ETF Education Report: PARNASSUS VALUE SELECT ETF (PRVS)

What this ETF is trying to do

The PARNASSUS VALUE SELECT ETF (ticker: PRVS) is an exchange-traded fund listed on the NYSE. While the specific investment goal isn't detailed in the data, it holds a variety of large companies across different industries. Based on its top holdings, it includes major names like Amazon, Microsoft, and Alphabet.

What the numbers show

The current price of one share is $32.64. Looking at how the price has moved, we can see some growth:

• Year-to-Date (YTD) Price Return: The share price has increased by approximately 16.53% since the start of the year.

• One-Year Price Return: Over the last 12 months, the share price grew by approximately 22.33%.

• Estimated Price Comparison: Roughly one year ago, the estimated price was $26.68.

It is important to know that "price return" only tracks the change in the share price itself. This ETF also provides "total return" figures, which include the impact of distributions. For example, the one-year total return was approximately 23.08%, which is higher than the price return alone.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The distribution yield is approximately 0.52%. This number describes the cash paid out relative to the current ETF price. The data shows that distributions for this fund are "irregular" or "less frequent," with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly over time. Some investors worry about this because it can shrink the principal (the original money put in). However, for PRVS, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the largest companies held by this ETF (note that this is a partial list):

• AMAZON.COM INC (7.13%)

• MICROSOFT CORP (6.97%)

• TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD ADR (4.91%)

• ALPHABET INC CLASS A (4.60%)

• VERIZON COMMUNICATIONS INC (4.43%)

• JPMORGAN CHASE & CO (4.15%)

• MICRON TECHNOLOGY INC (4.10%)

• UNION PACIFIC CORP (4.09%)

• ASTRAZENECA PLC (4.08%)

• VISA INC CLASS A (4.01%)

Pros

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

• The erosion-risk measurement is rated as "good."

Cons

• The distribution frequency is irregular, meaning you cannot rely on a steady schedule of cash payments.

• The income rating grade is a "C."

Beginner takeaway

When looking at an ETF like PRVS, it is helpful to distinguish between the share price moving up and the cash being paid out to you. This fund has seen its share price increase recently, and its total return (which includes distributions) is even higher than the price return alone. Always remember that a distribution yield tells you about cash payments, but it is not the same thing as your total return.