ETF Education Report: Nuveen Virginia Quality Municipal Income Fund (NPV)

What this ETF is trying to do

The Nuveen Virginia Quality Municipal Income Fund (NPV) is an ETF listed on the NYSE. While the specific investment goals are not detailed in the data, it is categorized as an ETF that focuses on municipal income.

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 only measures how much the share price has gone up or down.

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

For NPV, the numbers show different trends depending on how much time has passed:

• Year-to-Date (YTD): The price return is approximately -12.01%, while the total return is approximately -7.41%.

• One Year: The price return is approximately -15.82%, while the total return is approximately -9.88%.

• Three Years: The price return is approximately -3.66%, but the total return is a positive 16.97%.

To visualize the price change, an investor could look at the estimated price from roughly one year ago, which was $11.57. The current price is $9.74.

Income and distribution explanation

This ETF provides regular cash payments, known as distributions. The distribution yield is approximately 7.86%. These payments usually happen monthly, with Friday being the most common day for a distribution to occur. Over the last 12 months, the trailing distributions were $0.766 per share.

It is important to remember that a high distribution yield does not mean the investor earned that same percentage as their total return. Total return is the most complete way 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 declines. StockValueFinder uses an erosion-risk score to measure this risk.

NPV has an erosion score of 55, which is labeled as "Moderate price erosion." This indicates a moderate level of risk regarding price deterioration. However, there is no "severe erosion-risk flag" for this fund.

Pros

• The ETF offers a distribution yield of approximately 7.86%.

• Over a three-year period, the total return was positive at approximately 16.97%.

Cons

• The one-year price return has been negative (approximately -15.82%).

• The fund shows a moderate erosion-risk score of 55.

Beginner takeaway

When looking at NPV, it is helpful to distinguish between the cash income (distributions) and the share price. While the fund provides regular monthly income, the share price has seen declines over the last year. Always look at the total return to get a full picture of how an ETF is performing.