ETF Education Report: GLOBAL X FTSE SOUTHEAST ASIA ETF (ASEA)

What this ETF is trying to do

The GLOBAL X FTSE SOUTHEAST ASIA ETF (ticker: ASEA) is an exchange-traded fund designed to provide exposure to the Southeast Asia region.

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 how much the share price has changed.

• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately 14.30%, while the total return is approximately 16.66%.

• One Year: The price return was approximately 20.79%, and the total return was approximately 25.75%.

• Three Years: The price return was approximately 46.30%, and the total return was approximately 64.64%.

• Five Years: The five-year total return is approximately 75.02%.

To visualize the price change, if you look at an estimated price from roughly one year ago of $17.34, the current price is $20.95.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 3.70%. This number describes the cash paid out relative to the current ETF price. Over the last 12 months, there were two payouts. The frequency of these payments is described as irregular or less frequent.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly over time. For this ETF, the erosion-risk score is 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Pros

• The ETF has shown positive price returns across one, three, and five-year periods.

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

• The income rating for this ETF is an "A" grade.

Cons

• The distribution frequency is irregular, meaning payments do not happen on a strict, predictable schedule.

• No specific top holdings were supplied in the data to show exactly which companies make up the fund.

Beginner takeaway

When studying ASEA, it is helpful to distinguish between the share price and the total return. While the share price has grown, the total return is even higher because it accounts for the cash distributions paid to investors. Always remember that a distribution yield tells you about cash income, but it is only one part of an ETF's overall performance.