Share-split context: A reverse split was recorded on May 1, 2020 with coefficient 0.25. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: Tortoise Energy Infrastructure Corp (TYG)

What this ETF is trying to do

Tortoise Energy Infrastructure Corp (TYG) is an Exchange Traded Fund (ETF) traded on the NYSE. While the specific holdings are not listed in the current data, this type of fund generally focuses on energy infrastructure.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how the share price moves. Total return includes both the share price movement and the cash distributions paid out to investors.

• Year-to-Date (YTD): The price return is approximately -5.84%. However, the total return is positive at about 3.42%.

• One Year: The price return was approximately -11.41%, while the total return was about 0.36%.

• Three Year: The price return was approximately 39.63%, and the total return was much higher at about 92.06%.

This ETF has a history of reverse splits. In a reverse split, multiple old shares are combined into fewer new shares. This causes the price per share to rise mechanically, but it does not increase the actual value of your investment.

Income and distribution explanation

This ETF is known for its distributions. The current distribution yield is approximately 14.52%. This means the fund pays out a large amount of cash relative to its share price. These payments usually happen monthly, with Friday being the most common day for distributions. Over the last 12 months, there were 12 payments totaling $5.59 per share.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. While a falling share price does not always mean NAV is dropping, investors often watch for this. This ETF has an erosion-risk score of 75, which is labeled as "mild price erosion." This is a measurement of risk, not a guarantee that the fund's value has collapsed.

Pros

• The fund offers a high distribution yield of approximately 14.52%.

• The three-year total return has been strong at approximately 92.06%.

Cons

• The share price has seen declines, such as the -11.41% one-year price return.

• There is a "mild" erosion-risk score of 75.

• The fund has a history of reverse splits.

Beginner takeaway

When looking at an ETF like TYG, remember that a high distribution yield can be misleading. A fund might pay out a lot of cash, but if the share price is falling, the total return might be much lower. Always look at both the price return and the total return to see the full picture of how the investment has performed.