Understanding the iShares Asia/Pacific Dividend ETF (DVYA)

What this ETF is trying to do

The iShares Asia/Pacific Dividend ETF, known by its ticker symbol DVYA, is an exchange-traded fund (ETF) listed on the NYSE. This type of fund is designed to provide exposure to dividend-paying companies within the Asia/Pacific 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 the change in the share price. For DVYA, the one-year price return was approximately 16.63%. The three-year price return was approximately 57.71%.

• Total Return: This is a more complete measure because it includes both the share price changes and the money paid out through distributions. For DVYA, the one-year total return was approximately 22.31%, and the three-year total return was approximately 86.14%.

To see how the price has moved, we can look at an estimated price from roughly one year ago. The price was approximately $42.55, and the current price is $49.62.

Income and distribution explanation

Some investors look for ETFs that pay out cash, which are called distributions. DVYA has a distribution yield of approximately 4.69%. This means the cash distributed is about 4.69% of the ETF's price. Over the last 12 months, there were 4 payouts, and these usually happen on a quarterly basis.

It is important to remember that a high distribution yield is not the same thing as total return. While distributions provide cash income, they are separate from the growth of the share price itself.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. Some investors worry about this because they want to make sure their original investment stays stable while they collect income.

For DVYA, the erosion-risk score is 100, and the label indicates "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The ETF has shown positive price returns over the one-year and three-year periods.

• The total return figures are higher than the price return figures, showing that distributions have added value.

• The fund has a high income rating grade of "A."

Cons

• The provided data does not list any specific Top Holdings or the number of companies held in the portfolio.

Beginner takeaway

When studying DVYA, notice the difference between how much the share price grew and the total return which includes cash payments. This ETF has shown growth in both its share price and its total return over the last three years, and it currently shows no signs of price erosion.