What this ETF is trying to do

The Nomura National High-Yield Municipal Bond ETF (HTAX) is an exchange-traded fund that invests in municipal bonds. These are loans made to local or state governments. "High-yield" generally means the fund looks for bonds that offer higher interest payments, which often comes with different levels of risk.

What the numbers show

As of October 5, 2026, the share price of HTAX was $22.97.

To understand how the price has changed, we can look at the price return and the total return. Price return only tracks the change in the share price, while total return includes the cash distributions paid to investors.

• Year-to-Date (YTD): The price return is -5.55%, while the total return is -2.31%.

• One-Year: The price return is -5.71%, while the total return is -1.30%.

An estimated price from roughly one year ago was $24.36. If an investor had put $10,000 into the ETF based on that estimated price and looked only at the price change (ignoring distributions), the value would have decreased by approximately 5.71%.

Income and distribution explanation

HTAX usually pays distributions monthly. Over the last 12 months, it made 12 payments totaling $1.11 per share. This results in a distribution yield of approximately 4.85%.

It is important for beginners to know that a high distribution yield alone can be misleading. A fund can pay out cash to investors even while its share price is falling.

NAV erosion explanation

"NAV erosion" happens when the net asset value (the actual value of the fund's holdings) declines over time. While a falling share price does not always prove NAV erosion, investors track it to see if their original investment (the principal) is staying stable.

HTAX has an erosion-risk score of 75, which is labeled as "mild price erosion." The severe erosion-risk flag is currently false.

Pros

• Regular Income: The fund provides frequent cash payments, usually on a monthly basis.

• Lower Total Loss: The total return is less negative than the price return, showing that distributions helped offset some of the share-price decline.

Cons

• Price Decline: Both the year-to-date and one-year price returns are negative.

• Erosion Risk: The fund has a "mild" erosion-risk label.

Beginner takeaway

HTAX provides monthly income through municipal bonds, but its share price has declined over the past year. While the distributions help improve the total return, the "mild" erosion-risk score suggests that the principal value has not been perfectly stable.