Understanding the Nuveen Missouri Quality Municipal Income Fund (NOM)

What this ETF is trying to do

The Nuveen Missouri Quality Municipal Income Fund (ticker: NOM) is an ETF traded on the NYSE. While the specific investment goals are not detailed in the data, municipal income funds generally focus on providing income through municipal bonds.

What the numbers show

It is important to understand the difference between price return and total return. Price return only tracks how much the share price changes. Total return includes both the price change and the money paid out through distributions.

Here is what the data shows:

• Year-to-Date (YTD): The YTD price return is approximately -7.72%. However, the YTD total return is -5.67%.

• One Year: The one-year price return was approximately 11.00%. When including distributions, the one-year total return was much higher at approximately 18.90%.

• Three Years: The three-year price return was approximately 8.06%, while the three-year total return was approximately 29.12%.

To visualize the price change over the last year, we can look at an estimated price from roughly one year ago, which was approximately $9.91. The current price is $11.00.

If you had invested $10,000 into this ETF one year ago based on these estimated prices, your investment's share value would have grown to approximately $11,000 before accounting for any cash distributions you received.

Income and distribution explanation

This ETF provides regular cash payments, known as distributions. The distribution yield is approximately 6.89%. This number describes the cash payments relative to the current ETF price.

The fund usually pays out monthly, with Friday being the most common day for these payments over the last year. It is important to remember that a high distribution yield does not guarantee that an investor earned that same percentage as a total return.

NAV erosion explanation

"NAV" stands for Net Asset Value, which is essentially the value of everything the fund owns. NAV erosion happens when the value of the fund's underlying assets decreases over time.

For this ETF, the erosion-risk score is 100, and the erosion label is "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This means the data does not show signs of significant price deterioration related to NAV erosion.

Pros

• The fund has shown a positive one-year total return of approximately 18.90%.

• It offers a distribution yield of approximately 6.89%, providing regular cash flow.

Cons

• The YTD price return is currently negative at approximately -7.72%.

• Total returns for the year-to-date period are also negative at approximately -5.67%.

Beginner takeaway

When looking at ETFs like NOM, always look at both the price return and the total return. A share price might go down, but the total return tells you how much you actually made when including the cash distributions. While high yields can provide income, they do not guarantee that your original investment (your principal) will stay the same value.