SWP: SWP GROWTH & INCOME ETF
What this ETF is trying to do
The SWP Growth & Income ETF (SWP) is an exchange-traded fund listed on the NASDAQ. Based on its name and holdings, it aims to provide a mix of growth and income. Its portfolio includes many well-known companies. According to the most recent data, its top holdings include:
• Microsoft Corp (5.36%)
• Apple Inc (4.71%)
• NVIDIA Corp (4.08%)
• International Business Machines Corp (3.86%)
• Meta Platforms Inc Class A (3.68%)
• Broadcom Inc (3.61%)
• Alphabet Inc Class A (3.56%)
Please note that this is a partial list of the 75 total holdings, and holdings can change over time.
What the numbers show
When looking at an ETF, it is important to understand the difference between "price return" and "total return."
Price Return only measures how much the share price has moved. Total Return includes both the share price movement and the cash distributions (dividends) paid out to investors.
For SWP, the numbers show:
• Year-to-Date (YTD): The price return is -0.86%, but the total return is 6.00%.
• One-Year: The price return is -0.38%, but the total return is 9.57%.
To put this in perspective, an estimated price from roughly one year ago was $27.64. The current price is $27.54. While the share price has seen a slight decline, the total return is positive because of the distributions.
Income and distribution explanation
This ETF has a distribution yield of approximately 9.52%. This means the cash distributions are quite high relative to the ETF's price. The trailing distributions were $2.62 per share. These payments usually happen quarterly, and there were 4 payouts in the last 12 months.
It is important to remember that a high distribution yield does not mean an investor earned that same percentage as total return. You must look at the "total return" figure to see the full picture of how the investment performed including those cash payments.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price can sometimes look like erosion, they are not always the same thing.
StockValueFinder uses an "erosion-risk score" to measure this risk. SWP has an erosion score of 94, which is labeled as "Stable / sideways" with a "good" severity rating. There is no severe erosion-risk flag for this ETF.
Pros
• Positive Total Returns: Even though the share price has dipped slightly, the total return (which includes distributions) has been positive over the last year.
• High Distribution Yield: The fund provides a significant amount of cash distributions.
Cons
• Price Deterioration: The share price has seen a small decline both year-to-date and over the last year.
• Yield vs. Price: High yields can sometimes exist even when the share price is falling.
Beginner takeaway
For new investors, SWP shows why it is vital to distinguish between price and total return. While the share price itself has stayed mostly flat or declined slightly, the cash distributions have helped create a positive total return for the period. Always look at the total return to understand how much value an ETF has actually generated.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MICROSOFT CORP | MSFT | 5.36% |
| 2 | APPLE INC | AAPL | 4.71% |
| 3 | NVIDIA CORP | NVDA | 4.08% |
| 4 | INTERNATIONAL BUSINESS MACHINES CORP | IBM | 3.86% |
| 5 | META PLATFORMS INC CLASS A | META | 3.68% |
| 6 | BROADCOM INC | AVGO | 3.61% |
| 7 | ALPHABET INC CLASS A | GOOGL | 3.56% |
| 8 | PHILIP MORRIS INTERNATIONAL INC | PM | 2.98% |
| 9 | JPMORGAN CHASE & CO | JPM | 2.86% |
| 10 | PROLOGIS INC | PLD | 2.68% |