What this ETF is trying to do

Mexico Fund Inc (MXF) is an ETF that focuses on investments related to Mexico. It is designed for investors who want exposure to the Mexican market through a single fund.

What the numbers show

The current price of MXF is $20.05. For comparison, the estimated price from roughly one year ago was $18.86.

When looking at performance over the last year, there are two different ways to see the results:

• Price Return: This measures only the change in the share price. Over the last year, the price return was 6.31%.

• Total Return: This measures the overall return, which includes both the share-price change and any distributions paid out. The total return for the last year was 13.08%.

Over a longer period, the three-year total return was 55.90%, while the five-year total return was 77.68%. For this current year (YTD), the share-price change is -0.45%, but the total return is 4.50%.

Income and distribution explanation

MXF provides distributions, which are payments made to investors. The distribution yield is 6.48%. This means the fund paid out $1.30 in trailing distributions over the last 12 months. These payments usually happen on a quarterly basis (four times a year). It is important for new investors to know that a high distribution yield does not automatically mean an investor earned that full percentage as their total return.

NAV erosion explanation

NAV erosion happens when the value of the underlying assets in a fund drops over time, which can cause the share price to fall even if distributions are paid out. StockValueFinder uses an erosion-risk score to measure this risk.

MXF has an erosion score of 100, which is labeled as "good." The data shows "No price erosion detected," and there is no severe erosion-risk flag for this fund. This suggests that the fund's core value has remained stable according to these measurements.

Pros

• Positive total returns over one, three, and five years.

• A good erosion score with no price erosion detected.

• Regular quarterly distributions.

Cons

• The share-price return for the current year (YTD) is negative at -0.45%.

• No specific top holdings were provided in the data to review.

Beginner takeaway

When researching MXF, it is helpful to look at both the price return and the total return. The price return tells you how much the share price moved by itself. The total return gives a bigger picture because it includes the cash distributions the fund paid out. Understanding the difference between these two numbers helps you see the full story of how the ETF has performed over time.