ETF Education Report: WEALTHTRUST DBS LONG TERM GROWTH ETF (WLTG)

What this ETF is trying to do

The WEALTHTRUST DBS LONG TERM GROWTH ETF (WLTG) is an exchange-traded fund listed on the NYSE. While the specific investment goal isn't detailed in the data, it holds a variety of different assets. Its Top Holdings include several large funds and companies, such as the iShares Russell 1000 ETF (10.32%), Vanguard Mid-Cap ETF (5.23%), and Invesco QQQ Trust (5.08%). Other holdings include companies like Taiwan Semiconductor (3.99%) and NVIDIA Corp (3.90%). Please note that this list is partial and holdings can change over time.

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 WLTG, the one-year price return was approximately 10.03%. The three-year price return was approximately 74.06%.

• Total Return: This includes the share price change plus any distributions (cash paid to investors). The one-year total return was approximately 14.83%, and the three-year total return was approximately 83.93%.

For a quick comparison, the current price is $38.21. The estimated price from roughly one year ago was approximately $34.72.

Income and distribution explanation

This ETF provides a distribution yield of approximately 4.04%. This represents the cash distributions relative to the ETF's price. The trailing distributions were $1.54 per share. It is important to remember that a distribution yield is not the same as total return. Also, distributions are paid out irregularly, with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases. Some investors worry that high payouts might cause this. However, for WLTG, 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

• The ETF has shown positive price returns over the one-year and three-year periods.

• The total return is higher than the price return, meaning distributions have added value to the overall performance.

• The erosion-risk measurement is rated as "good."

Cons

• Distributions are described as irregular or less frequent, meaning they do not happen on a steady schedule.

• The provided list of holdings is only a partial view of the total portfolio.

Beginner takeaway

When studying WLTG, notice the difference between how much the share price grew and the total return. The total return is higher because it includes the cash distributions. While the ETF offers a 4.04% distribution yield, always remember that high yields alone do not tell the whole story of how an investment performs.