Understanding the JPMorgan High Yield Municipal ETF (JMHI)

What this ETF is trying to do

The JPMorgan High Yield Municipal ETF (ticker: JMHI) is an exchange-traded fund. While the specific holdings are not listed in this report, "high yield municipal" usually refers to an investment focused on municipal bonds that offer higher interest rates.

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 cash distributions (dividends) paid out to investors.

Here is how JMHI has performed:

• Year-to-Date (YTD): The price return is approximately -4.26%. However, the total return is -1.42%.

• One Year: The price return was approximately -4.52%, while the total return was approximately -0.21%.

• Three Years: The price return was approximately -0.56%, but the total return was a positive 13.99%.

To visualize the price change, if you had invested in this ETF one year ago, the estimated price was about $50.39. The current price is $48.11.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 4.61%. These payments are usually made monthly, with the most recent data showing 12 payments over the last year. Most of these payments have been made on Mondays.

It is important to remember that a high 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. StockValueFinder uses an "erosion-risk score" to measure this risk.

JMHI has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag for this ETF. This suggests the fund's structure is currently showing signs of stability rather than significant price deterioration.

Pros

• The three-year total return is positive at approximately 13.99%.

• The fund provides regular monthly cash distributions.

• The erosion-risk measurements suggest a stable profile.

Cons

• The one-year and year-to-date price returns have been negative.

• Total returns for the past year have also been slightly negative.

Beginner takeaway

When looking at JMHI, notice how the total return is often higher than the price return. This happens because the cash distributions help offset some of the share-price declines. Always look at both numbers to get a full picture of how an investment is performing.