UFOX: Defiance Connective Technologies ETF
ETF Education Report: Defiance Connective Technologies ETF (UFOX)
What this ETF is trying to do
The Defiance Connective Technologies ETF (UFOX) is an exchange-traded fund that focuses on specific companies. Based on its top holdings, it includes businesses involved in technology and connectivity. Some of the largest companies in this fund include Maxlinear Inc, Rocket Lab Corp, Apple Inc, Broadcom Inc, and NVIDIA Corp. Please note that this list is a partial look at the fund's holdings, which can change over time.
What the numbers show
When looking at how an ETF performs, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For UFOX, the one-year price return was approximately 41.10%. The year-to-date (YTD) price return was approximately 41.22%.
• Total Return: This includes the share price change plus any distributions (cash payments) made to investors. The one-year total return was approximately 41.79%, and the YTD total return was approximately 41.69%.
Looking further back, the three-year price return was approximately 189.41%, while the three-year total return was approximately 195.84%. To give you an idea of price movement, the current price is $90.15, while the estimated price from roughly one year ago was approximately $63.89.
Income and distribution explanation
Some investors look for ETFs that pay out cash. This is called a distribution yield. The distribution yield for UFOX is approximately 0.41%. This represents the cash distributions relative to the ETF's price. The fund usually pays these out quarterly, and it has made 4 payments over the last 12 months. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an erosion-risk score to help measure this risk. For UFOX, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The fund has shown significant positive price returns over the one-year and three-year periods.
• The erosion-risk measurement is rated as "good."
Cons
• The distribution yield (the cash paid out) is relatively low at approximately 0.41%.
Beginner takeaway
UFOX has experienced strong growth in its share price over the last year and three years. While it does pay distributions, the majority of the fund's performance has come from the increase in its share price (price return) rather than cash payments. Always remember that past performance does not guarantee what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MAXLINEAR INC | MXL | 5.86% |
| 2 | n/a | SPCX | 4.98% |
| 3 | ROCKET LAB CORP | RKLB | 4.95% |
| 4 | APPLE INC | AAPL | 4.02% |
| 5 | BROADCOM INC | AVGO | 3.85% |
| 6 | NVIDIA CORP | NVDA | 3.78% |
| 7 | MARVELL TECHNOLOGY INC | MRVL | 3.58% |
| 8 | n/a | ASTS | 3.48% |
| 9 | CISCO SYSTEMS INC | CSCO | 3.44% |
| 10 | ARM HOLDINGS PLC ADR | ARM | 2.71% |