ETF Report: Cabana Target Drawdown 13 ETF (TDSD)

What this ETF is trying to do

The Cabana Target Drawdown 13 ETF (TDSD) is an exchange-traded fund listed on the NASDAQ. While the specific investment strategy is not detailed in the provided data, ETFs like this are generally designed to follow a specific goal or target set by their managers.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how much the share price changed. Total return includes those price changes plus any distributions (cash payments) received.

• One-Year Performance: The one-year price return was approximately 6.00%. However, the one-year total return was higher at approximately 8.32%. This shows that the total return is a more complete picture of what happened when including distributions.

• Year-to-Date (YTD): For the current year so far, both the price return and the total return are approximately -2.39%.

• Three-Year Performance: Over the last three years, the price return was approximately -8.88%, while the total return was approximately -4.78%.

To visualize the price change over the last year: The current price is $22.43. Based on the one-year return, the estimated price from roughly one year ago was approximately $21.16. If you had invested $10,000 into the share price alone one year ago, your investment would have grown to about $10,600 before accounting for any cash distributions.

Income and distribution explanation

This ETF provides cash distributions. The distribution yield is approximately 2.17%. This number describes the cash payments relative to the current ETF price. Over the last 12 months, there were 3 payouts, and the frequency is described as irregular or less frequent. It is important to remember that receiving regular cash does not guarantee that your original investment (your principal) will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. The StockValueFinder erosion-risk score for this ETF is 75, which is labeled as "Mild price erosion." This is an erosion-risk measurement, not proof that the Net Asset Value (NAV) has definitely collapsed. A falling market price does not always mean the NAV has declined, but a mild erosion score suggests some price deterioration has been measured.

Pros

• The one-year total return was positive at approximately 8.32%.

• The ETF provides periodic cash distributions.

Cons

• The three-year total return has been negative (approximately -4.78%).

• The year-to-date performance shows a decline in both price and total return.

Beginner takeaway

When looking at ETFs, always distinguish between the share price and the total return. A high distribution yield can look attractive, but if the share price is falling, it can offset the income you receive. Investors often look for stability; if an ETF's price drops significantly, it can be harder to recover your original investment even if you are receiving cash payments.