What this ETF is trying to do

The ISHARES MSCI SWEDEN ETF (ticker: EWD) is an exchange-traded fund that focuses on companies in Sweden. It holds a variety of different stocks to provide exposure to the Swedish market. Because this is a partial list, we can only see some of its holdings, but it includes well-known names like Investor AB Class B and Spotify Technology SA.

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 only measures how much the share price itself has changed.

• Total Return: This includes both the change in share price AND any cash distributions (dividends) paid out to investors.

For EWD, the numbers show growth over different time periods:

• Year-to-Date (YTD): The price return is approximately 3.01%, while the total return is approximately 5.42%.

• One Year: The price return was approximately 7.44%, and the total return was approximately 11.33%.

• Three Years: The price return was approximately 54.56%, and the total return was approximately 70.51%.

To give you an idea of price movement, the current price is $50.71. The estimated price from roughly one year ago was approximately $47.20.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. EWD has a distribution yield of approximately 3.54%. This means the cash distributed is about 3.54% of the ETF's price. Over the last 12 months, the trailing distributions were approximately $1.80 per share. The data shows that these payments happen irregularly, with two payouts in the last year.

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 remember that a falling share price does not always mean NAV erosion is happening.

In the case of EWD, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Strong Total Returns: The total return over three years (approximately 70.51%) is higher than the price return, showing the benefit of included distributions.

• Income Rating: The ETF has an income rating grade of "A" with a score of 84.

• No Erosion Detected: The data shows no signs of price erosion.

Cons

• Irregular Income: Distributions are described as "irregular" or "less frequent," meaning you may not receive cash payments on a steady, predictable schedule.

• Partial Data: The list of holdings provided is only a partial list, so you are not seeing every company the ETF owns.

Beginner takeaway

EWD provides exposure to Swedish companies through a variety of holdings. When studying this ETF, notice that the total return is higher than the price return; this is because total return accounts for the cash distributions paid to you. While it offers a distribution yield, always remember that high yields are not the same as total profit.