Understanding the Tortoise North American Pipeline ETF (TPYP)

What this ETF is trying to do

The Tortoise North American Pipeline ETF (TPYP) is an exchange-traded fund that focuses on the pipeline industry in North America. It holds a variety of companies involved in moving energy. This list of Top Holdings is partial, meaning it only shows the largest companies in the fund:

• Cheniere Energy Inc: 8.26%

• Targa Resources Corp: 7.33%

• Williams Companies Inc: 7.33%

• Kinder Morgan Inc Class P: 7.21%

• Oneok Inc: 6.87%

• TC Energy Corp: 6.70%

• Enbridge Inc: 6.57%

• Energy Transfer LP: 4.39%

• Enterprise Products Partners LP: 4.02%

• Atmos Energy Corp: 3.93%

What the numbers show

When looking at an ETF, it is important to know the difference between price return and total return. Price return only tracks how much the share price changed. Total return includes both the price change and any cash distributions (dividends) paid out.

• Year-to-Date (YTD): The price return is approximately 17.39%, while the total return is approximately 20.28%.

• One Year: The price return was approximately 14.54%, and the total return was approximately 18.48%.

• Three Year: The price return was approximately 71.91%, and the total return was approximately 93.55%.

To give you an idea of price movement, the current price is $41.43. The estimated price from roughly one year ago was approximately $36.17.

Income and distribution explanation

This ETF pays out cash to investors, which is called a distribution. The distribution yield is approximately 3.30%. This means the cash paid out is about 3.30% of the ETF's price. These payments usually happen quarterly, and there were 4 payouts in the last 12 months.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. Some investors worry that high payouts might cause this. However, for TPYP, 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

• Strong Total Returns: The total return over three years (93.55%) is higher than the price return alone.

• Income Generation: The fund has an income rating grade of "A."

Cons

• Partial Data: The list of holdings provided is only a partial list of the 46 total companies held in the fund.

Beginner takeaway

When studying TPYP, remember that price returns and total returns are different. While the share price goes up or down, the total return shows you a fuller picture by including the cash distributions paid to you. Always look at both when evaluating how an ETF has performed.