Understanding the SPDR SSGA My2030 Municipal Bond ETF (MYMJ)

What this ETF is trying to do

The SPDR SSGA My2030 Municipal Bond ETF (ticker: MYMJ) is an exchange-traded fund. While the specific holdings are not listed in this report, ETFs like this generally aim to provide exposure to municipal bonds.

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 measures only the change in the share price. For MYMJ, the year-to-date (YTD) price return is approximately -3.75%. The one-year price return is approximately -3.34%.

• Total Return: This includes the share price change plus any cash distributions (dividends) paid out. The YTD total return is approximately -1.66%, and the one-year total return is approximately -0.51%.

Because the total return numbers are higher than the price return numbers, it shows that the cash distributions helped offset some of the share-price decline.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was $24.74, and the current price is $23.91.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 2.99%. This number describes the cash paid out relative to the current ETF price.

The data shows that these distributions usually happen monthly, with 12 payments made over the last year. Most of these payments have occurred on Mondays. It is important to remember that a distribution yield tells you about the cash income, but it does not guarantee that your original investment will stay at 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. Investors often care about this because they want their principal (the original money they put in) to remain stable.

For MYMJ, 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 that the fund's price movement is not currently showing signs of high-risk erosion.

Pros

• The fund provides regular monthly cash distributions.

• The erosion-risk measurements suggest a stable price trend rather than high risk.

Cons

• Both the share price and the total return have been negative for the year-to-date and one-year periods.

• The top holdings are not currently available in this data set.

Beginner takeaway

When looking at MYMJ, it is helpful to distinguish between the share price and the total return. While the share price has declined, the cash distributions provided a small cushion that made the total return slightly better than the price return alone. Always remember that high yields are not a guarantee of overall profit.