ETF Education Report: American Century Select High Yield ETF (AHYB)

What this ETF is trying to do

The American Century Select High Yield ETF (AHYB) is an exchange-traded fund listed on the NYSE. While specific holdings are not listed in this report, high-yield ETFs generally focus on providing income to investors through regular cash payments.

What the numbers show

It is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price moves. Total return includes both the price movement and the cash distributions paid out to investors.

Based on the data:

• Year-to-Date (YTD): The price return is approximately -4.25%. However, the YTD total return is positive at about 0.20%.

• One Year: The one-year price return is approximately -3.93%, while the one-year total return is about 2.06%.

• Three Years: The three-year price return is approximately 3.75%, and the three-year total return is significantly higher at about 23.83%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $46.60, and the current price is $44.77. This shows a share-price decline over that period.

Income and distribution explanation

This ETF has a distribution yield of approximately 6.25%. This means the fund pays out cash relative to its share price. These distributions usually happen monthly, with Tuesday being a common day for payments. Over the last 12 months, there were 12 distributions totaling approximately $2.80 per share.

Investors often look for high yields, but it is important to remember that a high distribution yield does not guarantee the total return will be high.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). A falling share price does not always mean NAV erosion is happening, but investors watch it closely.

For AHYB, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The fund provides a regular monthly distribution.

• The three-year total return has been positive at approximately 23.83%.

Cons

• The share price has seen recent declines (negative price returns) for both the year-to-date and one-year periods.

Beginner takeaway

When looking at AHYB, notice that even when the share price went down over the last year, the total return remained positive. This is because the cash distributions helped offset some of the price decline. Always look at total return, not just price, to see how distributions affect your overall results.