Understanding the COLUMBIA MULTI-SECTOR MUNICIPAL INCOME ETF (MUST)

What this ETF is trying to do

The COLUMBIA MULTI-SECTOR MUNICIPAL INCOME ETF, which trades under the ticker symbol MUST, is an exchange-traded fund. While specific holdings are not listed in this report, the name suggests it focuses on municipal income.

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 only measures how much the share price has changed.

• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately -6.89%. However, the total return is higher at approximately -4.50%.

• One Year: The price return was approximately -6.57%, while the total return was approximately -3.37%.

• Three Years: The price return was a slight loss of approximately -0.78%. However, the total return was a gain of approximately 9.29%.

To visualize the price change, the estimated price from roughly one year ago was $20.54. The current price is $19.19.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 3.59%. This number describes the cash paid out relative to the current ETF price. These payments usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a 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. StockValueFinder uses an erosion-risk score to measure this risk.

This ETF has an erosion score of 75, which is labeled as "Mild price erosion." This is considered a mild level of risk. There is no severe erosion-risk flag for this ETF.

Pros

• The three-year total return shows a positive gain of approximately 9.29%.

• The ETF provides regular monthly cash distributions.

Cons

• The one-year and year-to-date price returns have been negative.

• There is a measurement of "mild" price erosion.

Beginner takeaway

When looking at MUST, it is helpful to distinguish between the share price and the total return. While the share price has declined over the last year, the total return is a higher number because it includes the cash distributions paid to investors. Always look at both numbers to get a full picture of how an ETF is performing.