VRAI: VIRTUS REAL ASSET INCOME ETF
What this ETF is trying to do
The Virtus Real Asset Income ETF (VRAI) is an exchange-traded fund listed on the NYSE. Based on its holdings, which include companies like HF Sinclair Corp and Northern Oil & Gas Inc, this fund focuses on real assets. It holds a variety of different companies, with the data showing 90 total holdings.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: 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 money paid out through distributions.
For VRAI, the numbers show:
• Year-to-Date (YTD): The price return is approximately 18.02%, while the total return is approximately 20.13%.
• One Year: The price return was approximately 14.13%, and the total return was approximately 18.14%.
• Three Years: The price return was approximately 27.37%, and the total return was approximately 47.89%.
To give you an idea of price movement, the current price is $27.40. The estimated price from roughly one year ago was approximately $24.01.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. VRAI has a distribution yield of approximately 3.19%. This means the cash distributions are about 3.19% of the ETF's price. Over the last 12 months, the trailing distributions were approximately $0.87 per share. These payments usually happen quarterly, and there were 4 payouts in the last year.
It is important to remember that a high distribution yield is not the same thing as total return. While distributions provide cash, they are separate from the growth of the share price.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Some investors worry that high payouts might cause this. However, for VRAI, the erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• Positive Returns: The fund has shown positive price returns and total returns over the last year and three years.
• Income Generation: The fund provides regular distributions, which can be helpful for those seeking cash flow.
• Low Erosion Risk: The current data shows no detected price erosion.
Cons
• Partial Data: The list of Top Holdings is only a partial list, meaning there are many other companies in the fund that are not shown here.
• Market Risk: Like all ETFs, the share price can change based on market conditions.
Beginner takeaway
When studying VRAI, notice the difference between the price return and the total return. The total return is higher because it accounts for the cash distributions paid to investors. While the fund provides regular income, always remember that a distribution yield is just one part of how an ETF performs.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | CASH | n/a | 2.54% |
| 2 | HF SINCLAIR CORP | DINO | 1.65% |
| 3 | NORTHERN OIL & GAS INC | NOG | 1.44% |
| 4 | SM ENERGY CO | SM | 1.44% |
| 5 | ANGLOGOLD ASHANTI PLC | AU | 1.39% |
| 6 | APA CORP | APA | 1.35% |
| 7 | CENOVUS ENERGY INC | n/a | 1.34% |
| 8 | SLB LTD | SLB | 1.34% |
| 9 | SUNCOKE ENERGY INC | SXC | 1.32% |
| 10 | PERMIAN RESOURCES CORP CLASS A | PR | 1.31% |