What this ETF is trying to do

The Invesco BulletShares 2032 Municipal Bond ETF (BSMW) is an exchange-traded fund. Based on its name, it focuses on municipal bonds that are tied to a specific target year, which is 2032.

What the numbers show

When looking at an ETF, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes both the price change and any cash payments (distributions) made to investors.

Here is what the data shows for BSMW:

• Year-to-Date (YTD): The price return is approximately -5.73%. However, the total return is approximately -3.39%.

• One Year: The price return is approximately -5.34%, while the total return is approximately -2.23%.

• Three Years: The price return is approximately -0.48%, but the total return is much higher at approximately 9.87%.

To give you an idea of the price movement, the current price is $23.67. The estimated price from roughly one year ago was approximately $25.00.

Income and distribution explanation

This ETF provides cash payments to investors, known as distributions. The distribution yield is approximately 3.41%. This number describes the cash payments relative to the current ETF price. These payments usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean you are earning that same amount in total return. You must look at the total return figures to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. StockValueFinder uses an "erosion-risk score" to measure this risk.

For BSMW, the erosion score is 75, which is labeled as "mild price erosion." This is a measurement of risk, not a guarantee that the value has been destroyed. There is no severe erosion-risk flag for this ETF.

Pros

• The three-year total return is positive at approximately 9.87%.

• The ETF provides regular monthly distributions.

Cons

• The price return has been negative for the year-to-date and one-year periods.

• The erosion-risk score indicates "mild price erosion."

Beginner takeaway

When studying BSMW, remember that the share price and the total return are different. While the share price has gone down recently, the total return (which includes cash payments) shows a different picture. Always look at both numbers to understand how an ETF is performing.