ETF Education Report: CGMU

What this ETF is trying to do

The Capital Group Municipal Income ETF (ticker: CGMU) is an exchange-traded fund. While the specific investment strategy is not detailed in the provided data, its name suggests it focuses on municipal income.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how the share price changes. Total return includes both the price change and the cash distributions paid out to investors.

Based on the data as of October 5, 2026:

• Year-to-Date (YTD): The price return is approximately -5.00%. However, the YTD total return is approximately -2.59%.

• One Year: The one-year price return is approximately -4.41%, while the one-year total return is approximately -1.11%.

• Three Years: The three-year price return is approximately 1.76%, but the three-year total return is much higher at approximately 12.42%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was $27.21, and the current price is $26.01.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 3.55%. This number describes the cash paid out relative to the current ETF price. These distributions happen frequently; the data shows 12 payments over the last year, usually occurring on a monthly basis. Most of these payments have been made on Fridays.

It is important to remember that a distribution yield is not the same as total return. A high yield does not guarantee that an investor's total value will grow.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be related to erosion, they are not the same thing.

StockValueFinder uses an "erosion-risk score" to measure this risk. CGMU has an erosion score of 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 three-year total return shows positive growth of approximately 12.42%.

• The erosion-risk measurements suggest the fund is currently stable or sideways rather than showing high risk.

• It provides regular monthly cash distributions.

Cons

• The share price has declined over the last year and year-to-date.

• Both the price return and total return have been negative for the one-year and year-to-date periods.

Beginner takeaway

When looking at CGMU, it is helpful to distinguish between the share price and the total return. While the share price has gone down recently, the total return (which includes cash payments) is often higher because of the distributions. Always look at the total return to get a fuller picture of how an investment is performing.