What this ETF is trying to do

The Neuberger Berman Energy Infrastructure and Income Fund Inc (NML) is an ETF listed on the AMEX exchange. While the specific holdings are not listed in the current data, this fund is designed to focus on energy infrastructure and provide income to its investors.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only 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 NML, the numbers show growth in both areas:

• Year-to-Date (YTD): The price return is approximately 24.24%, while the total return is higher at approximately 31.82%.

• One Year: The price return is approximately 23.08%, and the total return is approximately 33.36%.

• Three Years: The price return is 50.00%, while the total return is approximately 93.97%.

To visualize the price change, the estimated price from roughly one year ago was $8.58. The current price is $10.56.

Income and distribution explanation

This ETF focuses on providing cash to investors through distributions. The distribution yield is approximately 7.30%. This number describes the cash payments relative to the current ETF price.

The fund usually pays out money monthly, with 12 distributions recorded over the last year. These payments are often made on Mondays. It is important to remember that a high distribution yield does not guarantee the same result as total return, and distributions are separate from the share price.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Some investors worry that high payouts might cause this. However, for NML, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this fund.

Pros

• Strong Total Returns: The total return figures over one, three, and five years show significant growth.

• Regular Income: The fund provides a steady distribution yield that is usually paid out monthly.

• Positive Price Trend: The share price has increased compared to the estimated price from one year ago.

Cons

• No Top Holdings Listed: The current data does not provide a list of the specific companies held within the fund.

• Yield vs. Growth: While the yield is high, investors must always track total return to see if the income is keeping up with price changes.

Beginner takeaway

NML is an ETF that provides both share-price growth and regular cash distributions. When studying this fund, remember to look at the total return rather than just the price change or the yield alone. This gives you a fuller picture of how the investment has performed over time.