What this ETF is trying to do

The ISHARES IBONDS DEC 2029 TERM TREASURY ETF (IBTJ) is an exchange-traded fund. Based on its name, it focuses on Treasury securities that reach a specific end date in December 2029.

What the numbers show

When looking at an ETF, it is important to know the difference between price return and total return. Price return only tracks how much the share price changes. Total return includes both the price change and any cash payments (distributions) made to investors.

Here is what the data shows for IBTJ:

• Year-to-Date (YTD): The price return is approximately -3.39%. However, the total return is -0.63%.

• One Year: The price return is approximately -3.31%, while the total return is 0.36%.

• Three Year: The price return is approximately 1.58%, while the total return is 13.92%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was $21.92, and the current price is $21.20.

Income and distribution explanation

This ETF provides cash payments to investors, known as distributions. The distribution yield is approximately 3.82%. This number describes the cash payments relative to the current ETF price. These distributions usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. You must look at the "total return" figure to see how the price changes and distributions worked together.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. StockValueFinder uses an erosion-risk score to measure this risk.

IBTJ has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag for this ETF.

Pros

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

• The three-year total return is positive at approximately 13.92%.

Cons

• The year-to-date price return is negative, showing a share-price decline.

• The five-year total return is approximately -1.21%.

Beginner takeaway

When studying IBTJ, notice how the total return is often higher than the price return. This happens because the cash distributions help offset some of the share-price declines. Always check both numbers to understand how an ETF is performing overall.