Share-split context: A forward split was recorded on Aug 31, 2017 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

What this ETF is trying to do

The iShares International Treasury Bond ETF (ticker: IGOV) is an exchange-traded fund designed to provide exposure to international treasury bonds. This means the fund invests in government debt from countries outside of the United States.

What the numbers show

The performance data for IGOV shows different results depending on how you measure it. It is important to know the difference between "price return" (just the change in share price) and "total return" (the change in share price plus any distributions received).

• Year-to-Date (YTD): The YTD price return is approximately -4.70%. For this period, the total return is also approximately -4.70%.

• One Year: The one-year price return is approximately -5.92%. However, the one-year total return is slightly higher at approximately -4.59%.

• Three Year: Over the last three years, the price return is approximately 7.33%, while the total return is higher at approximately 9.49%.

• Five Year: The five-year total return is approximately -20.49%.

Because this ETF has a history of forward splits, we use split-adjusted returns to look at performance. In a forward split, one old share becomes multiple new shares, which causes the per-share price to fall proportionally. This change does not create a gain or a loss for the investor.

Income and distribution explanation

IGOV provides cash distributions to investors. The current distribution yield is approximately 1.48%. This number describes the cash distributions relative to the ETF's current price of $39.70.

The distribution frequency is described as "irregular or less frequent," with one payout recorded in the last 12 months. It is important to remember that a distribution yield is not the same as a total return.

NAV erosion explanation

The fund has an erosion-risk score of 75, which is labeled as "mild price erosion." This indicates a mild risk regarding the movement of the share price.

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. While the share price has seen some declines, we cannot use this data to prove whether the Net Asset Value (NAV) itself has declined.

Pros

• The three-year total return is positive at approximately 9.49%.

• The fund has an income rating grade of "B."

Cons

• The one-year and year-to-date total returns have been negative.

• The five-year total return is approximately -20.49%.

• The distribution frequency is irregular.

Beginner takeaway

When looking at IGOV, it is helpful to distinguish between the share price and the total return. While the share price has faced some recent declines, the total return figures include the impact of distributions. Investors should also note that while there is a "mild" price erosion score, this is a measurement of price trends and does not confirm what is happening to the fund's actual NAV.