MXI: ISHARES GLOBAL MATERIALS ETF
ETF Education Report: ISHARES GLOBAL MATERIALS ETF (MXI)
What this ETF is trying to do
The ISHARES GLOBAL MATERIALS ETF (ticker: MXI) is an exchange-traded fund that focuses on the materials sector. It holds a variety of companies involved in different parts of the materials industry. Based on its Top Holdings, the fund includes large companies like BHP Group Ltd, Linde PLC, and Newmont Corp. Because it holds many different companies, it provides exposure to a broad group of businesses rather than just one.
What the numbers show
When looking at how an ETF performs, 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.
• Total Return: This includes both the share price change and any cash distributions (dividends) paid out.
For MXI, the numbers show growth over different time periods:
• Year-to-Date (YTD): The price return is approximately 13.53%, while the total return is approximately 14.67%.
• One Year: The price return was approximately 18.07%, and the total return was approximately 20.13%.
• Three Years: The price return was approximately 41.92%, and the total return was approximately 53.39%.
To give you an idea of price movement, the estimated price from roughly one year ago was $92.93. The current price is $109.72.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. MXI has a distribution yield of approximately 1.67%. This means the cash distributed is about 1.67% of the ETF's price. Over the last 12 months, there were two payouts. It is important to remember that a distribution yield is not the same as total return, and receiving cash distributions does not guarantee that the share price will stay the same.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly. Some investors worry about this because if the value of the fund's assets drops, the share price often follows. For MXI, the erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The fund has shown positive price returns and total returns over the last year and three years.
• The data shows no detected price erosion.
Cons
• Distributions are described as "irregular" or "less frequent," meaning they do not happen on a set schedule.
• The list of holdings provided is only a partial list of the 117 total companies held in the fund.
Beginner takeaway
When studying MXI, notice that the total return is higher than the price return. This happens because the total return accounts for the extra value gained from cash distributions. Always remember that while distributions provide cash, they are separate from the movement of the share price itself.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | BHP GROUP LTD | n/a | 6.87% |
| 2 | LINDE PLC | LIN | 6.85% |
| 3 | NEWMONT CORP | NEM | 4.25% |
| 4 | AIR LIQUIDE SA | n/a | 3.91% |
| 5 | RIO TINTO PLC ORDINARY SHARES | n/a | 3.29% |
| 6 | AGNICO EAGLE MINES LTD | n/a | 3.20% |
| 7 | FREEPORT-MCMORAN INC | FCX | 3.20% |
| 8 | SHERWIN-WILLIAMS CO | SHW | 2.37% |
| 9 | GLENCORE PLC | n/a | 2.36% |
| 10 | SHIN-ETSU CHEMICAL CO LTD | n/a | 2.33% |