TBLU: TORTOISE GLOBAL WATER ETF
Understanding the Tortoise Global Water ETF (TBLU)
What this ETF is trying to do
The Tortoise Global Water ETF, known by its ticker symbol TBLU, is an exchange-traded fund that focuses on the water industry. It holds a variety of companies involved in different parts of the water sector. Based on its top holdings, it includes companies like Ecolab Inc, Ferguson Enterprises Inc, and Veralto Corp. Because the list provided is partial, these are simply the largest companies in its portfolio, not all of them.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only how much the share price has changed.
• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.
For TBLU, the numbers show different trends depending on the time frame:
• Year-to-Date (YTD): The price return is approximately -3.02%, while the total return is approximately -2.07%.
• One Year: The price return was approximately -7.70%, and the total return was approximately -4.46%.
• Three Years: The performance looks much stronger over a longer period, with a price return of approximately 24.91% and a total return of approximately 32.86%.
An estimated price from roughly one year ago was $53.38, compared to the current price of $49.27.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. TBLU has a distribution yield of approximately 3.61%. This means the cash paid out is about 3.61% of the ETF's price. The trailing distributions were $1.779. It is important to remember that a distribution yield is not the same as total return, and receiving cash does not guarantee your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases. While a falling share price is not the same thing as NAV erosion, we use an "erosion-risk score" to measure this risk. TBLU has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk, not a confirmed fact that the fund's value has collapsed. There is no severe erosion-risk flag for this ETF.
Pros
• The ETF has shown strong total returns over a three-year period (approximately 32.86%).
• It provides a distribution yield of approximately 3.61%.
Cons
• The share price and total return have been negative over the last year.
• There is a "mild" erosion-risk score of 75.
Beginner takeaway
When looking at TBLU, remember that short-term price changes can be different from long-term trends. Always distinguish between the share price (price return) and the total amount earned including distributions (total return). High yields can be helpful for income, but they do not protect you from a declining share price.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ECOLAB INC | ECL | 7.73% |
| 2 | VERALTO CORP | VLTO | 7.63% |
| 3 | FERGUSON ENTERPRISES INC | FERG | 7.50% |
| 4 | XYLEM INC | XYL | 7.28% |
| 5 | VEOLIA ENVIRONNEMENT SA | n/a | 7.20% |
| 6 | AMERICAN WATER WORKS CO INC | AWK | 6.84% |
| 7 | n/a | SBS | 4.95% |
| 8 | IDEX CORP | IEX | 4.20% |
| 9 | UNITED UTILITIES GROUP PLC CLASS A | n/a | 4.19% |
| 10 | SEVERN TRENT PLC | n/a | 3.95% |