The AVG() function in DB2 is specifically designed to calculate the average value of a numeric column. It adds up all the values in the column and divides them by the total number of rows. 

Encryption in DB2 ensures the confidentiality of data, meaning that even if unauthorized users gain access to the data, they won't be able to understand or decipher it without the proper decryption keys. This ensures that sensitive information remains protected from unauthorized access or viewing. 

In a Visual Explain diagram, a node represents a step in the query execution plan. Each node corresponds to an operation performed during query execution, such as scanning a table or performing a join. Understanding the meaning of each node helps in analyzing and optimizing the query execution plan. 

Transparent Data Encryption (TDE) is a feature in DB2 that encrypts data at rest, providing protection against unauthorized access to sensitive information stored in the database files. It ensures that data remains encrypted even if the physical media is stolen or compromised. Other options mentioned may provide encryption in transit or custom encryption, but TDE specifically addresses data encryption at rest within the DB2 database. 

The utility commonly used for creating backups in DB2 is the BACKUP utility. This utility allows users to back up entire databases or specific tablespaces, ensuring that data can be restored in case of data loss or corruption. It provides options for full or incremental backups, as well as for specifying backup locations and formats. 

A materialized view in DB2 is a database object that contains the results of a query and is physically stored on disk, allowing for faster query performance. Unlike regular views, which are virtual and only stored as a predefined query, materialized views are materialized or precomputed and updated automatically when the underlying data changes, ensuring data consistency. 

Log shipping in disaster recovery ensures that changes made to the primary DB2 database are replicated to a standby database in real-time or near real-time. This replication allows for point-in-time recovery by applying transaction logs to the standby database, ensuring minimal data loss in the event of a disaster. 

Data compression in DB2 can improve database performance by reducing the amount of data that needs to be stored, transferred, and processed. With smaller data footprints, compression can lead to faster query execution times, reduced I/O operations, and improved memory utilization, resulting in overall performance enhancements. However, the impact of compression on performance may vary depending on factors such as the compression algorithm used, data characteristics, and workload patterns. Properly configured compression strategies can effectively balance storage savings with performance considerations in DB2 environments. 

Visual Explain assists in identifying potential bottlenecks in query execution by highlighting high-cost operations. By visually representing the query execution plan, it makes it easier to identify operations that are resource-intensive or time-consuming, thus allowing for optimization of the query for better performance. 

In a distributed DB2 environment, several considerations need to be made when using views. Network latency can impact performance, so optimizing network connectivity is crucial. Data consistency across distributed systems is essential to ensure accurate results. Security concerns such as data encryption and access control must be addressed to prevent unauthorized access to sensitive information. Considering all these factors is essential for efficient and secure operations in a distributed DB2 environment.