ETF Education Report: Nuveen Minnesota Quality Municipal Income Fund (NMS)

What this ETF is trying to do

The Nuveen Minnesota Quality Municipal Income Fund (NMS) is an ETF listed on the NYSE. While the specific investment strategy is not detailed in the data, it is categorized as an asset type for investors looking at municipal income.

What the numbers show

It is important to understand that "price return" and "total return" are two different things. Price return only tracks how the share price moves. Total return includes both the price movement and the cash distributions paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately -12.97%. However, the YTD total return is -8.56%.

• One Year: The price return was approximately -14.14%, while the one-year total return was approximately -8.27%.

• Three Year: The price return was approximately -1.45%, but the three-year total return was a positive 19.78%.

To visualize the price change, if you had invested in this ETF when its estimated price was $11.88 one year ago, the current price is $10.20.

Income and distribution explanation

This ETF provides regular cash payments, known as distributions. The distribution yield is approximately 7.69%. This number describes the cash paid out relative to the current ETF price. These payments usually happen monthly, with Friday being the most common day for distributions.

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

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases. While a falling market price is not the same thing as NAV erosion, we use an "erosion-risk score" to measure this risk.

This ETF has an erosion score of 75, which is labeled as "mild price erosion." There is no severe erosion-risk flag for this fund.

Pros

• The fund has a history of providing regular monthly distributions.

• Over a three-year period, the total return was positive at approximately 19.78%, even though the share price itself saw a slight decline.

Cons

• The fund has experienced recent share-price declines, with a one-year price return of approximately -14.14%.

• The five-year total return is negative, at approximately -17.96%.

Beginner takeaway

When looking at this ETF, it is helpful to distinguish between the cash you receive (distribution yield) and how the actual share price changes (price return). High yields can sometimes exist even when the share price is falling. Always look at the total return to get a fuller picture of how the investment has performed over time.