Understanding the Goldman Sachs Dynamic New York Municipal Income ETF (GMNY)

What this ETF is trying to do

The GMNY ETF is an exchange-traded fund focused on municipal income. This means it generally seeks to provide income through investments related to municipal bonds.

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 measures only the change in the share price. For GMNY, the year-to-date (YTD) price return is approximately -4.26%. The one-year price return is approximately -3.60%.

• Total Return: This includes the share price change plus any distributions (cash payments) received. The YTD total return is approximately -1.79%, and the one-year total return is approximately -0.26%.

Because the total return numbers are higher than the price return numbers, it shows that the cash distributions helped offset some of the share-price decline.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $49.60, and the current price is $47.82.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 3.54%. This number describes the cash payments relative to the current ETF price. These distributions usually happen monthly, with 12 payments recorded over the last year.

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

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Investors often care about this because they want their principal (the original money they put in) to remain stable.

For GMNY, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This suggests the fund's price movement is not currently showing signs of high-risk erosion.

Pros

• The fund provides regular monthly distributions.

• The erosion-risk measurements suggest a stable price trend rather than rapid deterioration.

Cons

• The ETF has experienced both share-price declines and negative total returns over the last year.

• The income rating grade is a "C."

Beginner takeaway

When evaluating an ETF like GMNY, look at both the share price and the total return. A falling share price can be partially balanced by cash distributions, but it is important to track the total return to see how your investment is actually performing. Always remember that high yields do not replace the importance of price stability.