What this ETF is trying to do

The Virtus NewFleet Multi-Sector Bond ETF (NFLT) is an exchange-traded fund that invests in bonds across different sectors. Its goal is to provide investors with a way to hold a variety of bond assets in one fund.

What the numbers show

As of October 5, 2026, the share price of NFLT was $22.12. To understand how the fund has performed, we look at two different types of returns: price return (the change in the share price) and total return (which includes the share price change plus the cash distributions paid to investors).

• Year-to-Date (YTD): The price return is -3.99%, while the total return is -0.39%.

• One Year: The price return is -4.37%, but the total return is 0.87%.

• Three Year: The price return is 3.61%, and the total return is 22.94%.

For example, if you had invested $10,000 based on the estimated price from roughly one year ago ($23.13), the price-only decline of -4.37% would mean your shares are now worth approximately $9,563, regardless of any cash payments you received.

Income and distribution explanation

This ETF usually pays out distributions monthly. Over the last 12 months, it made 12 payments totaling $1.22 per share. This results in a distribution yield of approximately 5.54%.

It is important for beginners to know that a high distribution yield alone can be misleading. A fund can pay out a high percentage in cash while the share price is falling. Investors should look at the total return to see the full picture.

NAV erosion explanation

"NAV erosion" happens when the net asset value (the actual value of the fund's holdings) declines over time. This is a risk for income investors because they want their original investment (the principal) to stay stable.

NFLT has an erosion-risk score of 94, which is labeled as "Stable / sideways" with "good" severity. Additionally, the severe erosion-risk flag is false, meaning the fund's price trend and score did not trigger a severe warning.

Pros

• Positive Total Returns: Over the one-year and three-year periods, the total returns were positive.

• Consistent Income: The fund has a history of monthly payouts and an income rating grade of "A."

• Stability: The erosion-risk score suggests the fund's price has been relatively stable.

Cons

• Price Decline: The share price has decreased over the last year and so far this year.

• No Holdings Data: There are currently no top holdings listed to show exactly which bonds the fund owns.

Beginner takeaway

NFLT is a bond ETF that provides regular monthly income. While the share price has dipped recently, the total return (which includes those cash payments) has remained positive over the last year. This shows why it is important to track both the share price and the distributions.