Share-split context: A reverse split was recorded on Oct 26, 2018 with coefficient 0.5. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: VANECK J.P. MORGAN EM LOCAL CURRENCY BOND ETF (EMLC)

What this ETF is trying to do

The EMLC ETF is an exchange-traded fund that focuses on bonds from emerging markets. These are debt instruments issued in the local currency of those countries.

What the numbers show

When looking at this ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This only measures how much the share price has changed. For example, the one-year price return was approximately -2.40%. This means the share price went down slightly over that period.

• Total Return: This includes both the change in share price *and* the money paid out through distributions. The one-year total return was approximately 3.90%.

Looking at different timeframes, the year-to-date (YTD) price return is approximately -4.07%, while the YTD total return is approximately 0.56%. Over three years, the price return was about 6.26%, but the total return was much higher at approximately 28.02%.

This ETF has a history of a reverse split. In a reverse split, multiple old shares are combined into fewer new shares. This causes the price per share to rise mechanically, but it does not increase the actual value of the investment.

Income and distribution explanation

This ETF provides regular cash payments, known as distributions. The distribution yield is approximately 6.45%. This number describes the cash payments relative to the current ETF price. These distributions usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. Total return is the most complete way to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, which is the actual value of the assets held by the fund. While a falling share price can sometimes look like erosion, they are not the same thing.

StockValueFinder uses an "erosion-risk score" to measure this risk. EMLC has an erosion score of 94, which is labeled as "Stable / sideways." There is no severe erosion-risk flag for this ETF.

Pros

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

• The three-year total return has been positive at approximately 28.02%.

• The erosion-risk measurement is considered "good."

Cons

• The share price has seen some declines, such as the YTD price return of approximately -4.07%.

• The fund has a history of reverse splits.

Beginner takeaway

When looking at EMLC, pay close attention to the difference between price return and total return. Because this fund pays out regular distributions, the share price might move differently than the total amount an investor earns. Always look at the total return to get a fuller picture of performance.