ETF Report: FIRST TRUST NEW YORK MUNICIPAL HIGH INCOME ETF (FMNY)

What this ETF is trying to do

The FMNY ETF is a type of fund that focuses on "municipal" bonds. These are loans made to local governments, like cities or states in New York. The goal of this ETF is to provide investors with a higher level of income through these bond payments.

What the numbers show

As of July 16, 2026, the current price of one share is $26.70. Looking at how the fund has performed, the price has grown about 3.31% over the last year. When you include the extra money paid out to investors, the "total return" for the year was 7.23%.

If you had invested $10,000 into this ETF one year ago (when the estimated price was about $25.84), your investment would have grown in value before considering any extra payments. This shows that the price of the fund has been moving upward rather than downward over the last twelve months.

Income and distribution explanation

This ETF is designed to pay out money regularly. The "distribution yield" is 3.70%. This means the amount of cash paid out relative to the share price is about 3.70% per year. Over the last 12 months, the fund paid out a total of $0.989 per share. These payments usually happen once a month, most often on a Thursday.

It is important to remember that a high yield alone can be misleading. A very high yield might look attractive, but if the price of the ETF is falling quickly, you could lose more money in value than you gain in cash payments.

NAV erosion explanation

"NAV erosion" happens when the value of the underlying assets in an ETF drops, causing the share price to fall over time. If an ETF has severe erosion, a person might see their initial investment shrink significantly. For example, if a fund's price collapses from $50 down to $25, you have lost half of your principal (your original money).

In this case, FMNY has an "erosion score" of 94, which is labeled as "Stable / sideways." This means the fund is not currently suffering from severe erosion. Income investors usually prefer ETFs that go sideways or slightly up. They want the price to stay steady so they can keep their original money while collecting the regular cash payments.

Pros

• The fund has shown a positive total return over the last year (7.23%).

• It provides regular monthly income.

• The price history shows it is currently stable rather than collapsing.

Cons

• The total returns are tied to the performance of municipal bonds, which can change based on interest rates.

Beginner takeaway

FMNY is an ETF that focuses on providing regular cash payments through New York municipal bonds. While high yields can sometimes hide problems, this fund's data shows a stable price trend rather than severe NAV erosion.