ETF Education Report: BlackRock MuniYield Quality Fund III Inc (MYI)

What this ETF is trying to do

BlackRock MuniYield Quality Fund III Inc (ticker: MYI) is an ETF traded on the NYSE. While the specific investment strategy is not detailed in the provided data, it is categorized as an ETF asset type.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only how much the share price has changed.

• Total Return: This includes both the change in share price and the money paid out through distributions.

For MYI, the numbers show different trends depending on the time frame:

• Year-to-Date (YTD): The price return is approximately -6.99%, while the total return is approximately -2.62%.

• One Year: The price return is approximately -7.76%, while the total return is approximately -1.95%.

• Three Years: The price return is approximately 0.10%, while the total return is much higher at approximately 19.73%.

• Five Years: The five-year total return is approximately -11.19%.

To visualize the price change, the estimated price from roughly one year ago was $10.96. The current price is $10.11.

Income and distribution explanation

Some investors look for ETFs that pay regular cash. This is called a "distribution yield." MYI has a distribution yield of approximately 6.59%. These distributions are usually paid out monthly, with the data showing 12 payments over the last year.

It is important to remember that a high distribution yield does not mean you have earned that much in total return. You must look at the total return to see how the investment performed overall after including those payments.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. While a falling share price is not the same thing as NAV erosion, we use "erosion scores" to measure risk.

MYI has an erosion score of 75, which is labeled as "mild price erosion." This means there is a mild risk measurement regarding price deterioration. However, there is no "severe erosion-risk flag" for this ETF.

Pros

• The ETF provides a distribution yield of approximately 6.59%.

• Over a three-year period, the total return was approximately 19.73%.

Cons

• The one-year price return has been negative (approximately -7.76%).

• The five-year total return is negative (approximately -11.19%).

Beginner takeaway

When evaluating an ETF like MYI, don't look at the distribution yield alone. A high yield can be helpful for cash income, but you should also check the total return to see if the share price is dropping faster than the income is being paid out. Always distinguish between the movement of the share price and the total amount earned including distributions.