What this ETF is trying to do

The MainStay MacKay DefinedTerm Municipal Opportunities Fund (MMD) is an ETF that focuses on municipal opportunities. Generally, these types of funds seek to provide investors with regular income.

What the numbers show

As of October 5, 2026, the share price of MMD is $13.47. 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 is -10.56%, and the year-to-date (YTD) price return is -9.41%.

• Total Return: This reflects the overall return, including distributions. The one-year total return is -5.83%, and the YTD total return is -5.76%.

Because there is no split history for this ETF, we can use an estimated price from roughly one year ago, which was $15.06. For example, if an investor had put $10,000 into the share price alone one year ago, the price-only decline of 10.56% would mean the value of those shares would be approximately $8,944 today.

Income and distribution explanation

MMD pays out distributions usually every month. Over the last 12 months, it has made 12 payouts totaling $0.78 per share. This results in a distribution yield of approximately 5.79%.

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 investment (the principal) will stay the same or grow.

NAV erosion explanation

"NAV erosion" happens when the underlying value of a fund's assets declines over time. StockValueFinder uses an erosion-risk score to measure this. MMD 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.

Pros

• Regular Income: The fund provides frequent cash payments, usually on a monthly basis.

• Positive Long-Term Total Return: While short-term returns are negative, the three-year total return is 1.53%.

Cons

• Falling Share Price: The ETF has seen a share-price decline over the last year and year-to-date.

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

• Long-Term Total Return Loss: The five-year total return is -19.28%.

Beginner takeaway

MMD provides monthly income, but its share price has been falling. When looking at this ETF, it is important to distinguish between the distribution yield (the cash paid out) and the price return (the change in share value). Income investors generally care about principal stability to ensure their original investment doesn't disappear while they collect checks.