What this ETF is trying to do

The First Trust Flexible Municipal High Income ETF (MFLX) is designed to provide investors with income. It focuses on municipal bonds, which are loans made to local or state governments.

What the numbers show

As of October 5, 2026, the share price of MFLX was $15.89. To understand how the price has changed, we can look at the price return and the total return.

• Price Return: This measures only the change in the share price. The one-year price return was -6.20%, and the year-to-date (YTD) price return was -6.54%.

• Total Return: This reflects the overall return, including the cash distributions paid to investors. The one-year total return was -2.14%, and the YTD total return was -3.47%.

Over a longer period, the three-year price return was 0.03%, while the three-year total return was 12.88%.

For a simple example, if you had invested $10,000 based on the estimated price from roughly one year ago ($16.94), the price-only decline of -6.20% would mean your shares are now worth approximately $9,380. This example does not include any cash distributions you may have received.

Income and distribution explanation

MFLX usually pays distributions monthly. Over the last 12 months, it made 12 payments. The distribution yield is 4.53%.

It is important for beginners to know that a high distribution yield alone can be misleading. While these payments provide cash income, they do not guarantee that the original money you invested (the principal) will stay the same or grow.

NAV erosion explanation

"NAV erosion" happens when the underlying value of an ETF's assets declines over time. StockValueFinder uses an erosion-risk score to measure this. MFLX has an erosion score of 75, which is labeled as "mild price erosion." This means there is a mild risk that the fund's value is wearing away, though the severe erosion-risk flag is currently false.

Pros

• Regular Income: The fund provides monthly cash distributions.

• Long-term Total Return: The three-year total return is positive at 12.88%.

Cons

• Recent Price Decline: Both the YTD and one-year price returns are negative.

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

Beginner takeaway

MFLX is an income-focused fund that pays investors monthly. While the total returns over three years have been positive, the share price has declined over the last year. Investors often care about principal stability because they don't want their initial investment to shrink even while they receive income payments.