ETF Education Report: BlackRock MuniYield New York Quality Fund Inc (MYN)

What this ETF is trying to do

The BlackRock MuniYield New York Quality Fund Inc (ticker: MYN) is an ETF traded on the NYSE. While specific holdings are not listed in this report, ETFs like this generally focus on providing income to investors.

What the numbers show

It is important to understand that "price return" and "total return" are two different things. Price return only tracks how the share price moves. Total return includes both the share price movement and the cash distributions paid out to investors.

Here is what the data shows for MYN:

• Year-to-Date (YTD): The price return is approximately -8.17%. However, the YTD total return is -3.77%.

• One Year: The price return was approximately -8.08%, while the one-year total return was approximately -2.19%.

• Three Year: The price return was approximately -3.09%, but the three-year total return was a positive 15.29%.

To visualize the price change, the estimated price from roughly one year ago was about $9.90. The current price is $9.10.

Income and distribution explanation

This ETF has a distribution yield of approximately 6.75%. This number describes the cash distributions relative to the ETF's price. The fund usually pays out money monthly, with 12 distributions recorded over the last year.

Investors often look for high yields to get regular cash, but it is important to remember that a high yield does not guarantee the investment will grow in 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.

For MYN, the erosion score is 75, which is labeled as "mild price erosion." While there has been a decline in the share price, this does not automatically mean the fund's Net Asset Value (NAV) has collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The fund provides a distribution yield of approximately 6.75%.

• Over a three-year period, the total return was positive at approximately 15.29%.

Cons

• The share price has seen a decline recently, with negative price returns for the year-to-date and one-year periods.

• The five-year total return was approximately -17.78%.

Beginner takeaway

When looking at an ETF like MYN, it is helpful to look at both the price and the total return. The share price may go down, but the total return tells you how much you actually earned or lost after including the cash distributions. Always remember that a high distribution yield is not the same thing as a total profit.