What this ETF is trying to do

The STATE STREET(R) SPDR(R) S&P(R) METALS & MINING ETF (XME) is designed to give investors exposure to the metals and mining industry. It holds a variety of companies involved in these sectors. Based on its top holdings, the fund includes businesses like Materion Corp, Reliance Inc, and Steel Dynamics Inc. Because this list is partial, it only shows some of the 39 total holdings in the fund. Please remember that holdings can change over time.

What the numbers show

When looking at how this ETF has performed, it is important to understand two different types of returns: price return and total return. Price return only tracks the change in the share price. Total return includes both the share price change and the money paid out through distributions.

• Year-to-Date (YTD): The YTD price return is approximately 2.64%, while the YTD total return is approximately 2.85%.

• One-Year: The one-year price return is approximately 3.90%, and the one-year total return is approximately 4.23%.

• Three-Year: The three-year price return is approximately 107.03%, and the three-year total return is approximately 110.11%.

• Five-Year: The five-year total return is approximately 161.65%.

To give you an idea of price movement, the current price is $106.35. The estimated price from roughly one year ago was approximately $102.36.

Income and distribution explanation

XME provides cash distributions to investors. The distribution yield is approximately 0.32%. This number describes the cash paid out relative to the ETF's price. The fund usually pays these distributions on a quarterly basis, with 4 payments recorded over the last 12 months. The trailing distributions are approximately $0.34 per share.

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, we can look at the erosion-risk score. XME has an erosion score of 94, which is labeled as "Stable / sideways" with a "good" severity. There is no severe erosion-risk flag for this ETF.

Pros

• Strong Long-Term Total Returns: The fund has shown significant total returns over three and five years.

• Stable Price Trend: The erosion-risk score suggests the price has been relatively stable rather than steadily declining.

• Diversified Industry Exposure: The fund holds many different companies across the metals and mining sectors.

Cons

• Lower Distribution Yield: The distribution yield of 0.32% is relatively low compared to some other types of income-focused funds.

• Sector Concentration: Because the fund focuses specifically on metals and mining, it may be sensitive to changes in those specific industries.

Beginner takeaway

XME is an ETF focused on the metals and mining industry. It has shown both price growth and total returns over several years. While it pays distributions, the yield is modest. The data shows a stable price trend without a severe erosion-risk flag. Always remember that past performance does not guarantee what will happen in the future.