ETF Report: Nuveen Select Tax-Free Income Portfolio (NXP)

What this ETF is trying to do

The Nuveen Select Tax-Free Income Portfolio, known by its ticker symbol NXP, is an Exchange Traded Fund (ETF). This type of fund is designed to provide income to investors. Because it focuses on "tax-free" income, it aims to give money to shareholders in a way that may help them avoid certain taxes.

What the numbers show

As of July 10, 2026, the current price of one share is $14.29. Looking at how the price has changed over time, we can see different trends:

• Year-to-Date (YTD): The price has gone up by 1.35% so far this year.

• One Year: The price has increased by about 2% over the last twelve months.

• Three Years: The price has actually dropped slightly by about 1% over a three-year period.

It is important to look at "total return," which includes both price changes and the money paid out to investors. For example, while the price only went up about 2% in one year, the total return was much higher at 6.66%.

Income and distribution explanation

This ETF pays out money to its shareholders, which is called a "distribution." Over the last 12 months, it paid out $0.639 per share. These payments happen 12 times a year, meaning they are usually sent out every month. The distribution yield is 4.47%.

When looking at an ETF, high yield alone can be misleading. A high percentage might look good, but you must also check if the actual value of the fund is staying steady or shrinking.

NAV erosion explanation

"NAV erosion" happens when the value of the underlying assets in the fund drops over time. Think of it like a bucket with a small hole in the bottom; even if you keep pouring water (income) in, the level of the water (the share price) keeps getting lower.

If an ETF has severe erosion, a high share price can fall to a much lower price very quickly. This can destroy your "principal," which is the original amount of money you put in. However, NXP has an erosion score of 94, which is labeled as "Stable / sideways." This means it does not show signs of severe price collapse.

Pros

• It provides regular monthly income.

• The total return over one year (6.66%) is higher than the price return alone.

• The fund appears to be stable rather than collapsing in price.

Cons

• The share price has seen a slight decline over a three-year period.

• Investors must manage the balance between receiving income and the changing value of their shares.

Beginner takeaway

Income investors usually prefer ETFs that go "sideways" (stay at a similar price) or move slightly up. They prefer this because they want to collect their monthly payments without losing the original money they invested. NXP shows a stable pattern, but always remember that looking at the yield is only one part of the story.