What this ETF is trying to do

The BlackRock MuniHoldings New Jersey Quality Fund Inc (MUJ) is an ETF that focuses on municipal bonds. These are generally loans made to local or state governments. Investors often use these types of funds to earn regular income.

What the numbers show

As of October 9, 2026, the share price of MUJ was $11.26. To understand how the fund has performed, we look at two different types of returns: price return (the change in share price) and total return (which includes the share price change plus distributions).

• Year-to-Date (YTD): The price return is -5.38%, while the total return is -1.53%.

• One Year: The price return is -3.10%, but the total return is 2.23%.

• Three Year: The price return is 12.04%, and the total return is 31.70%.

An estimated price from roughly one year ago was $11.62. If you had invested $10,000 based on that estimated price and looked only at the price return (ignoring distributions), your investment would be worth approximately $9,690 today.

Income and distribution explanation

MUJ pays out distributions usually every month. Over the last 12 months, it made 12 payments totaling $0.65 per share. This results in a distribution yield of approximately 5.75%.

It is important for beginners to know that a high distribution yield alone can be misleading. A fund can pay out a high yield even if its share price is falling. Total return is the better measure of overall performance because it combines both the price movement and the cash paid out.

NAV erosion explanation

"NAV erosion" happens when the underlying value of a fund's assets steadily declines, which can lead to a falling share price over time.

MUJ has an erosion-risk score of 94, which is labeled as "Stable / sideways" with "good" severity. Additionally, the severe erosion-risk flag is false, meaning the fund's price trend did not trigger a severe warning.

Pros

• Positive Long-Term Total Return: The three-year total return is 31.70%.

• Regular Income: The fund provides monthly distributions.

• Stability: The erosion-risk score suggests the fund is currently stable.

Cons

• Recent Price Decline: The share price has fallen both year-to-date and over the last year.

• Long-Term Dip: The five-year total return is -5.62%.

Beginner takeaway

MUJ is designed for investors seeking monthly income. While the share price has declined recently, the total return over the last year remained positive because of the distributions. When evaluating an income fund, always look at the total return rather than just the yield or the share price.