Understanding the Vanguard Pacific Stock Index Fund ETF (VPL)

What this ETF is trying to do

The Vanguard Pacific Stock Index Fund ETF (VPL) is an exchange-traded fund that focuses on stocks in the Pacific region. It is designed to track a specific index of companies located in that part of the world.

What the numbers show

The current price of VPL is $115.37. To understand how the price has moved, we can look at its performance over different time periods:

• Year-to-Date (YTD): The price return is approximately 27.62%. The total return is also approximately 27.62%.

• One Year: The share-price return (price return) was approximately 29.60%. However, the total return—which includes distributions—was higher at approximately 33.11%.

• Three Years: The price return was approximately 74.09%, while the total return was approximately 90.59%.

It is important to know that "price return" only tracks the change in the share price. "Total return" is a more complete measure because it includes the value of any distributions paid out to investors.

If you had invested at the estimated price from roughly one year ago ($89.02) and the price moved to the current $115.37, that represents the share-price growth.

Income and distribution explanation

This ETF provides distributions, which are cash payments made to shareholders. The distribution yield is approximately 2.10%. This means the amount of cash distributed is about 2.10% relative to the ETF's price. The trailing distributions were approximately $2.42.

The data shows that the distribution frequency is "irregular" or "less frequent," with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. For this ETF, the erosion-risk score is 100, and the label is "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag. This means the data does not show signs of the price deteriorating in a way that suggests erosion.

Pros

• The ETF has shown positive price returns over the one-year and three-year periods.

• The total return is higher than the price return, meaning distributions have added value to the overall performance.

• The income rating is an "A" with a score of 89.

Cons

• The distributions are described as irregular or less frequent, so investors cannot rely on a steady, predictable schedule of cash payments.

• The top holdings list is currently empty in the provided data, so specific company exposure is not detailed here.

Beginner takeaway

VPL has experienced growth in both its share price and its total return over the last year and three years. While it pays a distribution yield, investors should remember that total return is the most important number to watch because it combines both price changes and cash payments.