What this ETF is trying to do

The TOUCHSTONE INTERNATIONAL EQUITY ETF (ticker: TLCI) is an exchange-traded fund designed to provide exposure to international companies. It holds a variety of stocks from around the world, such as Taiwan Semiconductor Manufacturing Co Ltd ADR and Safran SA. This ETF is not a leveraged or inverse fund, meaning it does not use borrowed money to multiply returns or bet against the market.

What the numbers show

The current price of TLCI is $26.42. To understand how the price has moved, we can look at different timeframes:

• Year-to-Date (YTD): The price return is up approximately 1.31%.

• One Year: The one-year price return was approximately -1.27%.

When looking at total returns, which include the effect of distributions, the one-year total return was approximately -0.68%. This shows that while the share price dropped by 1.27%, the total return was slightly higher because of the cash paid out to investors. We also have an estimated price from roughly one year ago, which was $26.76.

Income and distribution explanation

TLCI provides some level of cash income through distributions. The distribution yield is approximately 0.59%. It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same as your total return.

The data shows that distributions for this ETF are "irregular" or "less frequent." In the last 12 months, there was only one payout recorded.

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." TLCI has an erosion score of 94, which is labeled as "Stable / sideways" with a "good" severity rating. Additionally, there is no severe erosion-risk flag for this ETF.

Pros

• Stable Price Trend: The erosion-risk score suggests the fund's price movement has been relatively stable or sideways rather than rapidly declining.

• Global Exposure: The fund provides access to a diverse list of international companies, including those in technology, healthcare, and travel.

Cons

• Low Distribution Frequency: The income is described as irregular and less frequent, which may not suit investors looking for a steady monthly paycheck.

• Recent Price Decline: The one-year price return has been negative.

Beginner takeaway

TLCI is an international equity ETF that focuses on a variety of global companies. While it has shown some price decline over the last year, its erosion-risk score suggests a stable trend. Investors should note that while it pays distributions, they are not frequent, and the yield is relatively low. Always remember that price returns and total returns are different measurements of performance.