The dividend cut “is likely to disappoint both yield and retail investors, thereby putting additional pressure on the share price,” Francisco Riquel, an analyst with N+1 Group, said in note, Wall Street Journal reports.

EWP also shows a 4.67% 12-month yield, and given the fund’s large exposure to Banco Santander, investors should also brace for lower yields ahead.

However, considering the size of the capital influx, some believe the bank may be positioning for a takeover bid.

iShares MSCI Spain Capped ETF

For more information on Spain, visit our Spain category.

Max Chen contributed to this article.