WEEI: Westwood Salient Enhanced Energy Income ETF
ETF Education Report: Westwood Salient Enhanced Energy Income ETF (WEEI)
What this ETF is trying to do
The Westwood Salient Enhanced Energy Income ETF (WEEI) is an exchange-traded fund that focuses on the energy sector. Based on its top holdings, it invests in large energy companies like Exxon Mobil Corp and Chevron Corp. The goal of this fund is to provide income to investors through regular cash payments.
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: This measures only the change in the share price. For WEEI, the year-to-date (YTD) price return is approximately 14.60%. The one-year price return is approximately 13.45%.
• Total Return: This includes both the share price change *and* the money paid out in distributions. WEEI's YTD total return is approximately 24.92%, and its one-year total return is approximately 27.66%.
Because the total return is higher than the price return, it shows that the distributions added significant value to the overall performance. To see how the price has changed, we can look at the current price of $24.58 compared to an estimated price from roughly one year ago, which was approximately $21.67.
Income and distribution explanation
This ETF is designed to pay out cash to investors. The distribution yield is approximately 10.98%. This number describes the cash distributions relative to the current ETF price. WEEI usually pays these out monthly, having made 12 payments over the last year.
It is important to remember that a high distribution yield is not the same as total return. While high yields provide cash income, they do not guarantee that your original investment will stay the same value.
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 WEEI, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• Strong Total Returns: The total return over the last year has been significantly higher than the price return alone.
• High Yield: The fund offers a high distribution yield for those seeking regular cash payments.
• Sector Focus: It provides exposure to many different energy companies.
Cons
• Concentration: The fund's top holdings, such as Exxon Mobil Corp (24.11%) and Chevron Corp (13.56%), make up a large portion of the portfolio.
• Sector Risk: Because it focuses on energy, its performance is closely tied to the energy industry.
Beginner takeaway
WEEI is an energy-focused ETF that has shown both share-price growth and high cash distributions. When looking at high-yield ETFs, always check the "total return" to see how much value you are actually gaining, rather than just looking at the dividend yield.
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*Note: This report is for educational purposes only and does not constitute financial advice. It does not recommend buying, selling, or holding this ETF.*
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | EXXON MOBIL CORP | XOM | 24.11% |
| 2 | CHEVRON CORP | CVX | 13.56% |
| 3 | CONOCOPHILLIPS | COP | 6.12% |
| 4 | VALERO ENERGY CORP | VLO | 5.31% |
| 5 | WILLIAMS COMPANIES INC | WMB | 5.14% |
| 6 | SLB LTD | SLB | 5.04% |
| 7 | PHILLIPS 66 | PSX | 3.97% |
| 8 | BAKER HUGHES CO CLASS A | BKR | 3.89% |
| 9 | KINDER MORGAN INC CLASS P | KMI | 3.87% |
| 10 | EOG RESOURCES INC | EOG | 3.85% |