What this ETF is trying to do

BlackRock Municipal Income Fund Inc (MUI) is an ETF listed on the NYSE. While the specific investment strategy is not detailed in the data, the name suggests it focuses on municipal income.

What the numbers show

As of February 14, 2025, the current price of MUI is $12.09. An estimated price from roughly one year ago was approximately $11.73.

When looking at how the fund has performed, it is important to look at two different numbers: the price return and the total return. The price return only tracks the change in the share price. The total return includes both the share price change and any cash distributions paid out to investors.

• One-Year: The one-year price return was 3.07%. However, the one-year total return was higher, at 8.77%.

• Year-to-Date (YTD): The YTD price return is -0.25%, but the YTD total return is 0.66%.

• Three-Year: Over three years, the share price has declined by 10.97% (the price return). However, the three-year total return was positive at 2.71%.

To see how the share price alone affects an investment, imagine you had $10,000 in this ETF one year ago. Based on the estimated starting price and the current price, your $10,000 would have grown to approximately $10,306.73 before adding any cash distributions.

Income and distribution explanation

This ETF provides cash payments called distributions. The distribution yield is 5.46%. Over the last 12 months, the fund paid out a total of $0.66 per share. These payments usually happen monthly.

It is important to remember that a high distribution yield is not the same as a high total return. A high yield tells you how much cash was paid out relative to the price, but it does not guarantee that your total investment grew by that same amount.

NAV erosion explanation

The data shows an erosion-risk score of 75, which is labeled as "mild price erosion."

NAV erosion happens when the value of the underlying assets in the fund decreases. While a falling share price does not always mean the NAV has declined, a "mild" erosion-risk measurement suggests there has been some decline in the share price over time. In this case, the three-year price return shows a significant drop of 10.97%.

Pros

• The fund has provided positive total returns over both one-year and three-year periods.

• It offers regular income through monthly distributions.

Cons

• The share price has experienced a decline over the last three years.

• There is a measurement of mild price erosion.

Beginner takeaway

When looking at ETFs like MUI, don't just look at the share price or the yield alone. The share price tells you if the stock value went up or down, but the total return tells you the full picture by including the cash paid to you. For many investors, seeing a positive total return is more important than just watching the share price.