Share-split context: A forward split was recorded on Feb 14, 2012 with coefficient 3.000003. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: VANECK RETAIL ETF (RTH)

What this ETF is trying to do

The VANECK RETAIL ETF (ticker: RTH) is an exchange-traded fund that focuses on the retail industry. It holds a collection of different companies involved in shopping and selling goods. Based on its top holdings, the fund includes large names like Amazon.com Inc, Walmart Inc, and Costco Wholesale Corp. Because it holds many different companies, it provides exposure to the retail sector rather than just one single business.

What the numbers show

When looking at how this ETF has performed, it is important to look at two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price. For example, the one-year price return was approximately 3.63%. The three-year price return was approximately 54.18%.

• Total Return: This includes the share price change plus any cash distributions paid out. The one-year total return was approximately 4.63%, and the three-year total return was approximately 58.55%.

This ETF has a history of "forward splits." This means that in the past, each old share became multiple new shares. When this happens, the price per share drops, but your total ownership stays the same. This is a normal part of how some stocks work and does not mean you lost money.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. The RTH ETF has a distribution yield of approximately 0.95%. This represents the cash distributed relative to the current ETF price. The trailing distributions were approximately $2.42 per share. It is important to remember that a distribution yield is not the same as total return, and receiving cash does not guarantee that the share price will stay the same.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly. StockValueFinder uses an erosion-risk score to help measure this risk. For RTH, the erosion score is 94, which is labeled as "Stable / sideways," and the severity is rated as "good." There is no severe erosion-risk flag for this ETF.

Pros

• The fund shows a history of positive total returns over one, three, and five years.

• The erosion-risk measurement is considered "good" and stable.

• It provides exposure to many well-known retail companies.

Cons

• The distribution frequency is described as "irregular" or "less frequent."

• The distribution yield is relatively low compared to some other types of income-focused funds.

Beginner takeaway

The VANECK RETAIL ETF tracks companies in the retail sector. When studying this fund, remember to distinguish between the share price movement (price return) and the overall performance including cash payments (total return). Always check the erosion-risk score to understand how stable the fund's value has been over time.

*** *Note: This report is for educational purposes only and does not constitute financial advice. It does not recommend buying, selling, or holding this ETF.*