Understanding the Voya Global Equity Dividend and Premium Opportunity Fund (IGD)

What this ETF is trying to do

The Voya Global Equity Dividend and Premium Opportunity Fund (ticker: IGD) is an exchange-traded fund (ETF). While the specific investment strategy details are not listed in the holdings, this fund is categorized as an ETF on the NYSE.

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 how much the share price has changed.

• Total Return: This includes both the change in share price *and* the money paid out through distributions.

For IGD, the numbers show:

• Year-to-Date (YTD): The price return is approximately 11.01%, while the total return is higher at approximately 18.52%.

• One Year: The price return was about 6.01%, and the total return was approximately 17.13%.

• Three Years: The price return was about 26.75%, and the total return was approximately 72.74%.

To visualize the price change, we can look at an estimated starting point. The current price is $6.35. An estimated price from roughly one year ago was approximately $5.99.

Income and distribution explanation

This ETF focuses on providing cash to investors through distributions. The distribution yield is approximately 9.45%. This number describes the cash payments relative to the ETF's price.

The fund typically pays out money monthly, with 12 payments recorded over the last year. Based on the data, these payments often occur on Mondays. It is important to remember that a high distribution yield does not guarantee the same level of total return, and distributions are separate from the share price.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Investors often watch this because they want to ensure their original investment (the principal) stays stable while they collect income.

For IGD, the erosion-risk score is 100, and the label indicates "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• Higher Total Returns: The total return figures are significantly higher than the price return figures, showing the impact of distributions.

• Consistent Income: The fund has a high income rating grade of "A."

Cons

• Limited Holding Data: There are currently no top holdings listed in the provided data to show exactly which companies the fund invests in.

Beginner takeaway

When studying IGD, remember that the price of a share and the cash payments (distributions) are two different things. This fund has shown higher total returns than price returns, meaning the distributions have added significant value to the overall performance. Always look at both numbers to get the full picture of how an ETF is performing.