Understanding the State Street(R) SPDR(R) Dow Jones(R) International Real Estate ETF (RWX)

What this ETF is trying to do

This ETF, known by its ticker symbol RWX, focuses on international real estate. This means it invests in companies that own or manage property in different countries around the world.

What the numbers show

When looking at an ETF, it is important to know the difference between "price return" and "total return."

• Price Return: This only tracks how much the share price itself has changed.

• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.

For RWX, the numbers show different trends depending on the time frame:

• Year-to-Date (YTD): The price return is approximately -5.71%, while the total return is approximately -3.88%.

• One Year: The price return is approximately -5.95%, while the total return is approximately -2.17%.

• Three Years: The price return is approximately 7.80%, while the total return is much higher at approximately 19.23%.

To give you an idea of the price movement, the estimated price from roughly one year ago was $28.07. The current price is $26.40.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. RWX has a distribution yield of approximately 4.07%. This number describes the cash paid out relative to the ETF's price. Over the last 12 months, there were 4 distributions, which usually happen every quarter.

It is important to remember that a high distribution yield does not mean you are earning that same amount in total return. You must look at the total return to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. StockValueFinder uses an "erosion score" to measure this risk.

RWX has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk and does not necessarily mean the fund's value has collapsed.

Pros

• Long-term Total Return: Over a three-year period, the total return was approximately 19.23%.

• Regular Income: The ETF provides regular distributions, usually on a quarterly basis.

Cons

• Recent Price Declines: Both the year-to-date and one-year price returns have been negative.

• Five-Year Performance: The five-year total return was approximately -12.02%.

Beginner takeaway

When studying RWX, remember that price changes and cash distributions are two different things. While the ETF has provided regular income, the share price has seen some recent declines. Always look at the "total return" to get the full picture of how an investment has performed over time.