ETF Education Report: PROSHARES SMART MATERIALS ETF (TINT)

What this ETF is trying to do

The PROSHARES SMART MATERIALS ETF (TINT) is an exchange-traded fund that focuses on "smart materials." While the specific strategy isn't detailed, the fund holds a variety of companies involved in different material industries. This list of Top Holdings is partial, meaning it only shows some of the companies in the fund:

• ZEON CORP (6.71%)

• SYENSQO SA (6.63%)

• SIKA AG (5.75%)

• AKZO NOBEL NV (5.21%)

• CABOT CORP (4.97%)

• HEXCEL CORP (4.93%)

• NVIDIA CORP (4.91%)

• RPM INTERNATIONAL INC (4.62%)

• PPG INDUSTRIES INC (4.61%)

• SOLVAY SA (4.47%)

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 (how much the share price changed) and total return (which includes both price changes and any cash distributions paid out).

Here is how TINT has performed:

• Year-to-Date (YTD): The price return is approximately 14.23%, while the total return is approximately 15.35%.

• One Year: The price return was approximately 15.58%, and the total return was approximately 16.98%.

• Three Years: The price return was approximately 25.04%, and the total return was approximately 30.09%.

To give you an idea of price movement, the estimated price from roughly one year ago was $32.96. The current price is $38.10.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. TINT has a distribution yield of approximately 1.19%. This means the fund paid out about $0.45 per share over the last year. These payments usually happen quarterly, and in the last 12 months, there were 4 payouts.

It is important to remember that a distribution yield is not the same as total return. A high yield does not guarantee you will make money, and distributions are separate from the changes in the share price.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly. Some investors worry about this because they want to make sure their original investment stays stable.

For TINT, 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 is relatively low at approximately 1.19%.

Beginner takeaway

When studying TINT, notice the difference between price return and total return. The total return is higher in every category because it accounts for the cash distributions paid to investors. Also, while the fund pays a small amount of income, its main performance comes from the change in its share price.