Understanding the ETC CABANA TARGET DRAWDOWN 10 ETF (TDSC)

The ETC CABANA TARGET DRAWDOWN 10 ETF (ticker: TDSC) is an exchange-traded fund listed on the NASDAQ. This ETF is designed with a specific strategy regarding market movement, and it currently provides a distribution yield of approximately 1.30%.

What this ETF is trying to do

TDSC is an ETF that holds a variety of different assets. Based on its top holdings, the fund includes exposure to technology, healthcare, energy, and utilities, as well as gold and treasury bonds. By holding these different types of investments, the fund aims to follow its specific drawdown target strategy.

What the numbers show

When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes both price changes and distributions).

• Year-to-Date (YTD): The price return is approximately 13.36%, while the total return is approximately 14.37%.

• One-Year: The price return was approximately 15.08%, and the total return was approximately 16.71%.

• Three-Year: The price return was approximately 31.53%, while the total return was approximately 41.26%.

• Five-Year: The five-year total return is approximately 18.82%.

An estimated price from roughly one year ago was $24.90, compared to the current price of $28.65.

Income and distribution explanation

TDSC provides cash distributions to investors. The current distribution yield is approximately 1.30%. This means the amount of cash paid out is about 1.30% relative to the current share price. The fund usually pays these distributions on a quarterly basis, having made 4 payments over the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• Positive Returns: The fund has shown positive price returns and total returns over one-year and three-year periods.

• Diversified Holdings: The fund holds a mix of sectors, including tech (XLK), healthcare (XLV), and gold (AAAU).

• Income Rating: The fund has an income rating grade of "A" with a score of 83.

Cons

• Lower Yield: The distribution yield of 1.30% may be considered low for investors specifically seeking high levels of immediate cash income.

Beginner takeaway

TDSC is an ETF that has shown growth in both its share price and its total return over the last few years. While it pays a quarterly distribution, the yield is relatively modest at 1.30%. Based on the available data, the fund does not show signs of price erosion. Always remember that past performance does not guarantee what will happen in the future.