What this ETF is trying to do

The GMO International Quality ETF (ticker: QLTI) is an exchange-traded fund designed to invest in international companies. While the specific strategy details are not provided, the fund focuses on a selection of 44 different holdings. Based on its top holdings, it includes large international companies like Taiwan Semiconductor Manufacturing Co Ltd ADR and SAP SE ADR.

What the numbers show

The current price of QLTI is $26.78. When looking at how the share price has moved, we can see both price returns and total returns. It is important to remember that price return only tracks the change in the share price, while total return includes the impact of distributions.

• Year-to-Date (YTD): The YTD price return is approximately 0.68%. The YTD total return is higher, at approximately 0.77%.

• One-Year Performance: The one-year price return is approximately 1.98%. The one-year total return is approximately 2.20%.

For comparison, the estimated price from roughly one year ago was $26.26.

Income and distribution explanation

QLTI provides a distribution yield of approximately 0.21%. This number describes the cash distributions relative to the ETF's price. The fund has a distribution frequency described as "irregular" or "less frequent," with 2 payouts recorded over the last 12 months.

Because the yield is relatively low, the income rating for this ETF is a "C" grade. Investors looking for high regular income should note that this fund's distributions are not frequent.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). 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, we can look at the erosion-risk score. QLTI has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag present. This suggests that the share price has not shown significant patterns of deterioration.

Pros

• Stable Price Trend: The erosion-risk score suggests the fund has a stable price history.

• Positive Returns: Both the price return and total return have been positive over the last year.

Cons

• Low Distribution Frequency: The distributions are irregular and occur less often than monthly or quarterly funds.

• Lower Yield: The distribution yield is quite low at approximately 0.21%.

Beginner takeaway

The GMO International Quality ETF (QLTI) has shown positive price and total returns over the past year. While it provides some cash distributions, they are infrequent and the yield is low. The fund currently shows a stable erosion-risk score, meaning its price has not shown signs of severe deterioration. Always remember that a low distribution yield means this fund is likely focused more on growth or stability than on providing high regular income.