What this ETF is trying to do

The Madison Short-Term Strategic Income ETF (MSTI) is designed to provide investors with income. It focuses on short-term strategic income, which generally means it looks for ways to earn money over shorter periods of time.

What the numbers show

As of October 9, 2026, the share price was $19.82. To understand how the ETF has performed, we look at two different types of returns: price return (the change in the share price) and total return (which includes the share price change plus the cash distributions paid to investors).

• Year-to-Date (YTD): The price return is -3.37%, while the total return is -0.02%.

• One Year: The price return is -4.11%, but the total return is 1.12%.

• Three Year: The price return is -0.48%, while the total return is 16.44%.

An estimated price from roughly one year ago was $20.66. If you had invested $10,000 based on that estimated price, the price-only decline of -4.11% would mean your shares were worth approximately $9,589 before counting any cash distributions.

Income and distribution explanation

This ETF usually pays out distributions monthly. Over the last 12 months, it made 12 payouts. The distribution yield is approximately 5.47%.

It is important for beginners to know that a high distribution yield alone can be misleading. A yield tells you how much cash the ETF is paying out relative to its price, but it does not guarantee that the total investment is growing.

NAV erosion explanation

"NAV erosion" happens when the actual value of the assets inside an ETF drops over time, often causing the share price to fall permanently.

For MSTI, the erosion-risk score is 94, and the erosion severity is labeled as "good." The erosion label is "Stable / sideways," and the severe erosion-risk flag is false. This suggests that the fund has not triggered warnings for substantial price deterioration.

Pros

• Positive Total Returns: While the share price has declined over the last year and three years, the total returns (which include distributions) have remained positive.

• Consistent Income: The fund has a history of monthly payouts.

• Stability: The erosion-risk measurements indicate the fund is currently stable.

Cons

• Price Decline: The share price has fallen over the short and long term (YTD, one year, and three years).

• Negative Price Returns: Investors who only look at the share price without including distributions would see a loss.

Beginner takeaway

MSTI is an example of an ETF where the share price and the total return move in different directions. While the share price has gone down, the cash distributions have helped the total return stay positive. Income investors care about "principal stability," which means they want to earn cash without seeing their original investment disappear.