ETF Education Report: XTRACKERS HARVEST CSI 300 CHINA A-SHARES ETF (ASHR)

What this ETF is trying to do

The ASHR ETF is an exchange-traded fund designed to track a specific group of stocks in China. It focuses on the CSI 300 index, which includes many large companies in the Chinese market.

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 only measures how much the share price itself has changed.

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

For ASHR, the numbers show different results depending on how you look at them:

• Year-to-Date (YTD): The price return is approximately -0.61%. The total return is also approximately -0.61%.

• One Year: The price return was about -0.91%, but the total return was actually positive at approximately 1.41%. This shows that distributions helped boost the overall result.

• Three Years: The price return was approximately 28.19%, while the total return was higher at approximately 36.05%.

Based on an estimated price from roughly one year ago of $32.95, the current price is $32.65.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. ASHR has a distribution yield of approximately 2.32%. This means the cash paid out is about 2.32% of the ETF's price. The trailing distributions were approximately $0.76.

It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. StockValueFinder uses an erosion-risk score to measure this risk.

ASHR has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This suggests the fund's price movement is currently viewed as stable rather than showing signs of significant value loss.

Pros

• The three-year total return has been positive at approximately 36.05%.

• The erosion-risk score suggests the fund is currently stable.

Cons

• The one-year price return has been slightly negative.

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

Beginner takeaway

When studying ASHR, notice the difference between the share price and the total return. While the share price may go down slightly, the total return can be higher because of the cash distributions paid to investors. Always look at both numbers to get a full picture of how an ETF is performing.