MFS Multimarket Income Trust (MMT) Educational Report

What this ETF is trying to do

MFS Multimarket Income Trust (MMT) is an exchange-traded fund (ETF) listed on the NYSE. While the specific investment strategy is not detailed in the data, the fund focuses on providing income to its investors.

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 share price changes and the cash distributions (dividends) paid out to investors.

For MMT, the numbers show different trends depending on the time frame:

• Year-to-Date (YTD): The price return is approximately -7.31%, while the total return is approximately -0.48%.

• One Year: The price return was approximately -9.07%, while the total return was approximately -0.24%.

• Three Years: The price return was approximately 0.47%, but the total return was much higher at approximately 31.09%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $4.74, and the current price is $4.31.

Income and distribution explanation

This ETF has a distribution yield of approximately 9.78%. This means the fund pays out a significant amount of cash relative to its share price. These distributions usually happen monthly, and in the last 12 months, there were 12 payouts. Most of these payments have occurred on Tuesdays.

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

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. While a falling market price does not always mean the NAV is shrinking, we use an erosion-risk score to measure this risk.

MMT has an erosion score of 75, which is labeled as "mild price erosion." This indicates a mild level of risk regarding price deterioration. However, there is no "severe erosion-risk flag" for this ETF.

Pros

• The fund has a history of strong three-year total returns (approximately 31.09%).

• It provides a high distribution yield for investors seeking regular cash income.

Cons

• The share price has seen a decline over the last year (approximately -9.07% price return).

• The fund shows a "mild" erosion-risk score.

Beginner takeaway

When looking at MMT, it is helpful to distinguish between the cash you receive (distribution yield) and how the share price moves (price return). High yields can provide income, but they often come alongside changes in the share price. Always look at the total return to see how both price changes and distributions work together over time.