Understanding the UNHG ETF

What this ETF is trying to do

The LEVERAGE SHARES 2X LONG UNH DAILY ETF (UNHG) is a specialized fund. It is a leveraged ETF, which means it uses financial tools to try and multiply the daily movements of its target. This fund focuses on UnitedHealth Group Inc (UNH).

What the numbers show

The current price of UNHG is $18.14. When looking at how the price has changed, we see different results depending on the time frame:

• Year-to-Date (YTD): The price return is approximately 8.03%. The total return is also approximately 8.03%.

• One Year: The price return was a decline of approximately 21.17%. However, the one-year total return was approximately -12.37%.

It is important to know the difference between these two numbers. The price return only tracks how much the share price went up or down. The total return includes both the price changes and any cash distributions paid out to investors.

To visualize the one-year price change, an investor's $10,000 investment in shares would have been worth an estimated $7,883 one year ago based on the reconstructed price of approximately $23.01.

Income and distribution explanation

UNHG has a distribution yield of approximately 10.46%. This represents the cash paid out relative to the ETF's price. The trailing distributions were approximately $1.90.

However, it is important to remember that a high distribution yield does not mean an investor earned that much in total return. Distributions are cash payments, and they are separate from the actual growth or decline of the share price. In this case, the distribution frequency is described as irregular or less frequent.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, or the actual value of the fund's underlying assets. While a falling share price is not the same thing as NAV erosion, we use "erosion scores" to measure risk.

UNHG has an erosion score of 55, which is labeled as "Moderate price erosion." This is a measurement of risk regarding how the price has behaved over time.

Pros

• The fund provides a high distribution yield of approximately 10.46%.

• The year-to-date price return has been positive at approximately 8.03%.

Cons

• The one-year price return shows a significant decline of approximately 21.17%.

• The fund is leveraged, which can lead to larger price swings.

• The income rating grade is an "F."

Top Holdings

As of the latest data, the fund's top holdings include:

• UNITEDHEALTH GROUP INC (UNH): 66.94%

• FIRST AMERICAN TREASURY OBLIGS X (FXFXX): 8.40%

*Note: Holdings can change over time.*

Beginner takeaway

When looking at ETFs like UNHG, it is important to distinguish between price returns and total returns. A high distribution yield can look attractive, but it does not guarantee that the overall value of your investment is growing. Always look at the total return to see how much the investment actually gained or lost after all factors are included.