Share-split context: A forward split was recorded on Jul 24, 2008 with coefficient 2. 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 SOUTH AFRICA ETF (EZA)

What this ETF is trying to do

The ISHARES MSCI SOUTH AFRICA ETF (EZA) is an exchange-traded fund designed to track companies in South Africa. It provides investors with exposure to a variety of businesses within that country. This ETF holds 32 different companies in total.

Top Holdings

Because the list provided is a partial list, these are the largest companies held by the fund:

• ANGLOGOLD ASHANTI PLC (12.72%)

• GOLD FIELDS LTD (8.66%)

• NASPERS LTD CLASS N (8.44%)

• FIRSTRAND LTD (7.42%)

• STANDARD BANK GROUP LTD (6.20%)

• MTN GROUP LTD (4.47%)

• CAPITEC LTD (4.46%)

• VALTERRA PLATINUM LTD (4.31%)

• ABSA GROUP LTD (3.41%)

• IMPALA PLATINUM HOLDINGS LTD (3.29%)

Please remember that holdings can change over time.

What the numbers show

When looking at performance, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price moves. Total return includes both the price movement and any cash distributions (dividends) paid out.

• Year-to-Date (YTD): The price return is approximately -9.46%, while the total return is approximately -7.55%.

• One-Year: The price return was approximately -3.86%, but the total return was positive at approximately 3.57%.

• Three-Year: The price return was approximately 68.49%, and the total return was approximately 98.94%.

This ETF has a history of "forward splits." This means that in the past, each old share became multiple new shares. When this happens, the price per share drops proportionally, but your total ownership stays the same. This is a normal part of how some stocks work and does not mean value was lost.

Income and distribution explanation

This ETF has a distribution yield of approximately 8.10%. This represents the cash distributions relative to the ETF price. The fund has paid out trailing distributions of approximately 5.05. These payments have occurred on an irregular or less frequent basis, with two payouts in the last 12 months.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return.

NAV erosion explanation

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

For this ETF, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The ETF has shown strong total returns over a three-year period.

• It offers a relatively high distribution yield for those seeking cash income.

Cons

• The year-to-date price return has been negative.

• Distributions are irregular and do not happen on a fixed schedule.

Beginner takeaway

When looking at EZA, it is helpful to look at both the share price and the total return. Because this fund pays out cash, the total return might look different than the price return alone. Always remember that high yields can be misleading, and you should look at the overall performance of the fund over time.