ETF Education Report: ISHARES U.S. DIGITAL INFRASTRUCTURE AND REAL ESTATE ETF (IDGT)

What this ETF is trying to do

The ISHARES U.S. DIGITAL INFRASTRUCTURE AND REAL ESTATE ETF (ticker: IDGT) focuses on companies involved in digital infrastructure and real estate. This includes businesses that support the technology we use every day. The fund holds a total of 29 different companies.

Top Holdings

The following are the top holdings in this fund. Please note that this is a partial list of the largest companies held:

• EQUINIX INC (8.93%)

• AMERICAN TOWER CORP (8.49%)

• FASTLY INC CLASS A (8.11%)

• SBA COMMUNICATIONS CORP CLASS A (6.51%)

• UNITI GROUP INC (5.26%)

• CROWN CASTLE INC (5.02%)

• NETAPP INC (4.90%)

• SUPER MICRO COMPUTER INC (4.72%)

• ARISTA NETWORKS INC (4.68%)

• EXTREME NETWORKS INC (4.53%)

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 changed. Total return includes both the price change and any cash distributions paid out.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately 39.24%, while the total return is approximately 39.89%.

• One-Year: The price return was approximately 35.46%, and the total return was approximately 36.74%.

• Three-Year: The price return was approximately 100.59%, and the total return was approximately 107.69%.

To visualize this, the estimated price from roughly one year ago was $87.37. The current price is $118.35.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The current distribution yield is approximately 0.78%. This means the cash paid out is about 0.78% of the ETF's price. These payments usually happen quarterly, and there were 4 payments in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. It is important to distinguish between a falling share price and NAV erosion. In this case, the erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The fund has shown positive price returns and total returns over the one-year and three-year periods.

• The income rating grade is an "A," with a score of 83.

Cons

• The distribution yield (0.78%) is relatively low compared to some other types of income-focused funds.

Beginner takeaway

When studying IDGT, remember that total return is the most complete way to see how much the investment grew because it includes both price changes and cash payments. While this fund provides some income through distributions, the primary growth seen in the recent data comes from the increase in the share price.