PY: PRINCIPAL VALUE ETF
Understanding the Principal Value ETF (PY)
What this ETF is trying to do
The Principal Value ETF, which trades under the ticker "PY" on the NASDAQ, is an exchange-traded fund. While the specific investment strategy isn't detailed in the data, it holds a variety of different companies. Based on its top holdings, it includes large names like Apple Inc., Amazon.com Inc., and Bank of America Corp. This list is partial, meaning there are more companies in the fund that aren't shown here.
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 to investors.
For PY, the numbers show growth in both areas:
• Year-to-Date (YTD): The price return is approximately 8.70%, while the total return is approximately 10.12%.
• One Year: The price return was approximately 9.41%, and the total return was approximately 11.43%.
• Three Years: The price return was approximately 45.58%, and the total return was approximately 55.16%.
To give you an idea of price movement, the current price is $56.73. The estimated price from roughly one year ago was approximately $51.85.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 1.73%. It usually pays out these distributions quarterly, and it has made four payments over the last 12 months. It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same thing as your total return.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. Some investors worry that high payouts might cause this. 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
• Positive Returns: The ETF has shown positive price returns and total returns over the one-year and three-year periods.
• Income: The fund provides regular cash distributions.
Cons
• Partial Data: The list of holdings provided is only a partial list, so you are not seeing every company the ETF owns.
Beginner takeaway
When studying the Principal Value ETF, notice that the total return is higher than the price return. This happens because the total return counts both the rising share price and the cash distributions. Because there is no detected price erosion, the fund's value has been growing alongside its payouts according to the supplied data.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | APPLE INC | AAPL | 8.97% |
| 2 | AMAZON.COM INC | AMZN | 3.27% |
| 3 | BANK OF AMERICA CORP | BAC | 2.04% |
| 4 | PROCTER & GAMBLE CO | PG | 1.92% |
| 5 | UNITEDHEALTH GROUP INC | UNH | 1.88% |
| 6 | VISA INC CLASS A | V | 1.71% |
| 7 | MERCK & CO INC | MRK | 1.66% |
| 8 | JOHNSON & JOHNSON | JNJ | 1.64% |
| 9 | EXXONMOBIL HOLDINGS CORP | XOM | 1.58% |
| 10 | VERIZON COMMUNICATIONS INC | VZ | 1.51% |