ETF Education Report: Nuveen Mortgage and Income Fund (JLS)

What this ETF is trying to do

The Nuveen Mortgage and Income Fund (JLS) is an ETF listed on the NYSE. While the specific investment strategy is not detailed in the provided data, the name suggests it focuses on mortgage-related assets to provide income to investors.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how the share price changes. Total return includes both the price change and the cash distributions paid out to investors.

Based on the data:

• Year-to-Date (YTD): The price return is approximately -11.22%. However, the total return is -4.11%.

• One Year: The price return was approximately -14.78%, while the total return was -5.66%.

• Three Year: The price return was approximately 0.37%, but the total return was much higher at approximately 36.17%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $18.95, and the current price is $16.15.

Income and distribution explanation

This ETF has a high distribution yield of approximately 11.41%. This means the fund pays out a significant amount of cash relative to its share price. These distributions usually happen monthly, with Friday being the most common day for payments. Over the last 12 months, the trailing distributions were $1.84 per share.

It is important to remember that a high distribution yield does not mean the investor earned that same percentage as a total return. You must look at the total return figure to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. StockValueFinder uses an "erosion-risk score" to measure this risk.

For JLS, the erosion score is 75, which is labeled as "mild price erosion." This is a measurement of risk and does not necessarily prove that the fund's value has collapsed. There is no severe erosion-risk flag for this ETF.

Pros

• The fund offers a high distribution yield of approximately 11.41%.

• It has shown a strong three-year total return of approximately 36.17%.

Cons

• The share price has declined recently, with a one-year price return of approximately -14.78%.

• The fund shows a "mild" erosion-risk score.

Beginner takeaway

When looking at ETFs like JLS, high yields can be eye-catching, but they can also be misleading. Always compare the price return (how much the share price moved) with the total return (the price movement plus the cash paid out). This helps you see if the cash income is helping to offset a falling share price.