Understanding the STRATIFIED LARGECAP HEDGED ETF (SHUS)

What this ETF is trying to do

The STRATIFIED LARGECAP HEDGED ETF (ticker: SHUS) is an exchange-traded fund listed on the NYSE. Based on its top holdings, this ETF primarily invests in the STRATIFIED LARGECAP INDEX ETF (SSPY), which makes up 99.65% of the fund.

What the numbers show

When looking at how an ETF performs, 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 SHUS, the year-to-date (YTD) price return is approximately 10.59%. The one-year price return is approximately 10.92%.

• Total Return: This includes the share price change plus any distributions (cash payments) made to investors. The YTD total return is approximately 10.59%. The one-year total return is higher, at approximately 12.43%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $45.84, and the current price is $50.84.

Income and distribution explanation

Some investors look for "yield," which is the cash an ETF pays out. The distribution yield for SHUS is approximately 1.24%. Over the last 12 months, there was one distribution of approximately $0.63 per share. The frequency of these payments is described as irregular or less frequent. It is important to remember that a distribution yield is 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 SHUS, the erosion score is 100, and the label indicates "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The ETF has shown positive price returns both year-to-date and over the last year.

• The one-year total return (12.43%) is higher than the one-year price return (10.92%), showing that distributions added value to the total return.

• The erosion-risk measurements suggest no current price erosion issues.

Cons

• The distribution frequency is irregular, meaning investors cannot rely on regular, predictable cash payments.

• The income rating grade is a "C."

Beginner takeaway

When studying SHUS, notice the difference between price return and total return. While the share price went up by about 10.92% over the last year, the total return was higher at 12.43% because of the cash distributions. Always remember that while distributions provide cash, they are separate from the growth of the share price itself.