ETF Education Report: iShares International Country Rotation Active ETF (CORO)

What this ETF is trying to do

The iShares International Country Rotation Active ETF (CORO) is an exchange-traded fund that focuses on international markets. Instead of just following one index, it uses an active strategy to move between different countries. Based on its Top Holdings, the fund has significant exposure to various regions, including Japan, Canada, Switzerland, Spain, and South Korea.

What the numbers show

When looking at how an ETF performs, it is important to look at two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price. For CORO, the year-to-date (YTD) price return is approximately 18.23%, and the one-year price return is approximately 19.31%.

• Total Return: This includes the share price change plus any cash distributions (dividends) paid out. The YTD total return is approximately 19.21%, and the one-year total return is approximately 23.10%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $30.79, and the current price is $36.74.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. CORO has a distribution yield of approximately 2.76%. This means the cash paid out is about 2.76% of the ETF's price. Over the last 12 months, there were 3 payouts. The distributions are described as "irregular" or "less frequent," meaning they do not happen on a strict monthly or quarterly schedule.

It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they are only one part of how an investor earns money from an ETF.

NAV erosion explanation

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

For CORO, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Positive Returns: Both the price return and total return have been positive over the last year.

• Diversification: The fund holds many different international assets, such as the iShares MSCI Japan ETF and the iShares MSCI Canada ETF.

Cons

• Irregular Income: The distributions do not follow a regular, predictable schedule.

• Partial Data: The list of holdings provided is only a partial list of the total assets held in the fund.

Beginner takeaway

When studying CORO, notice the difference between the share price movement and the total return. The total return is higher than the price return because it accounts for the cash distributions paid to investors. Always remember that while distributions provide income, they are separate from the growth of the share price itself.