ETF Education Report: Nuveen New York AMT-Free Quality Municipal Income Fund (NRK)

What this ETF is trying to do

The Nuveen New York AMT-Free Quality Municipal Income Fund (ticker: NRK) is an ETF listed on the NYSE. While specific holdings are not listed in the current data, this type of fund generally focuses on municipal income.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only the change in the share price. For NRK, the one-year price return was approximately -9.66%. The year-to-date (YTD) price return was approximately -9.12%.

• Total Return: This is a more complete measure because it includes the impact of distributions (cash payments). For NRK, the one-year total return was approximately -2.24%, and the YTD total return was approximately -3.64%.

Interestingly, while recent short-term returns have been negative, the three-year total return was approximately 21.04%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was $10.15, while the current price is $9.17.

Income and distribution explanation

This ETF has a distribution yield of approximately 8.88%. This means the fund pays out cash relative to its share price. These distributions usually happen monthly, with Friday being the most common day for payments. Over the last 12 months, there were 12 distributions totaling $0.814 per share.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as a total return. You must look at the "total return" figure to see how the share price and distributions worked together.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price is not the same thing as NAV erosion, we use an "erosion-risk score" to measure this risk.

NRK has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk and is not a severe erosion-risk flag.

Pros

• The fund provides regular monthly distributions.

• The three-year total return has been positive at approximately 21.04%.

Cons

• The share price has seen a decline recently, with a one-year price return of approximately -9.66%.

• The fund shows a "mild" erosion-risk score.

Beginner takeaway

When looking at NRK, it is helpful to distinguish between the cash you receive (distribution yield) and the change in the share price (price return). High yields can be helpful for income, but they do not guarantee that the share price will stay the same. Always check the total return to see the full picture of how the investment has performed over time.