ETF Education Report: DEFIANCE S&P 500 INCOME TARGET ETF (SPYT)

What this ETF is trying to do

The DEFIANCE S&P 500 INCOME TARGET ETF (SPYT) is an exchange-traded fund listed on the NYSE. Based on its top holdings, it focuses heavily on the S&P 500 index.

What the numbers show

It is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price goes up or down. Total return includes both the price changes and the cash distributions paid out to investors.

For SPYT, the numbers show two different stories:

• One-Year Performance: The one-year price return was approximately -6.30%. However, the one-year total return was approximately 14.85%.

• Year-to-Date (YTD) Performance: The YTD price return is approximately -1.43%, while the YTD total return is approximately 12.63%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was about $18.40. The current price is $17.24. This shows that while the share price has declined, the total return remains positive due to distributions.

Income and distribution explanation

This ETF has a high distribution yield of approximately 20.74%. This means the fund pays out a large amount of cash relative to its share price. These distributions usually happen monthly, with Monday being the most common day for payouts. Over the last 12 months, the trailing distributions were approximately $3.58 per share.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. While a falling share price does not always mean the NAV is eroding, investors often watch this closely.

SPYT has an erosion-risk score of 75, which is labeled as "Mild price erosion." This is a measurement of risk, not a guarantee that the fund's value has collapsed. There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in this portfolio (as of October 4, 2026):

• ISHARES CORE S&P 500 ETF (IVV): 99.47%

• FIRST AMERICAN GOVERNMENT OBLIGS X (FGXXX): 0.19%

Pros

• The fund provides a high distribution yield.

• The total return has been positive over the last year, even though the share price fell.

Cons

• The share price has experienced a decline (negative price return).

• There is a measurement of "mild" price erosion.

Beginner takeaway

When looking at high-yield ETFs like SPYT, it is vital to look at both the price return and the total return. A high distribution yield can provide cash income, but it does not guarantee that the share price will stay stable. Always check if the total return (which includes distributions) is helping to offset a declining share price.