Yes, you can only track the client's resources download progress using that event ^
Downloading resource(s) can happen immediately when the player joins the server (downloaded resources are started progressively as their downloads finish) or during the gameplay if an admin/dev restarts a resource or starts a new resource that needs to be downloaded.
To make a Loading/Downloading panel that appears when the player joins you just need to wait & check if the player is downloading, track the progress, and when done, initiate the next step (can be a login panel). Tracking download progress later during gameplay doesn't really matter.