QB: ProShares Nasdaq100 Dynamic Buffer ETF
ETF Education Report: ProShares Nasdaq100 Dynamic Buffer ETF (QB)
What this ETF is trying to do
The ProShares Nasdaq100 Dynamic Buffer ETF (ticker: QB) is an exchange-traded fund. Based on its top holdings, the fund uses financial tools like "Total Return Swaps" and "Repurchase Agreements" to manage its strategy. It also holds shares in several large technology companies.
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 the change in the share price.
• Total Return: This includes the change in share price plus any cash distributions (dividends) paid out to investors.
For QB, the numbers show growth over the last year:
• Year-to-Date (YTD): The price return is approximately 16.83%, while the total return is approximately 17.36%.
• One-Year: The price return is approximately 19.67%, while the total return is approximately 20.69%.
To give you an idea of price movement, the estimated price from roughly one year ago was $41.31. The current price is $49.43.
Income and distribution explanation
Some investors look for ETFs that pay out cash regularly. This is called the distribution yield. For QB, the distribution yield is approximately 0.75%. The fund usually pays these distributions quarterly, and it has made 4 payments over the last 12 months.
It is important to remember that a distribution yield tells you how much cash was paid out, but it is not the same as your total return.
NAV erosion explanation
NAV erosion refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an erosion-risk score to help monitor this.
For QB, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• Positive Returns: Both the price return and total return have been positive over the last year.
• No Erosion Detected: The current data shows a "good" erosion severity rating.
Cons
• Partial Data: The list of holdings provided is only a partial list of the 104 total holdings in the fund.
• Lower Income Grade: The income rating grade for this ETF is a "C."
Beginner takeaway
When studying QB, notice the difference between the share price movement and the total return. While the share price has gone up, the total return is slightly higher because it includes the cash distributions. Always remember that holdings can change over time, and looking at past performance does not guarantee what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | TOTAL RETURN SWAP | n/a | 78.81% |
| 2 | REPURCHASE AGREEMENT | n/a | 20.29% |
| 3 | NVIDIA CORP | NVDA | 8.20% |
| 4 | APPLE INC | AAPL | 7.32% |
| 5 | MICROSOFT CORP | MSFT | 5.34% |
| 6 | MICRON TECHNOLOGY INC | MU | 4.82% |
| 7 | AMAZON.COM INC | AMZN | 4.66% |
| 8 | ADVANCED MICRO DEVICES INC | AMD | 3.71% |
| 9 | ALPHABET INC CLASS A | GOOGL | 3.55% |
| 10 | TESLA INC | TSLA | 3.47% |