What this ETF is trying to do

The ISHARES CYBERSECURITY AND TECH ETF (ticker: IHAK) focuses on the cybersecurity and technology sector. It holds a variety of companies that work in these fields. Based on the provided data, the fund's Top Holdings include:

• Tenable Holdings Inc (5.17%)

• Varonis Systems Inc (5.10%)

• Qualys Inc (5.07%)

• Palo Alto Networks Inc (4.46%)

• Okta Inc Class A (4.32%)

• SentinelOne Inc Class A (4.27%)

• Netskope Inc Ordinary Shares Class A (4.25%)

• Blackberry Ltd (4.19%)

• Crowdstrike Holdings Inc Class A (4.12%)

• Fortinet Inc (4.08%)

Please note that this is a partial list of the holdings, and companies in an ETF can change over time.

What the numbers show

The data shows that this ETF has experienced significant share-price growth recently. The current price is $66.76.

When looking at how the price has changed:

• One-Year Price Return: The share price increased by approximately 35.31% over the last year.

• YTD (Year-to-Date) Price Return: Since the start of this year, the share price has risen by approximately 38.74%.

• Three-Year Price Return: Over the last three years, the share price has grown by approximately 75.78%.

It is important to distinguish between "price return" and "total return." Price return only tracks how much the share price itself moved. Total return includes both the price change and any cash distributions paid out. For this ETF, the total returns are slightly higher than the price returns:

• One-Year Total Return: Approximately 35.43%

• YTD Total Return: Approximately 38.75%

• Three-Year Total Return: Approximately 76.47%

To visualize the price change, we can look at an estimated price from roughly one year ago, which was approximately $49.34. If you had invested $10,000 into this ETF one year ago, your investment would have grown to approximately $13,531 based on the share-price movement alone, before considering any distributions.

Income and distribution explanation

This ETF provides a distribution yield of approximately 0.07%. This represents the cash distributions relative to the ETF price. The data shows that there were 2 payouts over the last 12 months, and the frequency is described as irregular or less frequent.

It is important to remember that a distribution yield is not the same as a total return. While distributions provide cash income, they do not guarantee that your original investment (the principal) will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the ETF decreases significantly. When an ETF's share price falls sharply, it can sometimes be a sign of this type of risk.

However, for IHAK, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF. This means that, based on the provided measurements, the fund does not show signs of substantial price deterioration related to erosion risk.

Pros

• The ETF has shown strong positive price returns over the one-year, year-to-date, and three-year periods.

• The total return figures are higher than the price return figures, showing the impact of distributions.

Cons

• The distribution yield is quite low (approximately 0.07%), which may not meet the needs of investors looking for high regular income.

• The distribution frequency is irregular.

Beginner takeaway

This ETF tracks companies in the cybersecurity and tech space. It has seen significant growth in its share price over the last year and three years. When reviewing ETFs, always remember to look at both the price return (the change in share price) and the total return (which includes cash distributions) to get a full picture of performance.