PHEQ: PARAMETRIC HEDGED EQUITY ETF
What this ETF is trying to do
The Parametric Hedged Equity ETF (PHEQ) is an exchange-traded fund listed on the NYSE. While the specific strategy details are not provided, the fund holds a variety of large companies across different sectors. Based on its top holdings, it has significant exposure to major technology and growth companies like NVIDIA, Apple, and Microsoft.
What the numbers show
The data shows that PHEQ has experienced growth in its share price recently.
• Year-to-Date (YTD): The YTD price return is approximately 9.81%. When including distributions, the YTD total return is approximately 10.21%.
• One-Year Performance: Over the last year, the share-price return was approximately 11.71%. The one-year total return, which includes the impact of distributions, was approximately 12.69%.
To put this in perspective, the current price is $35.76. The estimated price from roughly one year ago was approximately $32.01.
Income and distribution explanation
PHEQ provides cash distributions to investors. The distribution yield is approximately 0.81%. This number describes the cash paid out relative to the current ETF price. The fund typically pays these distributions on a quarterly basis, with 4 payouts recorded over the last 12 months.
It is important to remember that "price return" and "total return" are different. The price return only tracks how much the share price moved. The total return includes both the price movement and the cash distributions received.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, looking at price-based evidence, the fund shows an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• Positive Returns: The fund has shown positive price returns and total returns over both the year-to-date and one-year periods.
• Low Erosion Risk: Based on the supplied erosion score, there are no signs of significant price deterioration.
Cons
• Lower Yield: With a distribution yield of approximately 0.81%, this fund may not be the primary choice for investors seeking very high levels of immediate cash income.
Beginner takeaway
PHEQ is an ETF that has recently seen its share price and total value increase. It holds many well-known companies, such as NVIDIA and Apple. While it pays regular distributions, the yield is relatively modest. Investors should distinguish between the growth in share price and the cash received from distributions when looking at overall performance.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 8.35% |
| 2 | APPLE INC | AAPL | 7.63% |
| 3 | MICROSOFT CORP | MSFT | 5.80% |
| 4 | AMAZON.COM INC | AMZN | 3.91% |
| 5 | ALPHABET INC CLASS A | GOOGL | 3.15% |
| 6 | BROADCOM INC | AVGO | 2.69% |
| 7 | ALPHABET INC CLASS C | GOOG | 2.66% |
| 8 | META PLATFORMS INC CLASS A | META | 2.47% |
| 9 | MICRON TECHNOLOGY INC | MU | 1.94% |
| 10 | TESLA INC | TSLA | 1.88% |