ISHP: FIRST TRUST S-NETWORK E-COMMERCE ETF
ETF Education Report: FIRST TRUST S-NETWORK E-COMMERCE ETF (ISHP)
What this ETF is trying to do
The FIRST TRUST S-NETWORK E-COMMERCE ETF (ticker: ISHP) is an exchange-traded fund designed to track companies involved in e-commerce. Based on its top holdings, the fund includes various businesses like Wayfair Inc, Reddit Inc, DoorDash Inc, and Best Buy Co Inc. These holdings represent a small slice of the total 64 companies held by the fund.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For ISHP, the one-year price return was approximately -18.36%. The year-to-date (YTD) price return was approximately -11.08%.
• Total Return: This includes the share price change plus any cash distributions paid out. The one-year total return was approximately -17.49%, and the YTD total return was approximately -10.88%.
Looking further back, the three-year price return was approximately 37.20%, and the three-year total return was approximately 41.01%. To give you an idea of recent price movement, the current price is $34.80, while the estimated price from roughly one year ago was approximately $42.62.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. ISHP has a distribution yield of approximately 1.16%. This means the cash paid out is about 1.16% of the ETF's price. Over the last 12 months, there were 3 payouts, and the frequency is described as irregular or less frequent. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price does not always mean the NAV is dropping, StockValueFinder uses an "erosion-risk score" to measure this risk. ISHP has an erosion score of 55, which is labeled as "moderate price erosion." This is a measurement of risk, not a guarantee that the fund's value has collapsed.
Pros
• The ETF has shown strong total returns over a three-year period (approximately 41.01%).
• It provides exposure to a variety of different e-commerce companies.
Cons
• The ETF has experienced a share-price decline over the last year and year-to-date.
• The erosion-risk score indicates moderate price erosion.
Beginner takeaway
When studying ISHP, notice the difference between the share price movement and the total return. While the fund has had a difficult year in terms of price, its three-year history shows different results. Always remember that high yields or past performance do not guarantee future results, and it is helpful to look at both price returns and total returns to see the full picture.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ALLEGRO.EU SA ORDINARY SHARES | n/a | 2.31% |
| 2 | WAYFAIR INC CLASS A | W | 2.16% |
| 3 | REDDIT INC CLASS A SHARES | RDDT | 2.14% |
| 4 | WILLIAMS-SONOMA INC | WSM | 2.08% |
| 5 | DOORDASH INC ORDINARY SHARES CLASS A | DASH | 2.04% |
| 6 | BEST BUY CO INC | BBY | 2.01% |
| 7 | EBAY INC | EBAY | 2.00% |
| 8 | PINTEREST INC CLASS A | PINS | 2.00% |
| 9 | ALPHABET INC CLASS A | GOOGL | 1.92% |
| 10 | EXPEDIA GROUP INC | EXPE | 1.90% |