TFNS: T. ROWE PRICE FINANCIALS ETF
ETF Education Report: T. ROWE PRICE FINANCIALS ETF (TFNS)
What this ETF is trying to do
The T. Rowe Price Financials ETF (TFNS) is an exchange-traded fund that focuses on the financial sector. It holds a variety of companies involved in banking, payments, and insurance. Based on the top holdings provided, the fund includes large companies like Berkshire Hathaway Inc Class B, Visa Inc Class A, and Mastercard Inc Class A. Because the holdings list is partial, these are just some of the companies in the fund, not all of them. Please remember that 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 the change in the share price. For TFNS, the one-year price return was approximately 4.85%. The year-to-date (YTD) price return was approximately 0.99%.
• Total Return: This includes the share price change plus any distributions (cash payments) made to investors. The one-year total return for this ETF was approximately 5.36%. The YTD total return was approximately 0.99%.
To see how the price has moved, we can look at the current price of $27.76 and compare it to an estimated price from roughly one year ago, which was approximately $26.47.
Income and distribution explanation
Some investors look for "yield," which is the cash an ETF pays out. The distribution yield for TFNS is approximately 0.49%. This represents the cash distributions relative to the ETF's price. It is important to note that a distribution yield is not the same as total return. Also, this ETF has an irregular or less frequent distribution schedule, with one payout recorded in 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). While a falling share price can sometimes be related to erosion, they are not the same thing. StockValueFinder uses an erosion-risk score to measure this risk. TFNS has an erosion score of 94, which is labeled as "Stable / sideways," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.
Pros
• The fund shows a positive one-year total return of approximately 5.36%.
• The erosion-risk score suggests the fund's value has been relatively stable.
Cons
• The distribution yield is relatively low (approximately 0.49%).
• The distribution frequency is irregular, meaning you may not receive cash payments on a regular schedule.
Beginner takeaway
When studying TFNS, remember that the share price and the total return are different numbers. The total return gives a fuller picture because it includes the cash distributions. While this fund has shown price growth over the last year, always remember that past performance does not guarantee what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | BERKSHIRE HATHAWAY INC CLASS B | BRK-B | 11.12% |
| 2 | VISA INC CLASS A | V | 7.02% |
| 3 | MASTERCARD INC CLASS A | MA | 6.23% |
| 4 | JPMORGAN CHASE & CO | JPM | 4.98% |
| 5 | WELLS FARGO & CO | WFC | 4.58% |
| 6 | BANK OF AMERICA CORP | BAC | 4.33% |
| 7 | THE GOLDMAN SACHS GROUP INC | GS | 3.64% |
| 8 | CHARLES SCHWAB CORP | SCHW | 3.54% |
| 9 | CITIGROUP INC | C | 3.45% |
| 10 | MORGAN STANLEY | MS | 2.66% |