Understanding the FIRST TRUST CALIFORNIA MUNICIPAL HIGH INCOME ETF (FCAL)

What this ETF is trying to do

The FCAL ETF is a type of fund that focuses on California municipal bonds. These are loans made to local governments in California. The goal of this ETF is to provide "high income" to its investors through regular payments.

What the numbers show

As of July 16, 2026, the current price of one share is $49.31. Looking at how the fund has performed over different periods, we can see how much the value changed:

• One Year: The price went up by 3.44%, but the "total return" (which includes the extra money paid out to you) was 6.99%.

• Three Years: The price only grew by 0.63%, but the total return was much higher at 10.55%.

• Year to Date: So far this year, the price has grown by 0.67%, and the total return is 1.74%.

To see how price changes affect money, imagine you invested $10,000 exactly one year ago when the estimated price was about $47.67. Before any extra payments were added, your $10,000 would have grown to roughly $10,344 based on the price return alone.

Income and distribution explanation

This ETF is designed to pay out money regularly. Over the last 12 months, it paid out a total of $1.657 per share. This happens usually every month, most often on a Thursday. The "distribution yield" is 3.36%, which tells you how much income the fund pays relative to its price.

NAV erosion explanation

"NAV erosion" is a term used when an ETF's share price keeps dropping over time because it is paying out more money than it is earning. If a fund's price falls significantly, it can destroy your "principal," which is the original money you put in.

However, this ETF has an erosion score of 94, which is labeled as "Stable / sideways." This means it does not have severe erosion. It is not losing its value rapidly.

Pros

• It provides regular monthly income.

• The total returns over one and three years are higher than the price returns, meaning the payouts add real value.

• The fund's price has remained relatively stable rather than collapsing.

Cons

• While it pays income, the actual price of the shares does not grow very quickly on its own.

• Investors must remember that high yield alone can be misleading. A very high payout might look good, but if the share price is crashing at the same time, you could still lose money overall.

Beginner takeaway

Income investors usually prefer ETFs that go "sideways" (stay at the same price) or move slightly up. They prefer this because they want to collect the monthly payments without seeing their original investment shrink. Since FCAL is labeled as stable/sideways, it fits that pattern rather than showing a pattern of collapsing prices.