What this ETF is trying to do

The SMART EARNINGS GROWTH 30 ETF (ticker: SGRT) is an exchange-traded fund traded on the NYSE. While the specific goal isn't detailed in the data, its name suggests a focus on companies with earnings growth. It holds a variety of different companies. Because the provided list is partial, we can only see the "Top Holdings." These include DELL TECHNOLOGIES INC (10.45%), MICRON TECHNOLOGY INC (10.29%), ELI LILLY AND CO (9.52%), WESTERN DIGITAL CORP (9.49%), and ARROW ELECTRONICS INC (9.16%).

What the numbers show

The current price of one share is $35.52. If we look back to roughly one year ago, the estimated price was about $23.58.

When looking at performance, it is important to understand two different numbers: price return and total return. Price return only tracks how much the share price itself changed. Total return includes both the price change and any cash distributions paid out.

• One-Year Performance: The one-year price return was 50.63%. The one-year total return was slightly higher at 50.87%.

• Year-to-Date (YTD) Performance: So far this year, the YTD price return is 42.03%, and the YTD total return is also 42.03%.

Income and distribution explanation

Some investors look for ETFs that pay them regular cash, known as distributions. This ETF has a distribution yield of approximately 0.11%. The trailing distributions were $0.04 per share. These payments are described as "irregular" or "less frequent." It is important to remember that a high distribution yield is not the same thing as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the underlying assets in the fund. Some investors worry about this because it can affect the fund's value over time. For this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." The severity is rated as "good," and there is no severe erosion-risk flag.

Pros

• Strong Price Growth: The ETF has shown significant share-price increases over the last year.

• Low Erosion Risk: According to the data, there are no signs of price erosion.

Cons

• Low Income: The distribution yield is very low at 0.11%.

• Irregular Payments: Distributions do not happen on a regular schedule.

Beginner takeaway

SGRT has seen large increases in its share price over the last year. However, it does not provide much cash income through distributions, and those payments do not happen frequently.