EMCS: XTRACKERS MSCI EMERGING MARKETS CLIMATE SELECTION ETF
What this ETF is trying to do
The XTRACKERS MSCI EMERGING MARKETS CLIMATE SELECTION ETF (Ticker: EMCS) is an exchange-traded fund designed to invest in emerging markets with a focus on climate selection. This means it looks for companies in developing economies that meet certain environmental criteria. The fund holds a total of 82 different holdings.
What the numbers show
The data shows that EMCS has experienced significant growth in its share price over various timeframes.
• Year-to-Date (YTD): The price return is approximately 32.73%. When including distributions, the YTD total return is approximately 33.40%.
• One-Year: The one-year price return is approximately 33.56%. The one-year total return is approximately 35.88%.
• Three-Year: The three-year price return is approximately 107.41%. The three-year total return is approximately 117.88%.
• Five-Year: The five-year total return is approximately 64.12%.
It is important to understand the difference between these numbers. The price return only measures how much the share price itself changed. The total return includes both the change in share price and any cash distributions paid out to investors.
An estimated price from roughly one year ago was $35.42. The current price is $47.30.
Income and distribution explanation
EMCS provides cash distributions to investors, but they are not paid out on a regular schedule. The distribution frequency is described as "irregular" or "less frequent," with only 2 payouts recorded in the last 12 months.
The distribution yield is approximately 1.43%. This number represents the cash distributions relative to the current ETF price. While this provides some income, it is much lower than the overall total returns seen over the last three years.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be a sign of erosion, they are not the same thing.
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. However, the fund has an erosion score of 100, which is labeled as "No price erosion detected," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.
Pros
• Strong Growth: The fund has shown high positive total returns over one, three, and five-year periods.
• Price Stability: The erosion score suggests there has been no significant price erosion detected.
• Income Rating: The fund has an income rating grade of "A" with a score of 86.
Cons
• Irregular Income: Distributions are not frequent or predictable, which may be difficult for investors who rely on steady cash flow.
• Partial Data: The list of top holdings is only a partial view of the full portfolio.
Beginner takeaway
EMCS has shown strong price and total returns over the last several years. It offers a way to invest in emerging markets with a climate focus, but investors should note that the cash distributions are irregular. Always remember that high total returns in the past do not guarantee what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | n/a | n/a | 19.26% |
| 2 | SAMSUNG ELECTRONICS CO LTD | n/a | 10.26% |
| 3 | SK HYNIX INC | n/a | 7.26% |
| 4 | TENCENT HOLDINGS LTD | n/a | 4.64% |
| 5 | n/a | n/a | 2.83% |
| 6 | MEDIATEK INC | n/a | 2.15% |
| 7 | DELTA ELECTRONICS INC | n/a | 1.66% |
| 8 | SOUTHERN COPPER CORP | SCCO | 1.59% |
| 9 | CHINA CONSTRUCTION BANK CORP CLASS H | n/a | 1.57% |
| 10 | HDFC BANK LTD | n/a | 1.53% |