What this ETF is trying to do

The XTRACKERS US GREEN INFRASTRUCTURE SELECT EQUITY ETF (UPGR) focuses on companies involved in green infrastructure within the United States. This means the fund invests in businesses that work on things like clean energy and sustainable systems.

Some of its Top Holdings include:

• FuelCell Energy Inc (7.38%)

• Shoals Technologies Group Inc (3.22%)

• Bloom Energy Corp (2.91%)

• XPLR Infrastructure LP (2.71%)

• Ryerson Holding Corp (2.62%)

• Reliance Inc (2.61%)

• Green Plains Inc (2.52%)

• PureCycle Technologies Inc (2.48%)

• Idex Corp (2.42%)

• Rivian Automotive Inc (2.41%)

Please note that these are only the largest holdings and can change over time.

What the numbers show

When looking at this ETF, it is important to understand two different types of returns: price return (how much the share price changed) and total return (which includes both price changes and any cash distributions paid out).

• One-Year Performance: Over the last year, the share price declined by approximately 13.64%. However, the one-year total return was -11.24%, which shows that cash distributions helped slightly offset some of the price drop.

• Year-to-Date (YTD): So far this year, the price return is -10.71% and the total return is -8.33%.

• Three-Year Performance: Looking further back, the ETF has grown. The three-year price return was 12.87%, and the three-year total return was 18.03%.

The current price is $21.59. An estimated price from roughly one year ago was $25.00. For example, if you had invested $10,000 into the shares alone one year ago, that investment would be worth less today due to the share-price decline.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 2.92%. Over the last year, it paid out $0.63 per share.

It is important to know that these payments are "irregular," meaning they do not happen on a set schedule. In the last 12 months, there were only three payouts. While distributions provide cash, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the underlying assets in the fund. StockValueFinder uses an "erosion-risk score" to measure this risk. This ETF has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk regarding how the price has behaved, rather than a guarantee that the fund's value has collapsed.

Pros

• The ETF has shown positive total returns over a three-year period.

• It provides some level of cash income through distributions.

Cons

• The share price and total return have both been negative over the last year and year-to-date.

• Distributions are infrequent and irregular.

• There is a measurement of "mild" price erosion.

Beginner takeaway

When studying an ETF like UPGR, remember that the share price and the total return are not the same thing. The price return only tells you how the stock price moved, while the total return includes the cash paid out to investors. Also, keep in mind that a falling share price does not always mean the entire value of the fund is disappearing, but it is something to watch alongside the erosion-risk score.