What this ETF is trying to do

The Hennessy Sustainable ETF (STNC) is an exchange-traded fund listed on the NASDAQ. While the specific investment strategy details are not provided, the fund holds a variety of different companies across various industries. Based on its top holdings, it includes companies like HP Inc, Charter Communications, and McKesson Corp.

What the numbers show

The data shows that STNC has experienced growth in its share price over several timeframes.

• Year-to-Date (YTD): The price return is approximately 8.92%.

• One Year: The share-price change (price return) was approximately 10.72%. When including distributions, the one-year total return was approximately 11.85%.

• Three Year: The share-price change (price return) was approximately 42.22%. Including distributions, the three-year total return was approximately 45.13%.

• Five Year: The five-year total return was approximately 40.15%.

To give you an idea of price movement, the estimated price from roughly one year ago was $32.60, compared to the current price of $36.09.

Income and distribution explanation

This ETF provides cash distributions to investors. The current distribution yield is approximately 0.93%. It is important to remember that the distribution yield is a measure of cash paid out relative to the price; it is not the same as the total return.

The fund has an income rating grade of "A" with a score of 83. The distributions are described as "irregular or less frequent," with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding the market price of the shares, the fund has an erosion-risk score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• Positive Returns: The fund has shown positive price returns and total returns over one-year, three-year, and five-year periods.

• Strong Income Rating: The fund holds an "A" grade for its income rating score.

• No Price Erosion Detected: Based on the provided erosion-risk measurements, there are no signs of significant price deterioration.

Cons

• Irregular Payouts: The distribution frequency is listed as irregular or less frequent, meaning investors should not expect a steady, predictable schedule of cash payments.

• Partial Holdings List: The provided list of top holdings is only a partial view of the total 49 companies held by the fund.

Beginner takeaway

STNC has shown growth in both its share price and its total return over the last few years. While it provides some cash distributions, they do not happen on a regular or frequent schedule. Investors should distinguish between the "price return" (how much the share price moved) and the "total return" (which includes those cash distributions). Currently, the fund shows no signs of price erosion according to the supplied risk scores.