Share-split context: A reverse split was recorded on Nov 27, 2024 with coefficient 0.333333. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: TRADR 1X SHORT INNOVATION DAILY ETF (SARK)

What this ETF is trying to do

The TRADR 1X SHORT INNOVATION DAILY ETF (SARK) is an "inverse" ETF. This means it is designed to move in the opposite direction of a specific group of innovation-related assets.

What the numbers show

The current price of SARK is $23.92. Because this ETF has a history of reverse splits, we use split-adjusted returns to look at how it has performed. A reverse split is when multiple old shares are combined into fewer new shares, which causes the price per share to rise mechanically.

Here is how the returns look:

• Year-to-Date (YTD) Price Return: Approximately -20.93%

• Year-to-Date (YTD) Total Return: Approximately -20.93%

• One-Year Price Return: Approximately -13.83%

• One-Year Total Return: Approximately -11.29%

• Three-Year Price Return: Approximately -80.12%

• Three-Year Total Return: Approximately -73.02%

It is important to know the difference between price return and total return. The price return only shows how much the share price changed. The total return includes both the price change and any distributions (cash payments) made to investors.

Income and distribution explanation

SARK has a distribution yield of approximately 3.56%. This represents the cash distributions relative to the ETF price. The trailing distributions over the last year were approximately $0.85 per share. These payments happen on an irregular or less frequent basis, with the most recent count being one payout in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, or the actual underlying value, of the fund. While a falling share price is not the same thing as NAV erosion, we use an "erosion-risk score" to measure this risk.

SARK has an erosion score of 75, which is labeled as "Mild price erosion." This indicates a mild level of risk regarding price deterioration.

Pros

• The ETF provides a way to participate in an inverse strategy (moving opposite to innovation assets).

• It offers a distribution yield of approximately 3.56%.

Cons

• The ETF has experienced significant share-price declines over the last three years.

• The total return is lower than the price return in some periods, reflecting how distributions impact overall performance.

• The income rating for this ETF is a grade of "F."

Beginner takeaway

When looking at SARK, it is important to distinguish between the share price and the total return. Because this is an inverse ETF, its performance will behave differently than standard funds. Also, remember that a distribution yield tells you about cash payments, but it does not guarantee that the share price will stay stable.