What this ETF is trying to do

The MFS Investment Grade Municipal Trust (ticker: CXH) is an ETF traded on the NYSE.

What the numbers show

The current price for one share is $7.63. Based on calculations, the estimated price from roughly one year ago was about $7.56.

When looking at this ETF, it is important to understand that "price return" and "total return" are different things. Price return only measures how much the share price itself changes. The one-year price return for CXH was 0.93%. However, the one-year total return was 8.67%. Total return is a more complete measure because it includes both the share-price change and the cash distributions paid to investors.

The year-to-date (YTD) numbers show a different story. The YTD price return is -4.03%, which means the share price has declined so far this year. However, the YTD total return is 0.24%. This shows that the cash payments helped keep the overall return positive even though the share price dropped.

To see how this works, imagine you invested $10,000 at the estimated price from roughly one year ago ($7.56). If you only looked at the share-price change, your investment would be worth about $10,093. But because the total return was 8.67%, your investment would actually be worth more because of the cash distributions you received.

Income and distribution explanation

This ETF has a distribution yield of 7.56%. This number describes the cash distributions relative to the ETF price. These payments are frequent; in the last 12 months, there were 13 distributions. The fund usually pays out on a monthly basis. It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the actual value of the assets held within the ETF. While a falling market price can look like erosion, they are not always the same thing.

For CXH, the StockValueFinder erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag. This means the fund's value has been relatively steady rather than showing signs of a major collapse.

Pros

• The ETF provides a high distribution yield of 7.56%.

• It has shown strong long-term growth, with a three-year total return of 21.67%.

Cons

• The year-to-date price return is -4.03%, meaning the share price has seen a decline recently.

Beginner takeaway

When looking at ETFs that pay cash, do not rely on the distribution yield alone. A high yield can be misleading if the share price is falling quickly. Many income investors prefer ETFs that stay "sideways" or move up slightly. This helps them collect regular cash without losing the original money they invested.