ETF Education Report: LAFFER|TENGLER EQUITY INCOME ETF (TGLR)

What this ETF is trying to do

The LAFFER|TENGLER EQUITY INCOME ETF (TGLR) is an exchange-traded fund listed on the NYSE. Based on its name and holdings, it focuses on equity income. This means it holds shares in various companies to participate in their growth and collect income.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return (how much the share price changed) and total return (the share price change plus any cash distributions received).

Here is how TGLR has performed:

• Year-to-Date (YTD): The price return is approximately 9.73%, while the total return is approximately 10.18%.

• One Year: The price return is approximately 11.56%, while the total return is approximately 12.63%.

• Three Years: The price return is approximately 70.90%, while the total return is approximately 76.73%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $35.54, and the current price is $39.65.

Top Holdings

The following are the top holdings in this ETF. Please note that this list is partial and does not include all 32 companies held by the fund. Holdings can change over time.

• Lam Research Corp (6.68%)

• Broadcom Inc (4.80%)

• The Goldman Sachs Group Inc (4.75%)

• Walmart Inc (4.61%)

• RTX Corp (4.56%)

• JPMorgan Chase & Co (4.54%)

• American Express Co (4.32%)

• Alphabet Inc Class A (3.87%)

• Microsoft Corp (3.81%)

• L3Harris Technologies Inc (3.44%)

Income and distribution explanation

This ETF provides cash distributions to investors. The current distribution yield is approximately 0.90%. This number describes the cash paid out relative to the ETF's price. Over the last 12 months, there were 8 payouts. These distributions usually happen on a quarterly basis, though recent data shows many occurring on Wednesdays.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry about this because if a fund's value drops too much, it can be hard to recover. For TGLR, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

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

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

Cons

• The distribution yield (0.90%) is relatively low compared to some other income-focused investments.

Beginner takeaway

TGLR is an ETF that has seen its share price and total value grow over the last three years. It provides small cash distributions to investors. Because there is no severe erosion-risk flag, the data suggests the price has not shown signs of significant deterioration. Always remember that a distribution yield is not the same as total return.