OEFA: ALPS | O'SHARES INTERNATIONAL DEVELOPED QUALITY DIVIDEND ETF
ETF Education Report: OEFA
What this ETF is trying to do
The ALPS | O'SHARES INTERNATIONAL DEVELOPED QUALITY DIVIDEND ETF (ticker: OEFA) is an exchange-traded fund. Based on its name, it focuses on international companies in developed markets that are known for "quality" and paying dividends. This ETF holds 54 different companies.
Top Holdings
The following is a partial list of the largest companies held by this ETF. Please note that holdings can change over time:
• ASML HOLDING NV (4.58%)
• NOVARTIS AG REGISTERED SHARES (3.05%)
• ASTRAZENECA PLC (3.02%)
• ROYAL BANK OF CANADA (3.00%)
• SAP SE (2.91%)
• ROCHE HOLDING AG ORDINARY SHARES NEW (2.83%)
• SCHNEIDER ELECTRIC SE (2.73%)
• ABB LTD (2.68%)
• SAFRAN SA (2.55%)
• IBERDROLA SA (2.54%)
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 paid out to investors).
• Year-to-Date (YTD): The price return is approximately 2.98%, while the total return is approximately 4.47%.
• One-Year: The price return was approximately 1.25%, while the total return was approximately 3.01%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $33.96, compared to the current price of $34.38.
Income and distribution explanation
This ETF pays out cash to investors, which is called a distribution. The distribution yield is 1.66%. This number describes the cash paid out relative to the ETF's price. It is important to remember that a distribution yield is not the same as total return.
The ETF usually pays these distributions quarterly. Over the last 12 months, there were 4 payouts.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be related to this, they are not the same thing.
For OEFA, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• The ETF shows a positive total return for both the year-to-date period and the last one year.
• The erosion-risk measurements suggest a stable price trend.
Cons
• The income rating grade is a "D," which reflects the specific income score of 58.
• Total return data for the three-year period was not supplied.
Beginner takeaway
When studying OEFA, remember that the share price and the cash distributions (yield) are two different things. Total return is the most complete way to see how the investment performed because it combines both the price movement and the cash paid out. Always look at the total return rather than just the dividend yield to get a full picture.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ASML HOLDING NV | n/a | 4.58% |
| 2 | NOVARTIS AG REGISTERED SHARES | n/a | 3.05% |
| 3 | ASTRAZENECA PLC | AZN | 3.02% |
| 4 | ROYAL BANK OF CANADA | RY | 3.00% |
| 5 | SAP SE | n/a | 2.91% |
| 6 | ROCHE HOLDING AG ORDINARY SHARES NEW | n/a | 2.83% |
| 7 | SCHNEIDER ELECTRIC SE | n/a | 2.73% |
| 8 | ABB LTD | n/a | 2.68% |
| 9 | SAFRAN SA | n/a | 2.55% |
| 10 | IBERDROLA SA | n/a | 2.54% |