ETF Education Report: STATE STREET(R) DOUBLELINE(R) TOTAL RETURN TACTICAL ETF (TOTL)

What this ETF is trying to do

The STATE STREET(R) DOUBLELINE(R) TOTAL RETURN TACTICAL ETF, trading under the ticker TOTL, is an exchange-traded fund (ETF) listed on the NYSE. While the specific investment strategy is not detailed in the provided data, ETFs like this are generally designed to provide investors with exposure to specific markets or asset types.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and any cash distributions (dividends) paid out.

For TOTL, the numbers show different trends depending on the time frame:

• Year-to-Date (YTD): The price return is approximately -5.69%, while the total return is approximately -2.47%.

• One Year: The price return was approximately -6.48%, while the total return was approximately -1.48%.

• Three Years: The price return was approximately -3.31%, but the total return was a positive 13.09%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was $40.59. The current price is $37.96.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 5.47%. This means the amount of cash paid out is about 5.47% relative to the current ETF price. These distributions usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. Total return is the most complete way to see how the investment performed overall.

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 market price can sometimes look like erosion, they are not always the same thing.

StockValueFinder uses an "erosion-risk score" to measure this risk. TOTL has an erosion score of 75, which is labeled as "Mild price erosion." This is a measurement of risk rather than a confirmed collapse of the fund's value. There is no severe erosion-risk flag for this ETF.

Pros

• The ETF has a positive three-year total return of approximately 13.09%.

• It provides regular monthly income with a distribution yield of approximately 5.47%.

Cons

• The one-year and year-to-date price returns have been negative.

• The fund shows a "mild" erosion-risk score.

Beginner takeaway

When evaluating an ETF like TOTL, don't look at the yield alone. High yields can sometimes exist even when the share price is falling. Always compare the price return (the change in share cost) with the total return (the change in value including cash paid out) to get a clearer picture of performance.