ETF Education Report: iShares Core MSCI Total International Stock ETF (IXUS)

What this ETF is trying to do

The iShares Core MSCI Total International Stock ETF (ticker: IXUS) is an exchange-traded fund designed to provide exposure to international stocks. This means it holds many different companies from various countries outside of the United States.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return (how much the share price changed) and total return (the price change plus any cash payments received).

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately 13.54%, while the total return is approximately 14.99%.

• One-Year: The price return was approximately 14.47%, and the total return was approximately 18.13%.

• Three-Year: The price return was approximately 63.21%, and the total return was approximately 79.58%.

• Five-Year: The five-year total return was 58.28%.

To give you an idea of the price movement, the current price is $96.10. The estimated price from roughly one year ago was approximately $83.95.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The distribution yield is approximately 2.92%. This number describes the cash payments relative to the current ETF price. Over the last 12 months, there were two payouts. The frequency of these payments is described as irregular or less frequent.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. For this ETF, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this fund.

Top Holdings

The following are some of the top holdings in this ETF. Please note that this is a partial list and holdings can change over time:

• Royal Bank of Canada (0.54%)

• Shopify Inc. (0.45%)

• The Toronto-Dominion Bank (0.32%)

• Enbridge Inc (0.30%)

• Spotify Technology SA (0.27%)

• Brookfield Corp (0.26%)

• PDD Holdings Inc ADR (0.24%)

• Bank of Montreal (0.23%)

• Canadian Pacific Kansas City Ltd (0.23%)

• Canadian Natural Resources Ltd (0.21%)

Pros

• The ETF shows positive price returns and total returns across one, three, and five-year periods.

• It has a high income rating grade of "A."

Cons

• The distribution frequency is irregular, meaning payments do not happen on a set, predictable schedule.

Beginner takeaway

When studying IXUS, it is helpful to notice that the total return is higher than the price return. This happens because total return includes the cash distributions paid out to investors. Always remember that a distribution yield tells you about cash payments, but it is not the same thing as your total investment return.