ETF Education Report: Nuveen Arizona Quality Municipal Income Fund (NAZ)

What this ETF is trying to do

The Nuveen Arizona Quality Municipal Income Fund (ticker: NAZ) is an ETF listed on the NYSE. While the specific investment strategy is not detailed in the provided data, the name suggests it focuses on municipal income.

What the numbers show

It is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes both the price change and the money paid out through distributions.

• Year-to-Date (YTD): The price return is approximately -2.36%, meaning the share price has dropped slightly this year. However, the YTD total return is 2.26%.

• One Year: The one-year price return is approximately -0.54%, while the one-year total return is 5.89%.

• Three Year: The three-year price return is approximately 14.57%, and the three-year total return is 38.29%.

• Five Year: The five-year total return is approximately -4.57%.

To visualize the price change, the estimated price from roughly one year ago was $11.66. The current price is $11.60.

Income and distribution explanation

This ETF provides regular cash payments, known as distributions. The distribution yield is approximately 6.66%. This number describes the cash payments relative to the current ETF price. These distributions usually happen monthly, with 12 payments recorded over the last year. Based on recent data, Friday is the most common day for these payments to occur.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Investors often watch this because they want to ensure their original investment stays stable while they collect income.

For this ETF, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag present.

Pros

• The fund has a high income rating grade of "A."

• The total returns over one year and three years are positive, even when the share price itself was slightly down.

Cons

• The five-year total return is negative, showing a decline over a longer period.

• The share price has seen some minor declines (price deterioration) in the short term.

Beginner takeaway

When looking at an ETF like NAZ, it is helpful to look at both the price and the total return. A falling share price does not always mean a bad outcome if the total return is positive due to distributions. However, high yields can sometimes be accompanied by price declines, so checking the erosion-risk score can help you understand how stable the fund's value has been.