BCHI: GMO BEYOND CHINA ETF
What this ETF is trying to do
The GMO Beyond China ETF (ticker: BCHI) is an exchange-traded fund that focuses on companies outside of China. Based on its top holdings, the fund includes various international companies such as Samsung Electronics Co Ltd and TSM. Please note that the list of holdings provided is only a partial list of the 104 total holdings in the fund, and these holdings can change over time.
What the numbers show
When looking at an ETF, it is important to understand the difference between "price return" and "total return."
• Price Return: This only measures how much the share price has changed. For BCHI, the one-year price return was approximately -6.66%. The year-to-date (YTD) price return was approximately -12.45%.
• Total Return: This includes both the share price changes and the money paid out through distributions. For BCHI, the one-year total return was approximately 33.23%, and the YTD total return was approximately 20.33%.
To see how the price changed, we can look at an estimated price from roughly one year ago, which was approximately $28.63. The current price is $26.72. If you had invested $10,000 into the share price alone one year ago, that investment would have decreased in value due to the negative price return before any distributions were added.
Income and distribution explanation
BCHI has a high distribution yield of approximately 42.40%. This means the fund pays out a large amount of cash relative to its share price. Over the last 12 months, there were 5 distributions. These payments usually happen on a quarterly basis, with Tuesday being the most common day for payouts.
It is important to remember that a high distribution yield does not mean an investor earned that same percentage as a total return. While these distributions provide cash income, they do not guarantee that your original investment (your principal) will stay the same value.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. While a falling market price does not always mean the NAV has declined, we use an "erosion-risk score" to measure this risk.
BCHI has an erosion-risk score of 75, which is labeled as "mild price erosion." This indicates a mild level of risk regarding price deterioration.
Pros
• The fund has provided a strong one-year total return of approximately 33.23%.
• It offers a high distribution yield for those seeking cash income.
Cons
• The fund has experienced a share-price decline, with a YTD price return of approximately -12.45%.
• There is a recorded mild erosion-risk score.
Beginner takeaway
When you see an ETF with a very high distribution yield, it is important to look at the total return. A fund can pay out a lot of cash, but if the share price is falling significantly, it can impact your overall investment. Income investors often look for funds where the share price stays steady or grows, rather than funds that experience a decline in share price.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SAMSUNG ELECTRONICS CO LTD | n/a | 13.04% |
| 2 | n/a | TSM | 12.64% |
| 3 | MEDIATEK INC | n/a | 4.31% |
| 4 | DELTA ELECTRONICS INC | n/a | 3.90% |
| 5 | n/a | n/a | 3.29% |
| 6 | CEMEX SAB DE CV ADR | CX | 3.13% |
| 7 | BIZLINK HOLDING INC | n/a | 2.46% |
| 8 | KIA CORP | n/a | 2.41% |
| 9 | CUMMINS INDIA LTD | n/a | 2.18% |
| 10 | MOBILE WORLD INVESTMENT CORP | n/a | 2.17% |