EFRA: ISHARES ENVIRONMENTAL INFRASTRUCTURE AND INDUSTRIALS ETF
ISHARES ENVIRONMENTAL INFRASTRUCTURE AND INDUSTRIALS ETF (EFRA)
What this ETF is trying to do:
The iShares Environmental Infrastructure and Industrials ETF (EFRA) aims to track the performance of a specific group of companies involved in environmental infrastructure and industrial sectors. This includes firms that provide essential services like water management, waste disposal, and other critical utilities.
What the numbers show:
• Current Price: $34.63
• Year-to-date (YTD) Price Return: 4.33%
• YTD Total Return: 5.35%
• One-Year Price Return: 1.21%
• One-Year Total Return: 5.62%
• Three-Year Price Return: 34.61%
• Three-Year Total Return: 48.24%
The ETF has shown steady growth over the past year and three years, with a positive YTD performance.
Income and Distribution Explanation:
EFRA provides distributions to its investors. Over the last year, it paid out $1.45 per share in dividends. The distribution yield is currently 4.18%, which means for every dollar invested, you can expect about 4 cents in annual income from dividends. However, these payouts are irregular and less frequent.
NAV Erosion Explanation:
The ETF has a stable price trend with no signs of significant erosion based on the supplied data. The erosion score is 94, indicating "Stable/sideways" performance, which means there's little risk of NAV erosion according to StockValueFinder’s measures.
Pros:
• High Distribution Yield: EFRA offers a relatively high distribution yield compared to many other ETFs.
• Strong Long-Term Performance: The three-year returns are impressive, showing consistent growth over time.
• Diverse Holdings: With 99 holdings, the ETF is well-diversified across various environmental infrastructure and industrial companies.
Cons:
• Irregular Distributions: The payouts are not regular, which might be less convenient for investors looking for steady income.
• Potential Risk of High Yield: A high distribution yield does not guarantee that the underlying value of your investment (NAV) is stable. It’s important to monitor both price and total returns.
Beginner Takeaway:
EFRA is an ETF focused on environmental infrastructure and industrial companies, offering a decent mix of growth and income. With its strong performance over three years and high distribution yield, it could be attractive for investors seeking regular cash flow from their investments. However, the irregularity in distributions might make it less suitable for those who rely on predictable income streams.
Remember to always consider both price returns and total returns when evaluating an ETF’s performance. High yields alone do not ensure that your investment is safe or growing steadily.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP | WAB | 6.16% |
| 2 | VERALTO CORP | VLTO | 6.11% |
| 3 | SMURFIT WESTROCK PLC | SW | 5.98% |
| 4 | XYLEM INC | XYL | 5.78% |
| 5 | VEOLIA ENVIRONNEMENT SA | n/a | 5.77% |
| 6 | AMERICAN WATER WORKS CO INC | AWK | 5.75% |
| 7 | CLEAN HARBORS INC | CLH | 4.62% |
| 8 | UNITED UTILITIES GROUP PLC CLASS A | n/a | 4.00% |
| 9 | n/a | n/a | 3.61% |
| 10 | ESSENTIAL UTILITIES INC | WTRG | 3.19% |