ETF Education Report: Miller/Howard High Income Equity Fund (HIE)

What this ETF is trying to do

The Miller/Howard High Income Equity Fund (HIE) is an exchange-traded fund (ETF) listed on the NYSE. While the specific investment strategy is not detailed in the data, the name suggests it focuses on providing high income to its investors.

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 the money paid out through distributions.

According to the data as of November 20, 2024:

• Year-to-Date (YTD): The price return is approximately 18.38%. However, the YTD total return is higher at approximately 23.87%.

• One Year: The one-year price return is approximately 24.11%. The one-year total return is approximately 31.17%.

• Three Years: The three-year price return is approximately 22.30%, while the three-year total return is approximately 45.30%.

To see how the price changed, we can look at an estimated price from roughly one year ago, which was approximately $10.12. The current price is $12.56.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 4.87%. This number describes the cash payments relative to the current ETF price. These distributions happen frequently; the fund has made 12 payments over the last year and usually pays out monthly.

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 (your principal) will stay the same value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases significantly over time. If an ETF's share price falls a lot, it can be a sign of risk to the investor's principal.

For this fund, the erosion-risk score is 100, and the label is "No price erosion detected." The erosion severity is listed as "good," and there is no severe erosion-risk flag. This means the current data does not show signs of substantial price deterioration.

Pros

• The fund has shown positive price returns over the last year and three years.

• The total return is higher than the price return, meaning distributions have added value to the overall performance.

• It provides regular monthly cash distributions.

Cons

• There is no data provided regarding the fund's specific holdings (the companies it owns).

• As with all investments, share prices can change, and past performance does not guarantee future results.

Beginner takeaway

When looking at high-income ETFs, always look at both the price return and the total return. The price return tells you how the share price moved, while the total return shows you the full picture, including the cash paid out to you. This fund has shown growth in both its share price and its total return over the measured periods.