Share-split context: A reverse split was recorded on Feb 10, 2025 with coefficient 0.25. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: Virtus Convertible & Income Fund (NCV)

What this ETF is trying to do

The Virtus Convertible & Income Fund (NCV) is an exchange-traded fund (ETF) traded on the NYSE. While the specific investment strategy details are not listed in the provided data, the fund's name suggests it focuses on convertible securities and generating income.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This only measures how much the share price has changed.

• Total Return: This includes both the change in share price and the money paid out through distributions.

For NCV, the numbers show a difference between these two:

• Year-to-Date (YTD): The price return is approximately 0.73%, while the total return is much higher at about 8.48%.

• One Year: The price return was a loss of about 0.46%, but the total return was actually a gain of approximately 10.08%.

• Three Year: The price return was about 25.91%, and the total return was approximately 77.47%.

Because this ETF has a history of reverse splits, we use split-adjusted returns to understand its performance. In a reverse split, multiple old shares are combined into fewer new shares, which causes the per-share price to rise mechanically. This report uses split-adjusted data to ensure a fair look at performance.

Income and distribution explanation

This ETF is designed to provide regular cash payments, known as distributions. The current distribution yield is approximately 10.69%. This means the fund has paid out a significant amount of cash relative to its share price. These distributions usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage in total return. You must look at the "total return" figure to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not the same thing.

StockValueFinder uses an "erosion-risk score" to measure this risk. NCV has an erosion score of 94, which is labeled as "Stable / sideways." There is no severe erosion-risk flag for this fund.

Pros

• The fund has a high distribution yield of approximately 10.69%.

• The three-year total return has been strong at approximately 77.47%.

Cons

• The one-year price return was slightly negative at approximately -0.46%.

• There is a history of reverse splits.

Beginner takeaway

For new investors, NCV shows how distributions can make a "total return" look much better than the "price return." Even when the share price stays flat or goes down slightly, the cash payments (distributions) can contribute to a positive overall result. Always distinguish between price movement and total return when evaluating income-focused ETFs.