ETF Education Report: Credit Suisse Asset Management Income Fund Inc (CIK)

What this ETF is trying to do

The Credit Suisse Asset Management Income Fund Inc (ticker: CIK) is an exchange-traded fund (ETF). While the specific investment strategy isn't listed in the data, the name suggests it focuses on providing income to its investors.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This only measures how much the share price has gone up or down.

• Total Return: This includes both the change in share price *and* any cash distributions (dividends) paid out.

For CIK, the numbers show different trends depending on how long you look:

• Year-to-Date (YTD): The price return is approximately -17.31%, while the total return is approximately -11.11%.

• One Year: The price return is approximately -21.21%, while the total return is approximately -13.27%.

• Three Years: The price return is approximately -12.69%, but the total return is a positive 15.54%.

To visualize the price change, the estimated price from roughly one year ago was $2.97. The current price is $2.34.

Income and distribution explanation

This ETF has a distribution yield of approximately 10.79%. This means the fund pays out a significant amount of cash relative to its price. These distributions happen frequently; the data shows 12 payments over the last year, usually occurring on a monthly basis. Most recently, these payments have been made on Mondays.

It is important to remember that a high distribution yield does not mean you are making that much profit. You must look at the total return to see how the share price and the cash payments work together.

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.

CIK has an erosion score of 55, which is labeled as "Moderate price erosion." This indicates a moderate level of risk regarding the stability of the fund's value. However, there is no "severe erosion-risk flag" for this ETF.

Pros

• The fund provides a high distribution yield of approximately 10.79%.

• Over a three-year period, the total return was positive at approximately 15.54%.

Cons

• The one-year and year-to-date price returns have been negative.

• There is a moderate erosion-risk score of 55.

Beginner takeaway

When looking at CIK, it is helpful to distinguish between the cash you receive (distributions) and the value of your shares (price). While the fund offers a high yield, the share price has declined over the last year. Always look at the total return to get a complete picture of how an investment is performing.