What this ETF is trying to do

MQY, the BlackRock MuniYield Quality Fund Inc, is an ETF traded on the NYSE. While specific holdings are not listed in the provided data, this type of fund generally focuses on municipal bonds to provide income to its investors.

What the numbers show

When looking at MQY, it is important to look at two different types of performance: price return and total return.

Price Return measures only the change in the share price. Over the last year, the one-year price return was approximately -14.11%. The year-to-date (YTD) price return was approximately -11.68%. Looking further back, the three-year price return was approximately -2.82%.

Total Return is a different measurement because it includes the impact of distributions (the cash paid out to investors). For the last year, the one-year total return was approximately -8.70%. The YTD total return was approximately -7.52%. Interestingly, the three-year total return was positive at approximately 15.87%.

To give you an idea of the price movement, the current price is $9.98. The estimated price from roughly one year ago was approximately $11.62.

Income and distribution explanation

MQY provides regular cash payments to investors. The distribution yield is approximately 6.97%. This means the amount of cash distributed is about 6.97% relative to the ETF's price. The fund has made 12 distributions over the last year, and it usually pays out on a monthly basis. Most of these payments have occurred on Fridays.

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

Some investors look for "NAV erosion," which refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, we can look at "price erosion," which is the decline in the market price of the shares. The fund has an erosion-risk score of 75, which is labeled as "Mild price erosion." This indicates a mild level of risk regarding the decline in share price. There is no severe erosion-risk flag for this ETF.

Pros

• Regular Income: The fund provides a distribution yield of approximately 6.97% with a monthly frequency.

• Three-Year Total Return: While the share price has declined over three years, the total return (which includes distributions) was positive at approximately 15.87%.

Cons

• Share-Price Decline: The ETF has experienced negative price returns over the last year and year-to-date.

• Five-Year Performance: The five-year total return was approximately -18.40%.

Beginner takeaway

MQY offers a monthly distribution yield of about 6.97%, which can provide regular cash. However, investors should note that the share price has been declining recently. When researching, always distinguish between the cash you receive (distribution yield) and the actual change in your investment's value (total return).