ETF Education Report: Voya Infrastructure Industrials and Materials Fund (IDE)

What this ETF is trying to do

The Voya Infrastructure Industrials and Materials Fund (ticker: IDE) is an exchange-traded fund (ETF). While the specific holdings are not listed in this report, the name suggests it focuses on companies involved in infrastructure, industrial work, and materials.

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 measures only the change in the share price.

• Total Return: This includes both the share price changes and the money paid out to investors through distributions.

For IDE, the numbers show a difference between these two:

• Year-to-Date (YTD): The price return is approximately -0.24%, but the total return is about 5.87%.

• One Year: The price return was approximately 16.33%, while the total return was about 9.87%.

• Three Years: The price return was approximately 28.48%, and the total return was about 76.72%.

An estimated price from roughly one year ago was $12.25, and the current price is $12.27.

Income and distribution explanation

This ETF has a distribution yield of approximately 9.78%. This means the fund pays out a significant amount of cash relative to its price. These distributions usually happen monthly, with 12 payments made over the last year. Most of these payments have occurred on Mondays.

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

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. StockValueFinder uses an erosion-risk score to help measure this risk.

For IDE, the erosion 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. This suggests the fund's price movement has not triggered major erosion warnings.

Pros

• The fund provides a high distribution yield for those looking for regular cash payments.

• The three-year total return has been quite high at approximately 76.72%.

Cons

• The year-to-date price return is slightly negative, meaning the share price itself has dipped recently.

• High yields can sometimes be misleading if the share price is not stable, though this fund's erosion score currently looks stable.

Beginner takeaway

When studying IDE, notice the gap between price return and total return. This gap exists because the fund pays out regular distributions. While the share price might move up or down on its own, the total return tells a fuller story by including those cash payments. Always look at both numbers to understand how an ETF is performing.