ETF Education Report: Nuveen Ohio Quality Municipal Income Fund (NUO)

What this ETF is trying to do

The Nuveen Ohio Quality Municipal Income Fund (ticker: NUO) is an ETF listed on the NYSE. While the specific investment strategy is not detailed in the provided 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 those price changes plus any distributions (cash payments) made to investors.

Based on the data:

• Year-to-Date (YTD): The YTD price return is approximately -0.24%. However, the YTD total return is approximately 0.41%. This shows that while the share price dropped slightly, the total return was positive because of distributions.

• One Year: The one-year price return was approximately -3.58%. The one-year total return was approximately -0.58%.

• Three Years: The three-year price return was approximately -12.75%, while the three-year total return was approximately -2.80%.

To visualize the share price change, we can look at an estimated price from roughly one year ago, which was approximately $13.13. The current price is $12.66. If you had invested $10,000 into this ETF one year ago, your investment's value would have dropped to approximately $9,642 based on the share price alone, before accounting for any cash distributions received.

Income and distribution explanation

This ETF provides regular cash payments. The distribution yield is approximately 3.06%. Over the last 12 months, there were 11 distributions, which usually happen on a monthly basis. While these 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 the fund decreases over time. In this report, we look at an "erosion-risk score."

The NUO has an erosion-risk score of 75, which is labeled as "mild price erosion." This is a measurement of risk, not proof that the Net Asset Value (NAV) has definitely collapsed. A severe erosion-risk flag is not present for this fund.

Pros

• The fund provides regular cash distributions (usually monthly).

• The YTD total return is positive at approximately 0.41%, even though the share price itself has declined slightly.

Cons

• The fund has experienced a share-price decline over the last year and the last three years.

• There is a "mild" erosion-risk score present.

Beginner takeaway

When looking at ETFs that pay income, high yields can sometimes be misleading. It is important to look at both the distribution yield and the total return. Income investors often prefer funds where the share price stays steady or goes up slightly. If a share price drops significantly, it can offset the benefits of the cash distributions received. Always distinguish between the money paid out to you (distributions) and the change in the value of your shares (price return).