What this ETF is trying to do

The ISHARES MSCI SPAIN ETF (ticker: EWP) is an exchange-traded fund designed to track companies in Spain. It holds a variety of different businesses, which helps spread out the investment across many different companies rather than just one.

Top Holdings

Based on the most recent data, here are some of the largest companies held in this ETF:

• BANCO SANTANDER SA (19.22%)

• BANCO BILBAO VIZCAYA ARGENTARIA SA (14.26%)

• IBERDROLA SA (12.77%)

• REPSOL SA (4.99%)

• CAIXABANK SA (4.54%)

Please note that this is a partial list of the holdings, and the companies held in an ETF 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: This measures only the change in the share price.

• Total Return: This includes both the share price changes and any cash distributions (dividends) paid out.

Here is how EWP has performed:

• Year-to-Date (YTD): The price return is approximately 7.40%, while the total return is approximately 9.10%.

• One Year: The price return was approximately 18.96%, and the total return was approximately 22.54%.

• Three Years: The price return was approximately 115.56%, and the total return was approximately 137.89%.

To give you an idea of price movement, the current price is $57.90. The estimated price from roughly one year ago was approximately $48.67.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 2.88%. This means the cash distributed is about 2.88% of the ETF's price.

The data shows that distributions for this ETF are "irregular" or "less frequent," with 2 payouts recorded over the last 12 months. It is important to remember that a distribution yield tells you how much cash was paid out, 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. Some investors worry about this because they want to keep their original investment amount stable.

For EWP, the erosion-risk score is 100, and the label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

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

• It has a high income rating grade of "A."

Cons

• The distributions are described as irregular or less frequent, meaning you may not receive cash payments on a steady schedule.

Beginner takeaway

When studying EWP, remember that the total return is higher than the price return because it includes the cash distributions. While the ETF provides a distribution yield, always look at the total return to see how the investment performed overall.