Understanding the Relative Strength Managed Volatility Strategy ETF (RSMV)

The Relative Strength Managed Volatility Strategy ETF (ticker: RSMV) is an exchange-traded fund listed on the NYSE. This ETF uses a strategy designed to manage volatility through relative strength.

What this ETF is trying to do

RSMV invests in a variety of assets to follow its specific volatility strategy. Based on the top holdings provided, the fund includes a mix of bond ETFs and individual stocks. Because the list of holdings is partial, it only shows some of the 38 total companies and funds held by the ETF.

Top Holdings:

• iShares Core US Aggregate Bond ETF (AGG): 21.34%

• State Street® SPDR® Short Term TRS ETF (SPTS): 9.91%

• Intel Corp (INTC): 2.26%

• Advanced Micro Devices Inc (AMD): 2.24%

• Arm Holdings PLC ADR (ARM): 2.21%

• Applied Materials Inc (AMAT): 2.17%

• Lam Research Corp (LRCX): 2.11%

• ASML Holding NV ADR (ASML): 2.09%

• GE Vernova Inc (GEV): 2.09%

• Texas Instruments Inc (TXN): 2.09%

Please note that holdings 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 only tracks the change in the share price. Total return includes both the share price change and any distributions (cash payments) made to investors.

• Year-to-Date (YTD): The YTD price return is approximately 6.32%. The YTD total return is also approximately 6.32%.

• One-Year Performance: The one-year price return was approximately 10.89%. However, the one-year total return was higher, at approximately 11.99%.

• Price Comparison: The current price is $29.11. An estimated price from roughly one year ago was approximately $26.25.

Income and distribution explanation

This ETF provides some cash income through distributions. The current distribution yield is approximately 0.94%. This number describes the cash payments relative to the ETF's price.

The distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. It is important to remember that a distribution yield is not the same as a 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). 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.

Regarding price erosion (the decline in the market price of the shares), the ETF 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.

Pros

• The ETF has shown positive price returns over the last year.

• The total return is higher than the price return, meaning distributions added value to the overall performance.

• The erosion-risk measurements suggest no significant price deterioration has been detected.

Cons

• Distributions are irregular and do not happen on a frequent, predictable schedule.

• The fund's performance data for the three-year period was not supplied.

Beginner takeaway

RSMV is an ETF that has recently seen both share-price growth and total returns that include distributions. While it provides some income, the payments are not frequent. Investors should look at both price returns and total returns to understand the full picture of how the fund has performed.