ETF Education Report: Tortoise Midstream Energy Fund Inc (NTG)

What this ETF is trying to do

Tortoise Midstream Energy Fund Inc (ticker: NTG) is an ETF traded on the NYSE. While the specific investment goal is not detailed in the data, it is categorized as an asset type of ETF.

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 any distributions (cash payments) received.

According to the data:

• Year-to-Date (YTD): The YTD price return is approximately 53.51%. The YTD total return is approximately 66.61%.

• One Year: The one-year price return is approximately 56.30%. The one-year total return is approximately 69.63%.

• Three Years: The three-year price return is approximately 86.51%. The three-year total return is approximately 140.52%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was approximately $34.14. The current price is $53.36. If you had invested $10,000 into the share price alone one year ago, that investment would have grown based on the 56.30% price return.

Income and distribution explanation

This ETF provides cash distributions. The distribution yield is approximately 6.92%. This number describes the cash payments relative to the current ETF price. The fund has made 5 distributions over the last 12 months and usually pays out on a quarterly basis. The trailing distributions are $3.69.

It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment (your principal) will stay the same value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. While a falling market price can look like erosion, they are not always the same thing.

In this case, there is no severe erosion-risk flag present. The erosion score is not available because the fund has a history of stock splits.

Pros

• The ETF has shown positive price returns over the one-year and three-year periods.

• The total return figures are higher than the price return figures, which shows the impact of distributions.

Cons

• There is no data provided regarding the fund's Top Holdings or portfolio exposure.

Beginner takeaway

When looking at ETFs, always distinguish between the share price and the total return. A fund might have a rising share price and also pay out cash, which results in a higher total return. Always check if the total return data is available to get the full picture of how the investment performed.