ETF Education Report: Voya Global Advantage and Premium Opportunity Fund (IGA)

What this ETF is trying to do

The Voya Global Advantage and Premium Opportunity Fund (ticker: IGA) is an exchange-traded fund (ETF) traded on the NYSE. While the specific investment strategy is not detailed in the provided data, ETFs are tools used by investors to access a collection of different assets through a single ticker symbol.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only the change in the share price. For IGA, the one-year price return was approximately 4.35%. The three-year price return was approximately 22.16%.

• Total Return: This is a broader measure that includes both the share price changes and the money paid out to investors through distributions. For IGA, the one-year total return was approximately 15.65%, and the three-year total return was approximately 69.07%.

The current price of IGA is $10.31. Based on an estimated price from roughly one year ago of $9.88, the share price has increased over that period.

Income and distribution explanation

This ETF provides regular cash payments, known as distributions. The distribution yield is approximately 9.89%. This number describes the cash payments relative to the current ETF price. IGA typically pays these out monthly, with 12 distributions recorded over the last year.

It is important to remember that a high distribution yield does not mean an investor earned that exact percentage as their total return. Total return is the more complete picture of how the investment performed.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Investors often watch for this because they want to ensure their original investment (the principal) stays stable while they collect income.

For IGA, 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 fund has shown positive total returns over the one-year, three-year, and five-year periods.

• It provides a high distribution yield with a frequent (usually monthly) payout schedule.

Cons

• The price return is lower than the total return, meaning a large portion of the fund's performance comes from its distributions rather than just the share price going up.

• No top holdings were provided in the data to show exactly what companies the fund owns.

Beginner takeaway

When looking at funds like IGA, always distinguish between the share price movement and the total return. A fund can have a modest increase in share price but a much higher total return if it pays out significant cash distributions. High yields can be attractive for income, but checking the erosion-risk score helps you understand how stable the fund's value has been.