ETF Education Report: SDCI

What this ETF is trying to do

The USCF Summerhaven Dynamic Commodity Strategy No K-1 Fund (SDCI) is an Exchange Traded Fund (ETF) traded on the NYSE. While the specific holdings are not listed in the current data, this type of fund generally focuses on commodity strategies.

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 both the share price change and any cash distributions (dividends) paid out.

For SDCI, the numbers show growth over different time periods:

• Year-to-Date (YTD): The price return is approximately 42.81%. The total return is also approximately 42.81%.

• One Year: The price return was approximately 37.14%, while the total return was higher at approximately 42.10%.

• Three Years: The price return was approximately 76.34%, while the total return was approximately 96.00%.

To visualize the price change, if you had purchased one share at the estimated price from roughly one year ago ($22.94), the current price is $31.46.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. SDCI has a distribution yield of approximately 2.58%. This means the cash distributed is about 2.58% of the current share price. The trailing distributions were approximately $0.81.

It is important to note that the distribution frequency for this fund is "irregular" or "less frequent," with one payout recorded in the last 12 months. A high yield alone does not guarantee that an investment will grow in value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. StockValueFinder uses an "erosion-risk score" to help measure this risk.

For SDCI, the erosion score is 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

• The fund has shown positive price returns over the one-year and three-year periods.

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

• The fund has a high income rating grade of "A."

Cons

• The distributions are irregular and do not happen on a set schedule.

• There is no data provided regarding the specific top holdings in the portfolio.

Beginner takeaway

When studying SDCI, notice the difference between the share price movement and the total return. Because the total return is higher than the price return, it shows that the cash distributions added value to the investment over time. Always remember that past performance does not predict future results.