ETF Education Report: Nuveen New York Quality Municipal Income Fund (NAN)

What this ETF is trying to do

The Nuveen New York Quality Municipal Income Fund (ticker: NAN) is an ETF listed on the NYSE. While specific holdings are not listed in the current data, this type of fund generally focuses on providing income through municipal bonds.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how the share price changes. Total return includes both the price change and the cash distributions paid out to investors.

Based on the data:

• Year-to-Date (YTD): The price return is approximately -9.24%, while the total return is approximately -4.03%.

• One Year: The price return was approximately -11.44%, while the total return was approximately -4.58%.

• Three Years: The price return was approximately 2.00%, while the total return was much higher at approximately 25.68%.

To visualize the price change, an investor could look at the estimated prices. The current price is $10.22. An estimated price from roughly one year ago was approximately $11.54.

Income and distribution explanation

This ETF has a distribution yield of approximately 8.30%. This means the fund pays out cash relative to its share price. The trailing distributions were $0.848 per share, and the fund usually pays these out monthly (12 times a year). Most of these payments have occurred on Fridays.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as total return. Total return is the more complete picture of how the investment performed.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the fund's underlying assets. While a falling share price is not the same thing as NAV erosion, we use "erosion scores" to measure risk. This ETF has an erosion score of 75, which is labeled as "mild price erosion." There is no severe erosion-risk flag for this fund.

Pros

• The fund provides a relatively high distribution yield of approximately 8.30%.

• Over a three-year period, the total return was positive at approximately 25.68%.

• The fund provides regular monthly income.

Cons

• The share price has declined over the last year (a one-year price return of approximately -11.44%).

• The YTD total return is currently negative at approximately -4.03%.

• There is a "mild" erosion-risk score of 75.

Beginner takeaway

When looking at this ETF, don't just look at the high distribution yield. Always compare the price return to the total return to see how much of your value is coming from cash payments versus share price changes. High yields can exist even when the share price is falling.