Share-split context: A forward split was recorded on Sep 23, 2019 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

Understanding the State Street(R) SPDR(R) Portfolio Intermediate Term Treasury ETF (SPTI)

What this ETF is trying to do

The SPTI ETF is an exchange-traded fund that focuses on intermediate-term U.S. Treasury securities. These are essentially loans made to the government.

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 only tracks how much the share price has changed.

• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.

For SPTI, the numbers show:

• Year-to-Date (YTD): The price return is approximately -5.48%, while the total return is approximately -2.69%.

• One Year: The price return is approximately -5.54%, while the total return is approximately -1.83%.

• Three Year: The price return is 0%, but the total return is approximately 11.99%.

Because this ETF has a history of forward splits, we use split-adjusted returns. A forward split means one old share became multiple new shares. This changes the price per share, but it does not change the total value of your investment at the moment it happens.

Income and distribution explanation

Some investors look for ETFs that pay regular cash. SPTI has a distribution yield of approximately 4.03%. This means the cash paid out is about 4.03% of the current share price. These distributions usually happen monthly, with the most common payout day being Monday.

It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

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

SPTI has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk and does not necessarily mean the fund's value has collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The ETF provides regular monthly cash distributions.

• The three-year total return is positive at approximately 11.99%.

Cons

• The one-year and year-to-date price returns have been negative.

• The fund shows a "mild" erosion-risk score.

Beginner takeaway

When studying SPTI, remember that the share price and the total return are different. While the share price has declined recently, the total return is higher because it includes the cash distributions paid to investors. Always look at both numbers to get a full picture of how an ETF is performing.