Understanding the AXS Short China Internet ETF (SWEB)

What this ETF is trying to do

The AXS Short China Internet ETF, trading under the ticker SWEB on the NASDAQ, is an exchange-traded fund (ETF). While the specific investment strategy details are not provided in this report, ETFs are tools used by investors to gain exposure to specific parts of the market.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how much the share price changed. Total return includes both price changes and any cash distributions paid out.

As of June 22, 2023, the current price is $19.98. Looking back at the past year:

• One-year price return: The share price decreased by approximately 13.28%.

• One-year total return: The overall return was approximately -7.58%.

Because the total return is a different number than the price return, we can see that distributions played a role in the overall performance. We can also look at an estimated price from roughly one year ago, which was approximately $23.04.

For example, if someone had invested $10,000 in this ETF one year ago based on the estimated starting price, the share price alone would have dropped to about $8,672 before accounting for any cash payments.

Year-to-date (YTD) figures show a different trend:

• YTD price return: The share price has increased by approximately 5.01%.

• YTD total return: The overall return has increased by approximately 3.34%.

Income and distribution explanation

This ETF has a distribution yield of approximately 6.36%. This number describes the cash distributions relative to the ETF's price. Over the last 12 months, there were 2 distributions. The frequency of these payments is described as irregular or less frequent.

It is important to remember that a high distribution yield does not mean an investor earned that percentage as their total return. Distributions provide cash income, but they do not guarantee that your original investment (your principal) will stay the same.

NAV erosion explanation

"NAV" stands for Net Asset Value, which is essentially the value of the assets held by the fund. "NAV erosion" is a term used when the value of those underlying assets declines.

This ETF has an erosion-risk score of 75, which is labeled as "mild price erosion." This is an erosion-risk measurement, not a confirmed fact that the NAV has collapsed. A falling market price is a share-price decline, which is different from proven NAV erosion.

Pros

• The ETF has shown a positive year-to-date total return of approximately 3.34%.

• It provides a distribution yield of approximately 6.36%.

Cons

• The one-year total return has been negative at approximately -7.58%.

• There is a measurement of mild price erosion.

Beginner takeaway

When looking at ETFs, especially those with high yields, it is important to look at both the price return and the total return. A high distribution yield can be helpful for cash income, but if the share price is falling significantly, it can impact the total value of your investment. Always check if the total return is positive or negative to get the full picture.