What this ETF is trying to do

This report is about the BlackRock MuniYield Michigan Quality Fund Inc (ticker: MIY). It is an ETF.

What the numbers show

The current price of one share is $11.46. An estimated price from roughly one year ago was approximately $11.42. If you had invested $10,000 based on that estimated price, your investment's share value would be about $10,035 today based only on the change in share price.

When looking at this ETF, it is important to understand two different types of measurements: price return and total return.

• Price return only tracks how the share price itself moves up or down. For example, the one-year price return was 0.35%.

• Total return includes both the change in share price AND any cash payments (distributions) you received. The one-year total return was 5.94%.

The difference between these two numbers is important. For example, the year-to-date (YTD) price return is -2.39%, which means the share price has gone down. However, the YTD total return is 1.61%. This shows that the cash payments helped the overall value stay positive even though the share price fell.

Income and distribution explanation

This ETF provides cash to investors through distributions. The distribution yield is 5.71%. This means the amount of cash paid out is about 5.71% of the ETF's current price. These payments usually happen every month. Over the last year, the trailing distributions were $0.654 per share.

It is important to remember that a high distribution yield does not mean you earned that same percentage as your total return. Always check the total return figure to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the actual assets held within the ETF. StockValueFinder uses an erosion-risk score to measure this risk. This ETF has an erosion score of 94, which is labeled as "Stable / sideways." The severity is rated as "good," and there is no severe erosion-risk flag for this fund.

Pros

• The ETF has a distribution yield of 5.71%.

• The erosion-risk score suggests the fund's value is relatively stable.

Cons

• The year-to-date price return is -2.39%, meaning the share price has seen a decline recently.

Beginner takeaway

When looking at an ETF like MIY, it is helpful to look at both the share price and the cash payments. This ETF shows that even if the share price moves down (a share-price decline), the total return can be different because of the monthly cash distributions.