PTY: PIMCO Corporate & Income Opportunity Fund

What this ETF is trying to do

The PTY ETF is a fund traded on the NYSE. It is designed to provide investors with regular income through distributions.

What the numbers show

When looking at an ETF, it is important to know the difference between "price return" and "total return."

• Price Return: This only tracks how much the share price itself has changed.

• Total Return: This includes both the change in share price and the money paid out through distributions.

For PTY, the numbers show different results depending on how you look at them:

• Year-to-Date (YTD): The price return is approximately -15.27%, while the total return is approximately -7.50%.

• One Year: The price return was approximately -24.36%, but the total return was approximately -15.24%.

• Three Years: The price return was approximately -21.25%, but the total return was actually positive at approximately 8.09%.

To visualize the price change, the estimated price from roughly one year ago was $14.45. The current price is $10.93.

Income and distribution explanation

This ETF has a high distribution yield of approximately 13.04%. This means the fund pays out a significant amount of cash relative to its price. These distributions usually happen monthly, and the most common day for a payout is Thursday.

It is important to remember that a high distribution yield does not mean you are making that much profit. You must look at the total return to see how the share price and the cash payments work together.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. While a falling share price does not always mean NAV is eroding, StockValueFinder uses an "erosion-risk score" to measure this risk.

PTY has an erosion score of 55, which is labeled as "moderate price erosion." This indicates a moderate level of risk regarding price deterioration.

Pros

• The fund offers a high distribution yield of approximately 13.04%.

• Over a three-year period, the total return was positive at approximately 8.09%, even though the share price itself went down.

Cons

• The fund has experienced significant share-price declines over the last year and year-to-date.

• There is a moderate erosion-risk score of 55.

Beginner takeaway

High yields can be helpful for people looking for cash income, but they can also be misleading. If the share price drops significantly, it can cancel out the benefits of the cash payments. Always look at the "total return" to get a clearer picture of how an ETF is performing over time.