VIRTUS DUFF & PHELPS CLEAN ENERGY ETF (VCLN) Report

What this ETF is trying to do

The VIRTUS DUFF & PHELPS CLEAN ENERGY ETF (VCLN) is an exchange-traded fund designed to invest in the clean energy sector. It provides exposure to companies involved in renewable energy and related technologies.

What the numbers show

The current price of VCLN is $27.42. Based on estimated data, the price roughly one year ago was $25.33.

When looking at performance, it is important to distinguish between price return and total return:

• Price Return measures only the change in the share price.

• Total Return includes both the share price change and the impact of distributions (cash payments).

The historical data shows:

• Year-to-Date (YTD): The price return is approximately 7.18%, while the total return is approximately 7.85%.

• One-Year: The price return is approximately 8.26%, while the total return is approximately 10.28%.

• Three-Year: The price return is approximately 70.45%, while the total return is approximately 78.10%.

• Five-Year: The five-year total return is approximately 19.54%.

Income and distribution explanation

VCLN provides cash distributions to investors. The distribution yield is approximately 1.94%. Over the last 12 months, there were 2 distributions. The distribution frequency is described as "irregular / less frequent." It is important to remember that a distribution yield shows the cash paid relative to the price, but it is not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the fund's price-based erosion-risk score is 100, which is labeled as "No price erosion detected," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in the portfolio (note that this list is partial):

• FIRST SOLAR INC: 7.75%

• BLOOM ENERGY CORP CLASS A: 6.90%

• CHINA YANGTZE POWER CO LTD CLASS A: 6.45%

• NEXTPOWER INC: 5.47%

• VESTAS WIND SYSTEMS AS: 4.41%

• ENPHASE ENERGY INC: 4.22%

• IBERDROLA SA: 3.93%

• CLEARWAY ENERGY INC CLASS C: 3.68%

• EDP-ENERGIAS DE PORTUGAL SA: 3.37%

• PRYSMIAN SPA: 2.93%

Pros

• The fund has shown positive price and total returns over one, three, and five-year periods.

• The erosion-risk score indicates no price erosion has been detected.

Cons

• Distributions are irregular and less frequent rather than being a steady monthly or quarterly payment.

Beginner takeaway

VCLN focuses on the clean energy industry. While it pays a distribution yield, investors should look at the "total return" to see how the fund has performed including those payments. The data shows that for this ETF, the total return has been higher than the price return over the last year.