Understanding the JPMorgan Sustainable Municipal Income ETF (JMSI)

What this ETF is trying to do

The JPMorgan Sustainable Municipal Income ETF (JMSI) is an exchange-traded fund (ETF) listed on the NYSE. While the specific investment strategy details are not listed in the provided data, this type of fund generally focuses on municipal income.

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.

• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.

For JMSI, the numbers show different trends depending on how much time has passed:

• Year-to-Date (YTD): The price return is approximately -4.39%. However, the total return is slightly better at -2.04%.

• One Year: The price return was approximately -4.22%, while the total return was approximately -0.63%.

• Three Years: The price return was approximately -2.01%, but the total return was positive at approximately 9.40%.

To give you an idea of price movement, the estimated price from roughly one year ago was $50.29. The current price is $48.17.

Income and distribution explanation

Some investors look for ETFs that pay out regular cash. This is called the distribution yield. For JMSI, the distribution yield is approximately 3.82%. The fund has paid out trailing distributions of $1.84 per share and usually pays these out monthly. In the last 12 months, there were 12 payouts, with Monday being the most common day for a distribution.

It is important to remember that a high distribution yield does not mean the investor earned that same percentage as their total return. You must look at the total return 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. StockValueFinder uses an erosion-risk score to measure this risk. JMSI 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.

Pros

• The three-year total return is positive at approximately 9.40%.

• The fund provides regular monthly distributions.

• The erosion-risk score suggests the fund is currently stable or moving sideways.

Cons

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

• The total return has also been negative for the one-year and year-to-date periods.

Beginner takeaway

When studying JMSI, notice the difference between the share price and the total return. While the share price has declined over the last year, the total return (which includes cash payments) is closer to zero. Always check both numbers to get a full picture of how an ETF is performing.