NFRA: FLEXSHARES STOXX GLOBAL BROAD INFRASTRUCTURE INDEX FUND
What this ETF is trying to do
The FLEXSHARES STOXX GLOBAL BROAD INFRASTRUCTURE INDEX FUND (ticker: NFRA) is an ETF that focuses on global infrastructure. This means it invests in companies that provide essential services, such as transportation and utilities.
Because the list of holdings provided is only a partial list, we can only see some of the companies the fund owns. Some of its Top Holdings include:
• Canadian Pacific Kansas City Ltd (3.72%)
• Softbank Group Corp (3.64%)
• Canadian National Railway Co (3.33%)
• Deutsche Telekom AG (2.95%)
• Deutsche Post AG (2.94%)
• Verizon Communications Inc (2.72%)
• NextEra Energy Inc (2.48%)
• Union Pacific Corp (2.38%)
• Iberdrola SA (2.29%)
• AT&T Inc (2.25%)
Please remember that holdings can change over time.
What the numbers show
The current price of one share is $62.62. An estimated price from roughly one year ago was $62.98.
When looking at how this ETF has performed, it is important to look at two different things: price return (how much the share price changed) and total return (how much the price changed plus any cash paid out).
• Year-to-Date (YTD): The price return is approximately 3.49%, while the total return is approximately 5.24%.
• One Year: The one-year price return was approximately -0.58%. However, the one-year total return was approximately 5.53%.
• Three Years: The three-year price return was approximately 30.73%, and the three-year total return was approximately 46.86%.
Income and distribution explanation
This ETF provides cash payments to investors, known as distributions. The distribution yield is approximately 5.91%. This means the amount of cash paid out is about 5.91% of the ETF's price. Over the last year, the trailing distributions were $3.70 per share. These payments usually happen four times a year (quarterly).
It is important to remember that a high distribution yield does not mean you earned that same amount as your total return. You must look at the total return figure to see the full picture of how much value was gained or lost.
NAV erosion explanation
"NAV erosion" refers to a decline in the actual value of the assets held within the ETF. For this fund, the erosion-risk score is 94, which is labeled as "Stable / sideways." The severity of this risk is described as "good." There is no severe erosion-risk flag for this ETF.
Pros
• The ETF has shown positive total returns over the last year and the last three years.
• It offers a distribution yield of approximately 5.91%.
• The erosion-risk measurements suggest the fund is currently stable.
Cons
• The one-year price return was slightly negative at approximately -0.58%.
• Only a partial list of holdings is available, so you cannot see every company in the fund.
Beginner takeaway
When looking at NFRA, notice the difference between the share price and the total return. Even though the share price went down slightly over the last year, the total return was positive because of the cash distributions. While high yields can provide income, always check the total return to see how the investment is performing overall.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | CANADIAN PACIFIC KANSAS CITY LTD | n/a | 3.72% |
| 2 | SOFTBANK GROUP CORP | n/a | 3.64% |
| 3 | CANADIAN NATIONAL RAILWAY CO | n/a | 3.33% |
| 4 | DEUTSCHE TELEKOM AG | n/a | 2.95% |
| 5 | DEUTSCHE POST AG | n/a | 2.94% |
| 6 | VERIZON COMMUNICATIONS INC | VZ | 2.72% |
| 7 | NEXTERA ENERGY INC | NEE | 2.48% |
| 8 | UNION PACIFIC CORP | UNP | 2.38% |
| 9 | IBERDROLA SA | n/a | 2.29% |
| 10 | AT&T INC | T | 2.25% |