What this ETF is trying to do

TDF, known as the Templeton Dragon Fund Inc, is an ETF that trades on the NYSE. The provided data does not list specific details about the fund's investment goals or what it owns.

What the numbers show

The current price of one share is $10.12. An estimated price from roughly one year ago was about $11.47. This indicates a share-price decline over the last year.

To understand this, we can look at the "one-year price return," which measures only the change in the share price. That return was approximately -11.77%. For example, if you had invested $10,000 into the share price alone one year ago, it would be worth about $8,823 today.

However, "total return" is different because it includes cash payments made to investors. The one-year total return was approximately -8.86%. Looking at other timeframes:

• Year-to-date (YTD): The price return is about -10.12%, while the total return is about -7.99%.

• Three-year: The price return was 16.59%, and the total return was 25.70%.

• Five-year: The total return was -34.50%.

Income and distribution explanation

This ETF has a distribution yield of approximately 4.45%. This number describes the cash distributions paid out relative to the ETF's price. These payments are usually made quarterly, and there were four payments in the last 12 months.

It is important for new investors to know that a distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your overall investment value will grow.

NAV erosion explanation

The fund has an erosion-risk score of 75, which is described as "mild price erosion." NAV erosion refers to a decline in the actual value of the assets held within the fund. While this ETF shows a mild risk of price erosion, it does not have a "severe erosion-risk flag."

Pros

• The three-year total return has been positive at 25.70%.

• The ETF provides a distribution yield of approximately 4.45%.

Cons

• The one-year and year-to-date returns have both been negative.

• The five-year total return is significantly negative at -34.50%.

• There is a measurement of mild price erosion.

Beginner takeaway

When looking at an ETF, it is helpful to distinguish between the share price and the total return. The share price tells you how much the cost of one unit has changed, while the total return includes any cash distributions you received. Even if an ETF pays out regular cash (yield), the overall value of your investment can still go down if the share price declines significantly.