Understanding the Morgan Stanley India Investment Fund Inc (IIF)

What this ETF is trying to do

The Morgan Stanley India Investment Fund Inc (ticker: IIF) is an ETF that focuses on investments in India. Investors often look at funds like this to get exposure to the Indian market.

What the numbers show

The data shows different ways the fund has performed over various time periods. It is important to look at both "price return" (how the share price changed) and "total return" (which includes distributions).

• Year-to-Date (YTD): The YTD price return is approximately -15.69%. The YTD total return is also approximately -15.69%.

• One Year: The one-year price return was approximately -20.59%. However, the one-year total return was approximately -14.41%.

• Three Year: The three-year price return was approximately -5.56%, while the three-year total return was approximately 28.65%.

• Five Year: The five-year total return was approximately 28.20%.

To give you an idea of the price change, the current price is $21.06. The estimated price from roughly one year ago was approximately $26.52.

Income and distribution explanation

This ETF has a distribution yield of approximately 9.43%. This number describes the cash distributions relative to the ETF price. The trailing distributions are approximately $1.99.

It is important to note that the distribution frequency is listed as "Irregular / less frequent," with only one payout counted in the last 12 months. When looking at income, remember that a high distribution yield does not mean an investor earned that same percentage as their total return.

NAV erosion explanation

The fund has an erosion-risk score of 55, which is labeled as "Moderate price erosion." This means there has been some moderate decline in 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 declined in certain periods, we cannot use this to prove that the Net Asset Value (NAV) itself has declined.

Pros

• Strong Long-Term Total Returns: Over a three-year and five-year period, the total returns have been positive (28.65% and 28.20% respectively), even though the share price itself has seen declines.

• High Distribution Yield: The fund offers a distribution yield of approximately 9.43%.

Cons

• Recent Price Declines: The fund has experienced negative price returns year-to-date and over the last year.

• Irregular Income: The distributions are not frequent, occurring irregularly rather than on a steady schedule.

• Moderate Erosion Risk: The fund shows a moderate risk of price erosion.

Beginner takeaway

When researching IIF, it is helpful to distinguish between the share price and the total return. While the share price has dropped recently, the total return (which includes distributions) tells a different story over longer periods. Also, keep in mind that high yields can sometimes be accompanied by falling share prices.