What this ETF is trying to do

The Nuveen Short Duration Credit Opportunities Fund (JSD) is an ETF that focuses on credit opportunities with short durations.

What the numbers show

As of July 28, 2023, the current price of JSD is $11.60. An estimated price from roughly one year ago was about $12.46.

When looking at how the fund performed over the last year, it is important to look at two different numbers:

• One-year price return: This was -6.90%. This means the share price itself went down.

• One-year total return: This was 3.70%. Total return includes both the change in share price and the cash distributions paid to investors.

For the year-to-date (YTD) period, the price return is -2.19%, while the YTD total return is 4.42%. Over a three-year period, the price return was 0.43%, but the three-year total return was much higher at 29.32%.

Income and distribution explanation

This ETF provides cash distributions, which are regular payments made to investors. The distribution yield is approximately 11.16%. These payments usually happen every month, and there were 12 payments in the last year.

It is important to understand that a high distribution yield is not the same as total return. While these payments provide cash income, they do not guarantee that your original investment will stay at the same value.

NAV erosion explanation

"NAV erosion" refers to a decline in the actual value of the assets held within the fund. If an ETF's share price falls significantly over time, it can be a sign of this type of erosion.

For JSD, the erosion-risk score is 94, which is labeled as "Stable / sideways." The severity is described as "good," and there is no severe erosion-risk flag.

Pros

• The fund has shown a strong three-year total return of 29.32%.

• It provides regular monthly cash distributions.

Cons

• The fund has experienced a share-price decline. For example, the one-year price return was -6.90%.

Beginner takeaway

When investing, it is helpful to see how different numbers affect your money. Imagine you invested $10,000 in this ETF about one year ago.

If you only looked at the share price (the price return), your $10,000 would have dropped to approximately $9,310 because of the -6.90% decline. However, because you also received cash distributions, your total return would have been 3.70%, meaning your investment would be worth approximately $10,370.

Many income investors prefer ETFs where the share price stays steady or goes up slightly. This is because a falling share price can make it harder to keep your original principal (the money you started with) even if you are receiving regular cash payments.