What this ETF is trying to do

The GLOBAL X MSCI VIETNAM ETF (ticker: VNAM) is an exchange-traded fund (ETF). Its goal is to provide investors with exposure to the stock market in Vietnam.

What the numbers show

The current price of VNAM is $23.75. For comparison, the estimated price from roughly one year ago was approximately $23.55.

When looking at how the fund has performed over different periods, we can see two types of numbers: "price return" and "total return." Price return only looks at the change in the share price. Total return includes both the share-price change and any distributions (like cash payments) made by the ETF.

Here is the performance data provided:

• Year-to-Date (YTD): The price return is -5.57%. The total return is -5.46%.

• One-Year Period: The price return is 0.85%. The total return is 1.34%.

• Three-Year Period: The price return is 43.72%. The total return is 46.56%.

Income and distribution explanation

The distribution yield for this ETF is 0.51%. This number describes the cash distributions relative to the current price of the ETF. Over the last 12 months, there were 2 payouts. These distributions happen on an irregular or less frequent basis. It is important to remember that a high distribution yield does not automatically mean an investor earned that percentage as their total return.

NAV erosion explanation

This report includes an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag for this fund.

"NAV erosion" is a term used to describe the loss of value in the underlying assets of a fund over time. While a falling share price can happen, it does not always mean that NAV erosion is occurring. In this case, the data suggests the price trend has been relatively stable.

Pros

• The ETF has shown significant positive growth over a three-year period, with a total return of 46.56%.

• It has a "good" erosion severity rating and a high stability score.

Cons

• The year-to-date price return is currently negative at -5.57%.

• The distribution yield is relatively low at 0.51%, which may not meet the needs of investors looking for high immediate income.

Beginner takeaway

VNAM allows investors to participate in the Vietnamese market. While the fund has seen strong growth over the last three years, its performance year-to-date has been down. When reviewing this ETF, it is helpful to look at both the price return and the total return to see how distributions affect the overall results.