ETF Education Report: BNY Mellon High Yield Strategies Fund (DHF)

What this ETF is trying to do

The BNY Mellon High Yield Strategies Fund (DHF) is an exchange-traded fund (ETF). While the specific investment strategy is not detailed in the provided data, the name suggests it focuses on "high yield" strategies.

What the numbers show

It is important to understand the difference between price return and total return. Price return only tracks how much the share price changes. Total return includes both the price change and any cash distributions (dividends) paid out to investors.

Based on the data:

• Year-to-Date (YTD): The price return is approximately -10.08%. However, the total return is -4.69%.

• One Year: The price return was approximately -14.23%, while the total return was -6.55%.

• Three Year: The price return was approximately 0.91%, but the total return was much higher at approximately 29.75%.

To visualize the price change, an investor's share price was estimated to be roughly $2.60 one year ago. The current price is $2.23.

Income and distribution explanation

This ETF has a distribution yield of approximately 9.42%. This number describes the cash distributions relative to the ETF's price. The fund has paid out $0.21 in trailing distributions and usually pays these out monthly, often on Thursdays.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. Total return is the more complete picture of how the investment performed.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. While a falling share price is not the same thing as NAV erosion, we use an erosion-risk score to measure this risk.

DHF has an erosion score of 75, which is labeled as "Mild price erosion." This is considered a mild level of risk and does not trigger a severe erosion-risk flag.

Pros

• The fund offers a high distribution yield of approximately 9.42%.

• Over a three-year period, the total return was positive at approximately 29.75%.

Cons

• The one-year price return has been negative, showing a share-price decline.

• The fund shows signs of "mild price erosion" according to its erosion score.

Beginner takeaway

When looking at high-yield ETFs, it is easy to focus only on the distribution yield (the cash paid out). However, a high yield can sometimes be accompanied by a declining share price. Always look at the total return to see how the combination of price changes and cash payments has actually affected the investment over time.