EMEQ: NOMURA FOCUSED EMERGING MARKETS EQUITY ETF
ETF Education Report: NOMURA FOCUSED EMERGING MARKETS EQUITY ETF (EMEQ)
What this ETF is trying to do
The NOMURA FOCUSED EMERGING MARKETS EQUITY ETF (EMEQ) is an exchange-traded fund that focuses on stocks in emerging markets. An emerging market is a country that is becoming more advanced as its economy grows. This ETF holds a variety of companies from these regions.
What the numbers show
The current price of one share is $67.21. Looking at the past year, we can see how the price has moved:
• Price Return: The one-year price return was approximately 78.68%. This number only measures how much the share price itself went up.
• Total Return: The one-year total return was approximately 83.76%. Total return is a more complete number because it includes both the price change and any distributions (cash payments) made to investors.
For a comparison, the estimated price from roughly one year ago was $37.62. Year-to-date (YTD), the price return and total return are both approximately 67.19%.
Income and distribution explanation
Some investors look for ETFs that pay out cash, which is called a distribution. This ETF has a distribution yield of approximately 1.65%. It is important to remember that a distribution yield is not the same as a total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value. This ETF has an irregular distribution frequency, meaning it does not pay out on a regular schedule.
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. It is important to distinguish between a falling share price and NAV erosion. While a share price can go up or down due to market changes, NAV erosion refers to a more structural loss of value. For EMEQ, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are some of the top holdings in this fund. Please note that this is a partial list and holdings can change over time:
• SK SQUARE (13.53%)
• Samsung Electronics Co Ltd (10.36%)
• SK Hynix Inc (8.98%)
• Reliance Industries Ltd GDR 144A (4.30%)
• MediaTek Inc (4.06%)
• Samsung C&T Corp (4.04%)
• Tencent Holdings Ltd (3.06%)
• Petroleo Brasileiro SA Petrobras ADR (2.39%)
Pros
• The ETF has shown strong positive price returns over the last year.
• The erosion-risk score suggests no price erosion has been detected.
Cons
• Distributions are irregular and do not happen on a set schedule.
• The fund focuses on emerging markets, which can be different from more established markets.
Beginner takeaway
When looking at EMEQ, it is helpful to look at both the price return and the total return to see the full picture of how the fund performed. Also, remember that while distributions provide cash, they are separate from the growth of the share price itself.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SK SQUARE | n/a | 13.53% |
| 2 | n/a | n/a | 12.83% |
| 3 | SAMSUNG ELECTRONICS CO LTD | n/a | 10.36% |
| 4 | SK HYNIX INC | n/a | 8.98% |
| 5 | RELIANCE INDUSTRIES LTD GDR 144A | RLNIY | 4.30% |
| 6 | MEDIATEK INC | n/a | 4.06% |
| 7 | SAMSUNG C&T CORP | n/a | 4.04% |
| 8 | TENCENT HOLDINGS LTD | n/a | 3.06% |
| 9 | n/a | n/a | 2.70% |
| 10 | PETROLEO BRASILEIRO SA PETROBRAS ADR | PBR | 2.39% |