Share-split context: A reverse split was recorded on Nov 7, 2016 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.

What this ETF is trying to do

The ISHARES MSCI ITALY ETF (EWI) is an exchange-traded fund that focuses on companies in Italy. It holds a variety of different stocks to give investors exposure to the Italian market. According to the data, this ETF holds 31 different companies in total.

Top Holdings

The following are some of the largest companies held by this ETF:

• UNICREDIT SPA (18.01%)

• INTESA SANPAOLO (15.01%)

• ENEL SPA (10.59%)

• ENI SPA (4.69%)

• PRYSMIAN SPA (4.69%)

• GENERALI (4.66%)

• FERRARI NV (4.47%)

• BANCA MONTE DEI PASCHI DI SIENA (4.04%)

• POSTE ITALIANE SPA (3.77%)

• BPER BANCA SPA (3.65%)

Please note that this is a partial list of the largest holdings and can change over time.

What the numbers show

When looking at how this ETF has performed, it is important to understand two different types of returns: price return and total return. Price return only tracks how much the share price has changed. Total return includes both the price change and any cash distributions (dividends) paid out.

• Year-to-Date (YTD): The price return is approximately 3.72%, while the total return is approximately 5.75%.

• One-Year: The price return is approximately 8.49%, while the total return is approximately 12.07%.

• Three-Year: The price return is approximately 87.15%, while the total return is approximately 107.22%.

This ETF has a history of a reverse split, which occurred on November 7, 2016. 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 change the actual value of the investment at that moment.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 3.33%. Over the last 12 months, it has made two distributions.

It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same thing as your total return.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an "erosion-risk score" to measure this risk. For EWI, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The ETF has shown positive price returns and total returns over the one-year and three-year periods.

• The erosion-risk measurement is rated as "good."

Cons

• The distributions are described as "irregular" or "less frequent," meaning they do not happen on a set schedule.

Beginner takeaway

When studying this ETF, remember to look at both the share price and the total return. The total return gives a fuller picture because it includes the cash distributions paid to investors. Also, keep in mind that while this ETF provides some income through its 3.33% yield, the share price can still move up or down.