ETF Education Report: TORTOISE AI INFRASTRUCTURE ETF (TCAI)

What this ETF is trying to do

The TORTOISE AI INFRASTRUCTURE ETF (TCAI) is an exchange-traded fund that focuses on companies involved in artificial intelligence infrastructure. This means the fund holds many different companies rather than just one. Based on its top holdings, it includes businesses like Dell Technologies, Vertiv Holdings, and Micron Technology. Please note that the list of holdings provided is partial, meaning it only shows some of the companies in the fund. Holdings can change over time.

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 moved up or down. For TCAI, the year-to-date (YTD) price return is approximately 61.27%. The one-year price return is approximately 55.29%.

• Total Return: This includes the price change plus any cash distributions paid out to investors. The one-year total return for this ETF is approximately 55.37%.

To give you an idea of price movement, the current price is $47.88. The estimated price from roughly one year ago was approximately $30.83.

Income and distribution explanation

Some investors look for "distributions," which are cash payments made by the ETF. The distribution yield for TCAI is 0.032%. This number describes the cash distributions relative to the ETF's price. It is important to remember that a distribution yield is not the same as total return. Also, distributions are paid out irregularly, with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly. Investors often care about this because they want to keep their original investment amount stable while collecting income. For TCAI, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The fund has shown significant positive price returns both year-to-date and over the last year.

• The erosion-risk measurement is rated as "good."

Cons

• Distributions are described as irregular or less frequent.

• The fund's performance is based on a specific sector (AI infrastructure), which may behave differently than the broader market.

Beginner takeaway

When studying an ETF like TCAI, always distinguish between the share price moving up and the total return including cash payments. While this fund has seen strong price growth recently, always remember that high yields or price changes in the past do not guarantee what will happen in the future.

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*Disclaimer: This report is for educational purposes only. It does not provide financial advice and does not recommend buying, selling, or holding any security.*