What this ETF is trying to do

The Invesco Dorsey Wright Consumer Staples Momentum ETF (ticker: PSL) is an exchange-traded fund designed to invest in the consumer staples sector. This sector generally includes companies that sell essential items like food, beverages, and household goods. The fund uses a "momentum" strategy to select these companies.

What the numbers show

The data shows how the price of the ETF and its total value have changed over different periods. It is important to know that price return only tracks the change in the share price, while total return includes both the share price changes and the money paid out through distributions.

• Year-to-Date (YTD): The price return is approximately 10.10%, while the total return is approximately 10.68%.

• One-Year: The price return was approximately 0.92%, and the total return was approximately 1.69%.

• Three-Year: The price return was approximately 37.00%, and the total return was approximately 40.41%.

• Five-Year: The five-year total return was approximately 30.10%.

Based on an estimated price from roughly one year ago of $109.56, the current price is $110.57.

Income and distribution explanation

This ETF provides cash to investors through distributions. The current distribution yield is 0.725%. This number describes the cash distributions relative to the ETF's price. The fund usually pays out on a quarterly basis, with 4 payments recorded 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). 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, the fund has an erosion-risk score of 94, which is labeled as "Stable / sideways." The erosion severity is listed as "good," and there is no severe erosion-risk flag present.

Top Holdings

The following are the top holdings in the portfolio (note that this list is partial):

• US Foods Holding Corp (5.31%)

• Costco Wholesale Corp (4.86%)

• Church & Dwight Co Inc (4.65%)

• Casey's General Stores Inc (4.60%)

• Performance Food Group Co (3.96%)

• Philip Morris International Inc (3.63%)

• Darling Ingredients Inc (3.47%)

• Monster Beverage Corp (3.36%)

• The Estee Lauder Companies Inc Class A (3.14%)

• Altria Group Inc (3.08%)

Pros and Cons

Pros:

• The fund shows a history of positive total returns over three-year and five-year periods.

• The erosion-risk score suggests a stable price trend.

Cons:

• The distribution yield is relatively low at 0.725%.

Beginner takeaway

When looking at PSL, it is helpful to distinguish between the share price and the total return. While the share price moves up and down, the total return accounts for the extra value provided by distributions. This fund focuses on consumer staples and currently shows a stable erosion-risk profile according to the supplied data.