ETF Education Report: ISHARES LIFEPATH TARGET DATE 2065 ETF (ITDI)

What this ETF is trying to do

The ISHARES LIFEPATH TARGET DATE 2065 ETF (ITDI) is an exchange-traded fund designed for long-term investors. Target date funds generally aim to manage a mix of investments based on a specific year, in this case, 2065. This ETF holds several different types of funds to provide exposure to various markets.

What the numbers show

The current price of ITDI is $43.26. Looking at how the price has moved, we can see some growth:

• Year-to-Date (YTD) Price Return: The share price has increased by approximately 14.99% since the start of the year.

• One-Year Price Return: The share price has increased by approximately 17.02% over the last year.

It is important to know that "price return" only tracks the change in the share price itself. When we look at total return, which includes the impact of distributions, the numbers are slightly different:

• YTD Total Return: Approximately 14.99%.

• One-Year Total Return: Approximately 18.91%.

To visualize the price change, if you had invested in this ETF at its estimated price from roughly one year ago ($36.96), the share price has grown to its current level of $43.26.

Income and distribution explanation

This ETF provides some cash to investors through distributions. The distribution yield is approximately 1.42%. This number describes the cash paid out relative to the ETF's price. The trailing distributions were $0.61 per share. These payments happen irregularly, with one payment recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. For this ETF, the erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this fund.

Top Holdings

The ETF holds a variety of assets. Here are the top holdings:

• ISHARES RUSSELL 1000 ETF (57.41%)

• ISHARES CORE MSCI INTL DEV MKTS ETF (24.81%)

• ISHARES CORE MSCI EMERGING MARKETS ETF (12.56%)

• ISHARES RUSSELL 2000 ETF (3.21%)

• ISHARES 10& YEAR INVMT GRD CORP BD ETF (0.96%)

• ISHARES CORE US REIT ETF (0.90%)

*Note: Holdings can change over time.*

Pros

• The ETF has shown positive price returns over the last year and year-to-date.

• The erosion-risk measurement is considered "good."

Cons

• The distribution frequency is irregular and less frequent.

• Total return data for the three-year period was not supplied.

Beginner takeaway

When looking at ITDI, it is helpful to distinguish between price return (how much the share price went up) and total return (the price change plus distributions). This ETF has shown growth in both areas over the past year. While it pays a distribution, the yield is relatively low at 1.42%.