ETF Education Report: IBTG

What this ETF is trying to do

The ISHARES IBONDS DEC 2026 TERM TREASURY ETF (IBTG) is an exchange-traded fund. Based on its name, it focuses on Treasury securities that reach a specific end date in December 2026.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how the share price moves. Total return includes both the price movement and the cash distributions paid out to investors.

Here is what the data shows:

• Year-to-Date (YTD): The price return is approximately -0.20%, while the total return is approximately 2.70%.

• One Year: The price return is approximately -28.39%, while the total return is approximately 3.64%.

• Three Year: The price return is approximately 1.83%, while the total return is approximately 14.71%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was $22.90, and the current price is $22.83.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 3.87%. These payments usually happen monthly, with the most common payout day being Monday. Over the last 12 months, there were 12 distributions.

When looking at an ETF, remember that a high distribution yield is not the same as total return. Total return is the more complete measurement of how much value an investment has provided over time.

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

Pros

• The ETF has a high income rating grade of "A."

• The total return figures over one, three, and five years are all positive.

Cons

• The share-price return (price return) has been negative for both the year-to-date period and the one-year period.

Beginner takeaway

When studying IBTG, notice the difference between the share price and the total return. While the share price has seen some declines, the total return remains positive because it includes the cash distributions paid out to investors. Always look at total return to get a fuller picture of an ETF's performance.