ETF Education Report: Neuberger Berman Municipal Fund Inc (NBH)

What this ETF is trying to do

Neuberger Berman Municipal Fund Inc (ticker: NBH) is an ETF traded on the AMEX exchange. While specific investment goals are not listed in the data, municipal funds generally focus on providing income through municipal bonds.

What the numbers show

When looking at an ETF, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price moves. Total return includes both the price movement and any cash payments (distributions) made to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately -4.94%. However, the total return is -0.87%.

• One Year: The price return was approximately -8.29%, while the total return was -2.33%.

• Three Years: The price return was approximately -1.03%, but the total return was a positive 17.69%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $10.49, and the current price is $9.62.

Income and distribution explanation

This ETF has a distribution yield of approximately 6.76%. This means the fund paid out about $0.65 in distributions over the last 12 months. These payments usually happen monthly, often on a Friday.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. Total return is the more complete picture of how much value was gained or lost.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. StockValueFinder uses an "erosion-risk score" to measure this risk.

NBH has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk and does not mean the fund's value has definitely collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The fund provides a distribution yield of approximately 6.76%.

• Over a three-year period, the total return was positive at approximately 17.69%.

Cons

• The one-year price return has been negative (approximately -8.29%).

• The five-year total return is approximately -23.19%.

• There is a measurement of "mild price erosion."

Beginner takeaway

When looking at NBH, it is helpful to distinguish between the cash income (distribution yield) and the actual change in share price. While the fund provides regular monthly distributions, the share price has seen declines over the last year. Always look at the "total return" to see how both price changes and distributions work together.