EPP: ISHARES MSCI PACIFIC EX JAPAN ETF
Share-split context: A forward split was recorded on Jul 24, 2008 with coefficient 3.000003. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.
ETF Education Report: ISHARES MSCI PACIFIC EX JAPAN ETF (EPP)
What this ETF is trying to do
The ISHARES MSCI PACIFIC EX JAPAN ETF (ticker: EPP) is an exchange-traded fund designed to track companies in the Pacific region, excluding Japan. It holds a variety of different companies across various industries. Because this is a partial list, we can only see some of its holdings. Some of the top companies in this fund include BHP Group Ltd, Commonwealth Bank of Australia, and DBS Group Holdings Ltd. Please remember that holdings can change over time.
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.
• Total Return: This includes both the share price change and any cash distributions (dividends) paid out.
For EPP, the numbers show:
• Year-to-Date (YTD): The price return is approximately 7.93%, while the total return is approximately 9.58%.
• One-Year: The price return is approximately 4.53%, while the total return is approximately 8.36%.
• Three-Year: The price return is approximately 36.86%, while the total return is approximately 53.34%.
This ETF has a history of "forward splits." In a forward split, each old share becomes multiple new shares. This makes the price per share look lower, but it does not change how much of the fund you own.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. EPP has a distribution yield of approximately 3.43%. This means the cash paid out is about 3.43% of the current share price. Over the last 12 months, there were two payouts. It is important to remember that a high distribution yield is not the same thing as total return, and receiving cash does not guarantee your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. StockValueFinder uses an "erosion-risk score" to measure this risk. EPP has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present for this ETF.
Pros
• The fund has shown positive total returns over the one-year and three-year periods.
• The erosion-risk score suggests a stable trend rather than high risk of value loss.
Cons
• The distribution frequency is described as "irregular" or "less frequent," meaning you may not receive cash payments on a regular schedule.
Beginner takeaway
When studying EPP, notice the difference between the price return and the total return. The total return is higher because it accounts for the cash distributions paid to investors. While this fund provides both price growth and cash income, always remember that past performance does 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 | BHP GROUP LTD | n/a | 9.26% |
| 2 | COMMONWEALTH BANK OF AUSTRALIA | n/a | 8.98% |
| 3 | DBS GROUP HOLDINGS LTD | n/a | 5.11% |
| 4 | AIA GROUP LTD | n/a | 4.59% |
| 5 | WESTPAC BANKING CORP | n/a | 3.92% |
| 6 | NATIONAL AUSTRALIA BANK LTD | n/a | 3.84% |
| 7 | ANZ GROUP HOLDINGS LTD | n/a | 3.40% |
| 8 | OVERSEA-CHINESE BANKING CORP LTD | n/a | 3.19% |
| 9 | WESFARMERS LTD | n/a | 3.06% |
| 10 | MACQUARIE GROUP LTD | n/a | 2.79% |