioration has been detected.

Cons

• The distribution frequency is irregular, meaning payments do not happen on a set schedule.

• Total return data for the three-year period was not supplied.

Beginner takeaway

When looking at an ETF, it is important to distinguish between the price return (how much the share price moved) and the total return (the price move plus cash payments). PATN has seen growth in its share price over the last year and provides a modest distribution yield. Always remember that a high yield does not guarantee the share price will stay stable, though this specific fund currently shows no detected erosion risk.