Understanding the COASTAL COMPASS 100 ETF (ROPE)

The COASTAL COMPASS 100 ETF (ticker: ROPE) is an exchange-traded fund listed on the NYSE. This ETF is designed to provide investors with exposure to a variety of companies across different sectors.

What this ETF is trying to do

ROPE holds a collection of 53 different investments. While the full list is not shown here, its top holdings include companies like Amgen Inc, AbbVie Inc, Philip Morris International Inc, and Mondelez International Inc. Because the holdings list provided is partial, these represent only the largest positions in the fund. It is important to remember that the companies held within an ETF can change over time.

What the numbers show

When looking at how this ETF has performed, it is important to distinguish between "price return" and "total return."

• Price Return: This measures only the change in the share price. For ROPE, the year-to-date (YTD) price return is approximately 9.78%. Over the last year, the one-year price return was approximately 16.03%.

• Total Return: This includes both the share price changes and the money paid out through distributions. The YTD total return is approximately 10.81%, and the one-year total return was approximately 18.22%.

Based on an estimated price from roughly one year ago of $25.58, the current price is $29.68.

Income and distribution explanation

ROPE provides cash distributions to investors. The distribution yield is approximately 1.78%. This number describes the cash paid out relative to the current ETF price. The fund usually pays these distributions on a quarterly basis, with 4 payments recorded over the last 12 months.

It is important to understand that a distribution yield is not the same as a total return. While distributions provide cash income, they are separate from the growth of the share price itself.

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, regarding price erosion (the decline in the market price of the shares), the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• Positive Returns: Both the price return and total return have been positive for both the year-to-date period and the past year.

• Low Erosion Risk: The data shows no detected price erosion.

Cons

• Partial Data: The provided list of holdings is only a partial view of the total 53 holdings.

• Yield Level: The distribution yield is relatively modest at approximately 1.78%.

Beginner takeaway

ROPE has shown both share-price growth and total returns (which include distributions) over the past year. While it provides quarterly income, the primary driver of its recent performance appears to be the increase in share price. Always remember that past performance does not guarantee what will happen in the future.