ETF Education Report: SPDR SSGA My2027 Municipal Bond ETF (MYMG)

What this ETF is trying to do

The SPDR SSGA My2027 Municipal Bond ETF (ticker: MYMG) is an exchange-traded fund. While the specific investment strategy is not detailed in the provided data, the name suggests it focuses on municipal bonds with a target date around 2027.

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 the change in the share price. For MYMG, the year-to-date (YTD) price return is approximately -0.61%, and the one-year price return is approximately -0.55%.

• Total Return: This measures the share price change *plus* any distributions (cash payments) received. For MYMG, the YTD total return is approximately 1.42%, and the one-year total return is approximately 2.23%.

The current price of the ETF is $24.54. Based on an estimated price from roughly one year ago of approximately $24.67, the share price has seen a slight decline. However, because of the distributions, the total return remains positive.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 2.77%. This number describes the cash payments relative to the current ETF price. These payments happen frequently; the data shows 12 distributions over the last year, usually occurring on a monthly basis. Most of these payments have been made on Mondays.

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" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be related to erosion, they are not the same thing.

For MYMG, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This suggests the fund's price movement is currently considered stable by these specific risk measurements.

Pros

• The ETF provides regular monthly cash distributions.

• The total return is positive, even though the share price itself has declined slightly over the last year.

Cons

• The share-price return (price return) has been negative for both the year-to-date and one-year periods.

• The income rating grade is a "C."

Beginner takeaway

When looking at MYMG, notice that the share price has gone down slightly, but the total return is positive. This happens because the cash distributions help make up for the drop in share price. Always look at both the price return and the total return to get a full picture of how an ETF is performing.