Share-split context: A forward split was recorded on Oct 18, 2017 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: ISHARES CALIFORNIA MUNI BOND ETF (CMF)

What this ETF is trying to do

The ISHARES CALIFORNIA MUNI BOND ETF (ticker: CMF) is an exchange-traded fund that focuses on municipal bonds from California. Municipal bonds are loans made to local government entities.

What the numbers show

When looking at this ETF, it is important to understand two different types of returns: price return (how much the share price changed) and total return (the price change plus any cash distributions received).

Because this ETF has a history of "forward splits," we use split-adjusted numbers. A forward split means one old share became multiple new shares. This makes the price per share look lower, but it does not change how much of the fund you own.

Here is what the data shows:

• Year-to-Date (YTD): The price return is approximately -6.28%. The total return is approximately -4.17%.

• One Year: The price return is approximately -5.59%. The total return is approximately -2.76%.

• Three Year: The price return is approximately -0.50%. However, the total return is approximately 8.46%.

Income and distribution explanation

This ETF provides cash to investors through distributions. The distribution yield is approximately 3.13%. This number describes the cash paid out relative to the current share price of $53.85.

The fund usually pays these distributions monthly, and over the last year, there were 12 payouts. While high yields can provide cash income, they are not the same as total return.

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 CMF, the erosion score is 75, which is labeled as "Mild price erosion." This is a measurement of risk and does not necessarily mean the fund's value has collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The fund has a history of providing monthly cash distributions.

• Over a three-year period, the total return was positive at approximately 8.46%, even though the share price itself was slightly down.

Cons

• The share price has seen a decline in the short term (year-to-date and one-year periods).

• The fund shows a "mild" erosion-risk score.

Beginner takeaway

When looking at CMF, remember that the share price and the total return are different. A falling share price can make an investment look like it is losing value, but the total return includes the cash distributions you received. Always look at both numbers to get a full picture of how an ETF is performing.

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*Disclaimer: This report is for educational purposes only. It does not provide financial advice. I am not recommending whether you should buy, sell, or hold this ETF.*