FEZ: STATE STREET(R) SPDR(R) EURO STOXX 50(R) ETF
ETF Education Report: STATE STREET(R) SPDR(R) EURO STOXX 50(R) ETF (FEZ)
What this ETF is trying to do
The FEZ is an Exchange Traded Fund (ETF) that tracks the Euro Stoxx 50. This means it holds a collection of different companies. Based on the top holdings provided, this fund includes large companies like ASML Holding NV, Siemens AG, and Banco Santander SA. Because it holds many different stocks, it provides exposure to various businesses in the Eurozone.
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 has changed.
• Total Return: This includes both the change in share price *and* any cash distributions (dividends) paid out to investors.
For FEZ, the numbers show:
• Year-to-Date (YTD): The price return is approximately 2.38%, while the total return is approximately 4.36%.
• One Year: The price return was approximately 6.01%, and the total return was approximately 8.93%.
• Three Years: The price return was approximately 58.04%, and the total return was approximately 71.10%.
To give you an idea of price movement, the current price is $65.92. The estimated price from roughly one year ago was approximately $62.18.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. FEZ has a distribution yield of approximately 2.77%. This means the cash distributed is about 2.77% of the ETF's price. The fund usually pays these out quarterly, and it has made 4 payments over the last 12 months.
It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they are separate from the growth of the share price itself.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. Some investors worry that high payouts might cause this. However, for FEZ, 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
• Positive Returns: The fund has shown positive price returns and total returns over the one-year and three-year periods.
• Diversification: The fund holds 55 total holdings, which helps spread investment across different companies.
Cons
• Partial Data: The list of top holdings is only a partial list, meaning there are many other companies in the fund not shown here.
• Market Risk: Like all ETFs, the value of the shares can go up or down based on the stock market.
Beginner takeaway
FEZ is an ETF that tracks large companies in Europe. When studying this fund, notice the difference between its price return and its total return; the total return is higher because it includes cash distributions. Currently, the fund shows no signs of price erosion according to its erosion-risk score.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ASML HOLDING NV | n/a | 10.19% |
| 2 | SIEMENS AG | n/a | 4.45% |
| 3 | BANCO SANTANDER SA | n/a | 4.19% |
| 4 | SAP SE | n/a | 4.16% |
| 5 | TOTALENERGIES SE | TTE:XPAR | 4.02% |
| 6 | SCHNEIDER ELECTRIC SE | n/a | 3.76% |
| 7 | ALLIANZ SE | n/a | 3.48% |
| 8 | BANCO BILBAO VIZCAYA ARGENTARIA SA | n/a | 3.07% |
| 9 | UNICREDIT SPA | n/a | 2.79% |
| 10 | IBERDROLA SA | n/a | 2.76% |