Understanding the Invesco Agriculture Commodity Strategy No K-1 ETF (PDBA)

What this ETF is trying to do

The PDBA ETF is an investment fund listed on the NASDAQ. Based on its name, it focuses on agriculture commodity strategies. This means it is designed to give investors exposure to the markets involving things like crops and farm products.

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 only measures how much the share price itself has changed.

• Total Return: This includes both the change in share price *and* any cash distributions (dividends) paid out to investors.

For PDBA, the numbers show:

• Year-to-Date (YTD): The price return is approximately 10.44%. The total return is also approximately 10.44%.

• One Year: The price return was about 3.99%, while the total return was higher at approximately 7.45%.

• Three Years: The price return was about 15.40%, but the total return was much higher at approximately 43.93%.

To give you an idea of price movement, the current price is $37.55. The estimated price from roughly one year ago was approximately $36.11.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. PDBA has a distribution yield of approximately 3.01%. This means the amount of cash paid out is about 3.01% of the ETF's price.

The trailing distributions were approximately $1.13. The data shows that these payments happen on an irregular or less frequent basis, with one payment recorded in the last 12 months. It is important to remember that a distribution yield tells you about cash flow, but it does not guarantee that the investment will grow in value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. Investors often care about this because they want their original investment (the principal) to stay stable.

For PDBA, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This suggests the fund's price trend is currently considered stable by these specific measurements.

Pros

• The ETF has shown positive total returns over the one-year and three-year periods.

• The erosion-risk measurements suggest a stable price trend.

Cons

• Distributions are irregular and do not happen on a set schedule.

• The ETF has a very concentrated portfolio, with one holding making up most of its weight.

Top Holdings

As of the latest update, the fund's holdings are:

• Invesco Premier US Government Money Inst (IUGXX): 80.45%

*Note: Holdings can change over time.*

Beginner takeaway

When looking at PDBA, notice the difference between price return and total return. The total return is higher because it includes the cash distributions paid to investors. While the fund provides a distribution yield, always remember that price stability and cash payments are two different things.