SHPP: PACER INDUSTRIALS AND LOGISTICS ETF
ETF Education Report: PACER Industrials and Logistics ETF (SHPP)
What this ETF is trying to do
The PACER Industrials and Logistics ETF (ticker: SHPP) is an exchange-traded fund that focuses on companies involved in industrial sectors and logistics. This means it holds businesses that help move goods around the world or manufacture products.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return (how much the share price changed) and total return (the share price change plus any cash distributions received).
Based on the data provided:
• Year-to-Date (YTD): The price return is approximately 14.64%, while the total return is approximately 17.32%.
• One Year: The price return was approximately 18.71%, and the total return was approximately 22.50%.
• Three Years: The price return was approximately 31.51%, and the total return was approximately 42.30%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $28.40. The current price is $33.72.
Top Holdings
This ETF holds 119 different companies. The following are the top holdings from the partial list provided:
• SAP SE (10.36%)
• ABB LTD (9.75%)
• UNION PACIFIC CORP (8.61%)
• CSX CORP (4.56%)
• CANADIAN PACIFIC KANSAS CITY LTD (4.09%)
• DHL AG (4.08%)
• CANADIAN NATIONAL RAILWAY CO (3.83%)
• UNITED PARCEL SERVICE INC CLASS B (3.80%)
• NORFOLK SOUTHERN CORP (3.73%)
• FEDEX CORP (3.69%)
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 3.09%. It usually pays these out quarterly, with four payments made over the last 12 months. While distributions provide cash income, they are not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an "erosion-risk score" to measure this risk. For SHPP, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The ETF has shown positive price returns and total returns over the one-year and three-year periods.
• The erosion-risk measurement is rated as "good."
Cons
• As with all ETFs, the value of your investment can change based on market movements.
• The list of holdings provided is only a partial list of the 119 total companies held.
Beginner takeaway
When studying SHPP, it is helpful to distinguish between the share price movement and the total return. Because this ETF pays distributions, the total return is higher than the price return alone. Always remember that a distribution yield tells you about cash payments, but it does not guarantee how the share price will behave.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SAP SE | n/a | 10.36% |
| 2 | ABB LTD | n/a | 9.75% |
| 3 | UNION PACIFIC CORP | UNP | 8.61% |
| 4 | CSX CORP | CSX | 4.56% |
| 5 | CANADIAN PACIFIC KANSAS CITY LTD | n/a | 4.09% |
| 6 | DHL AG | n/a | 4.08% |
| 7 | CANADIAN NATIONAL RAILWAY CO | n/a | 3.83% |
| 8 | UNITED PARCEL SERVICE INC CLASS B | UPS | 3.80% |
| 9 | NORFOLK SOUTHERN CORP | NSC | 3.73% |
| 10 | FEDEX CORP | FDX | 3.69% |