ILOW: AB INTERNATIONAL LOW VOLATILITY EQUITY ETF
AB INTERNATIONAL LOW VOLATILITY EQUITY ETF (ILOW)
The AB International Low Volatility Equity ETF (ticker: ILOW) is an exchange-traded fund designed to invest in international stocks that typically experience less price movement. This ETF focuses on providing exposure to global companies while aiming for lower volatility.
What this ETF is trying to do
This fund seeks to invest in international equities. By focusing on "low volatility," the strategy generally looks for stocks that do not swing up and down as wildly as the broader market. The fund holds 100 total holdings, which include large international companies.
Top Holdings
Because the provided list is a partial view of the fund, these are the largest holdings currently identified:
• ASML Holding NV (3.02%)
• Schneider Electric SE (2.37%)
• Oversea-Chinese Banking Corp Ltd (2.12%)
• Novartis AG Registered Shares (2.00%)
• BAE Systems PLC (1.91%)
• KBC Groupe NV (1.89%)
• Roche Holding AG (1.86%)
• Euronext NV (1.79%)
• AIB Group PLC (1.70%)
• Mitsubishi UFJ Financial Group Inc (1.66%)
*Note: Holdings can change over time.*
What the numbers show
When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes distributions).
• Year-to-Date (YTD): The YTD price return is approximately 6.67%. Since the total return for this period is also 6.67%, the price movement and total return are currently the same.
• One-Year Performance: The one-year price return was approximately 5.74%. However, the one-year total return was higher, at approximately 7.46%. This difference shows that distributions added to the overall value beyond just the share price change.
• Price Comparison: The current price is $45.43. An estimated price from roughly one year ago was approximately $42.97.
Income and distribution explanation
The ILOW ETF provides a distribution yield of approximately 1.50%. This represents the cash distributions relative to the ETF's price.
It is important to remember that a distribution yield is not the same as a total return. While distributions provide cash, they are separate from the growth of the share price itself. For this ETF, the distribution frequency is described as "irregular" or "less frequent," with one payout recorded in the last 12 months.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). 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.
Regarding price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• Positive Returns: The fund has shown positive price returns and total returns over the last year and year-to-date.
• Low Erosion Risk: Based on the supplied erosion score, there are no signs of significant price deterioration.
Cons
• Irregular Income: The distributions are not frequent, which may be a factor for those looking for steady, regular cash flow.
• Lower Yield: The distribution yield of 1.50% is relatively modest compared to some high-income funds.
Beginner takeaway
The ILOW ETF focuses on international stocks with lower price swings. While it provides some income through distributions, the total return is currently being driven by both share price increases and those distributions. Investors should note that while the fund shows no signs of price erosion, its income is paid out irregularly.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ASML HOLDING NV | n/a | 3.02% |
| 2 | n/a | n/a | 2.47% |
| 3 | SCHNEIDER ELECTRIC SE | n/a | 2.37% |
| 4 | OVERSEA-CHINESE BANKING CORP LTD | n/a | 2.12% |
| 5 | NOVARTIS AG REGISTERED SHARES | n/a | 2.00% |
| 6 | BAE SYSTEMS PLC | n/a | 1.91% |
| 7 | KBC GROUPE NV | n/a | 1.89% |
| 8 | ROCHE HOLDING AG | n/a | 1.86% |
| 9 | EURONEXT NV | n/a | 1.79% |
| 10 | AIB GROUP PLC | n/a | 1.70% |