Share-split context: A forward split was recorded on Feb 14, 2012 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

What this ETF is trying to do

The VanEck Pharmaceutical ETF (PPH) is designed to give investors exposure to the pharmaceutical industry. It holds a variety of companies involved in making medicines and healthcare products. Based on its top holdings, the fund includes large companies like Eli Lilly and Co, Merck & Co Inc, and Novartis AG ADR. Because the holdings list provided is partial, these represent the largest companies in the fund rather than every single one. Please note that holdings can change over time.

What the numbers show

When looking at PPH, it is important to understand the difference between price return and total return. Price return only tracks how much the share price moves. Total return includes both the price movement and the money paid out through distributions.

The data shows the following:

• Year-to-Date (YTD): The price return is approximately 6.13%, while the total return is approximately 7.96%.

• One-Year: The price return is approximately 17.23%, while the total return is approximately 19.61%.

• Three-Year: The price return is approximately 37.79%, while the total return is approximately 46.26%.

• Five-Year: The total return is approximately 65.43%.

The fund has a history of forward splits. In its last recorded split in 2012, each old share became two new shares. This means the price per share was adjusted downward at that time, but your total ownership stayed the same.

Income and distribution explanation

PPH provides cash distributions to investors. The trailing distributions are approximately $2.14 per share. This results in a distribution yield of approximately 1.95%. The fund usually pays these out on a quarterly basis, having made 4 payments over the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not always the same thing.

For PPH, the erosion-risk score is 100, which is labeled as "No price erosion detected," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF. 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.

Pros

• Strong Price Performance: The fund has shown positive price returns over the one-year and three-year periods.

• Total Returns: The total return figures are higher than the price return figures, showing that distributions have added value to the overall performance.

• Income Rating: The fund has an income rating grade of "A."

Cons

• Sector Concentration: Because this ETF focuses on pharmaceuticals, its performance is tied specifically to that industry.

Beginner takeaway

PPH is an ETF focused on the pharmaceutical sector. It has shown growth in both its share price and its total return over the last few years. While it pays a distribution yield of about 1.95%, investors should remember that total return is the most complete way to see how much value the fund has actually created.