Share-split context: A forward split was recorded on Oct 16, 2017 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.

What this ETF is trying to do

The State Street(R) SPDR(R) Portfolio Long Term Treasury ETF (ticker: SPTL) is an exchange-traded fund. Based on its name, it focuses on long-term U.S. Treasury securities. This type of ETF is designed to give investors exposure to government debt that matures over a long period of time.

What the numbers show

When looking at this 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 changes and any cash distributions (dividends) paid out to investors.

For SPTL, the numbers show different results depending on how long you look:

• Year-to-Date (YTD): The price return is approximately -10.62%, while the total return is approximately -7.72%.

• One Year: The price return is approximately -12.04%, while the total return is approximately -8.26%.

• Three Years: The price return is approximately -5.74%, while the total return is a positive 6.30%.

• Five Years: The five-year total return is approximately -31.27%.

Because this ETF has a history of forward splits, the price data is "split-adjusted." This means the historical prices have been adjusted so that a split (where one old share becomes multiple new shares) does not look like a sudden drop in value.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 4.63%. This number describes the cash paid out relative to the current share price of $23.66.

The distributions are usually paid out monthly, with the most recent trailing distributions totaling $1.095 per share. While these payments provide cash income, it is important to remember that a high yield does not guarantee that the overall value of your investment will go up.

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.

For SPTL, the erosion score is 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

• Regular Income: The ETF has a distribution yield of approximately 4.63% and pays out frequently (usually monthly).

• Positive Three-Year Total Return: While the share price has declined over three years, the total return (which includes distributions) was positive at 6.30%.

Cons

• Price Declines: The share price has seen negative returns over the last year and year-to-date.

• Long-term Total Return: The five-year total return has been negative at approximately -31.27%.

Beginner takeaway

When looking at SPTL, it is helpful to distinguish between the share price and the total return. While the share price has been falling recently, the distributions help offset some of those losses in the total return calculation. Always remember that a high distribution yield is not the same as a total profit, and price changes can impact your overall investment value.