ETF Education Report: MFS High Income Municipal Trust (CXE)

What this ETF is trying to do

MFS High Income Municipal Trust (ticker: CXE) is an ETF traded on the NYSE. While the specific investment strategy is not detailed in the provided data, the name suggests it focuses on high-income municipal investments.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only the change in the share price. For CXE, the one-year price return was approximately 3.99%. The three-year price return was approximately 5.19%.

• Total Return: This is a broader measure that includes both price changes and the distributions (cash payments) made to investors. For CXE, the one-year total return was approximately 11.23%, and the three-year total return was approximately 24.04%.

The current price is $3.65. Based on the one-year price return, the estimated price from roughly one year ago was approximately $3.51. Year-to-date (YTD), the price return has been approximately -1.35%, while the YTD total return is 1.94%.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 6.81%. This number describes the cash payments relative to the current ETF price. These distributions usually happen monthly, with 13 payments recorded over the last 12 months. Most of these payments occurred on Tuesdays.

It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment (your principal) will stay the same value.

NAV erosion explanation

"NAV" stands for Net Asset Value, which is essentially the value of everything the ETF owns. "NAV erosion" happens when the value of those underlying assets drops significantly over time.

For CXE, the erosion-risk score is 100, and the erosion label is "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag. This means the current data does not show signs of significant price deterioration related to erosion risks.

Pros

• The ETF has a reported one-year total return of approximately 11.23%.

• The three-year total return is significantly higher at approximately 24.04%.

• It offers a distribution yield of approximately 6.81%.

Cons

• The year-to-date price return is currently negative at approximately -1.35%.

• No top holdings were provided in the data to show exactly what companies or bonds the fund owns.

Beginner takeaway

When evaluating an ETF like CXE, always look at the total return rather than just the price change or just the yield. The price tells you how much the share cost changed, while the total return shows how much you actually earned including the cash payments. High yields can be attractive, but they should always be viewed alongside the total return and the stability of the share price.