PSWD: XTRACKERS CYBERSECURITY SELECT EQUITY ETF
What this ETF is trying to do
The XTRACKERS CYBERSECURITY SELECT EQUITY ETF (ticker: PSWD) is an exchange-traded fund that focuses on the cybersecurity industry. This means it invests in companies that work on digital security. Based on its top holdings, the fund includes companies like OKTA INC CLASS A, PALO ALTO NETWORKS INC, and CROWDSTRIKE HOLDINGS INC CLASS A. Because the list of holdings provided is partial, these are just some of the companies in the fund, not all of them.
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 measures only how much the share price has changed.
• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out.
For PSWD, the numbers show growth over different time periods:
• Year-to-Date (YTD): The price return is approximately 51.71%, while the total return is approximately 51.86%.
• One Year: The price return was approximately 32.93%, and the total return was approximately 33.94%.
• Three Years: The price return was approximately 95.86%, and the total return was approximately 101.66%.
To give you an idea of price movement, the estimated price from roughly one year ago was $37.73. The current price is $50.15.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. The distribution yield for this ETF is approximately 0.54%. This number describes the cash distributions relative to the current ETF price. Over the last 12 months, there were 3 distributions, which occurred on a Friday. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry that high payouts might cause the fund's value to shrink over time. However, for this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this fund.
Pros
• Strong Price Growth: The ETF has shown significant price returns over the last year and three years.
• Positive Total Returns: The total return figures are higher than the price returns, meaning distributions added to the overall value.
• Low Erosion Risk: The data shows no detected price erosion.
Cons
• Lower Yield: The distribution yield of 0.54% is relatively low for investors specifically seeking high regular income.
• Irregular Payouts: The distributions are described as "irregular" or "less frequent," meaning they do not happen on a set schedule.
Beginner takeaway
The PSWD ETF focuses on the cybersecurity sector and has shown strong price and total returns recently. While it does pay distributions, the yield is modest, and the payments do not happen on a regular schedule. Always remember that price returns and total returns are different, and high yields in other funds can sometimes be linked to higher risks.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | OKTA INC CLASS A | OKTA | 6.55% |
| 2 | PALO ALTO NETWORKS INC | PANW | 6.23% |
| 3 | CROWDSTRIKE HOLDINGS INC CLASS A | CRWD | 6.16% |
| 4 | FORTINET INC | FTNT | 5.99% |
| 5 | QUALYS INC | QLYS | 5.45% |
| 6 | VARONIS SYSTEMS INC | VRNS | 5.14% |
| 7 | RUBRIK INC CLASS A SHARES | RBRK | 5.12% |
| 8 | SENTINELONE INC CLASS A | S | 4.51% |
| 9 | TENABLE HOLDINGS INC | TENB | 4.41% |
| 10 | F5 INC | FFIV | 4.20% |