Share-split context: A forward split was recorded on Mar 7, 2024 with coefficient 3. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: iShares U.S. Consumer Staples ETF (IYK)

The iShares U.S. Consumer Staples ETF (IYK) is designed to invest in companies that produce essential items people buy regardless of the economy, such as food, beverages, and household goods. Based on the data, it provides a combination of steady price growth and regular cash distributions.

What this ETF is trying to do

IYK focuses on the "consumer staples" sector. This means it holds companies that sell necessary products. According to the Top Holdings list (updated October 8, 2026), the fund is heavily invested in well-known brands. Its largest holdings include Coca-Cola Co (13.19%), Procter & Gamble Co (12.91%), and Philip Morris International Inc (11.21%).

What the numbers show

Because this ETF has a history of share splits, we look at split-adjusted returns to see how it has performed:

• Year-to-Date (YTD): The price return is 7.43%, while the total return is 9.19%.

• One Year: The price return is 5.58%, while the total return is 8.42%.

• Three Year: The price return is 19.42%, while the total return is 28.95%.

Note on Share Splits: IYK had a "forward split" on March 7, 2024, with a coefficient of 3. In a forward split, each old share became multiple new shares, and the price per share fell proportionally. This change does not create a gain or loss; it simply changes how the ownership is divided.

Income and Distribution Explanation

IYK pays distributions usually every quarter. Over the last 12 months, it has made 4 payments.

• Distribution Yield: 2.62%

• Trailing Distributions: $1.89 per share

It is important to remember that distribution yield is not the same as total return. While the yield shows the cash paid out relative to the price, the total return includes both that cash and the change in the share price.

NAV Erosion Explanation

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.

However, looking at price-based evidence, the ETF has an erosion score of 100, which is labeled as "good." The data states that no price erosion was detected, and the severe erosion-risk flag is false.

Pros

• Positive Growth: Both price returns and total returns have been positive over the short and long term.

• Stability: It invests in essential goods through large, established companies.

• Regular Income: It provides consistent quarterly distributions.

Cons

• Moderate Yield: The distribution yield is relatively low compared to specialized high-income funds.

• Concentration: A large portion of the fund is held in just a few companies (the top three make up over 37% of the fund).

Beginner Takeaway

IYK is a fund for investors who want exposure to the basic goods people use every day. It has shown a history of increasing both its share price and its total value over the last three years. While it provides regular income, the primary goal appears to be a mix of steady growth and modest distributions.