ETF Education Report: New Ireland Fund Inc (IRL)

What this ETF is trying to do

New Ireland Fund Inc (ticker: IRL) is an Exchange Traded Fund (ETF) traded on the NYSE. While the specific investment goals are not listed in the provided data, ETFs generally aim to track a specific index or group of assets.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how much the share price changed. Total return includes those price changes plus any distributions (cash payments) made to investors.

Here is what the data shows for IRL:

• Year-to-Date (YTD): The YTD price return is approximately 11.34%. The YTD total return is also approximately 11.34%.

• One Year: The one-year price return was approximately 0.77%. However, the one-year total return was higher at approximately 2.93%.

• Three Years: Over three years, the price return was approximately 16.57%, while the three-year total return was much higher at approximately 49.48%.

To look at the share price movement, we can use an estimated price from roughly one year ago, which was approximately $10.33. The current price is $10.41. If you had invested $10,000 into the share price alone one year ago, your investment would have grown to approximately $10,077 based on the 0.77% price return.

Income and distribution explanation

This ETF has a distribution yield of approximately 1.92%. This number describes the cash distributions relative to the ETF's price. The data shows that there was one distribution in the last 12 months, and the frequency is described as "irregular" or "less frequent."

It is important to remember that receiving cash distributions does not guarantee that your original investment (your principal) will stay the same value. High yields can sometimes be misleading if the share price is also falling.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. In this report, the erosion-risk score is 100, and the label is "No price erosion detected." The erosion severity is listed as "good," and there is no severe erosion-risk flag present. This means that, based on these specific measurements, the fund does not show signs of substantial price deterioration related to erosion risks.

Pros

• The three-year total return shows significant growth compared to the three-year price return.

• Current data indicates no detected price erosion.

Cons

• Distributions are infrequent and irregular.

• The one-year price return is relatively low at approximately 0.77%.

Beginner takeaway

When looking at an ETF, always check both the price return and the total return. The total return gives a more complete picture because it includes the cash payments you might receive. Also, keep an eye on erosion-risk scores to understand how stable the fund's value might be. This report is for educational purposes only and is not financial advice.