Share-split context: A forward split was recorded on Oct 18, 2017 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: ISHARES NEW YORK MUNI BOND ETF (NYF)

What this ETF is trying to do

The ISHARES NEW YORK MUNI BOND ETF (ticker: NYF) is an exchange-traded fund that focuses on municipal bonds from New York. Municipal bonds are loans made to local government entities.

What the numbers show

When looking at this ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and the cash distributions (dividends) paid out to investors.

According to the data:

• Year-to-Date (YTD): The price return is approximately -6.09%, while the total return is approximately -3.84%.

• One Year: The price return is approximately -5.78%, while the total return is approximately -2.76%.

• Three Year: The price return is approximately -0.24%, while the total return is approximately 8.96%.

Because this ETF has a history of forward splits, we use split-adjusted returns. In a forward split, one old share becomes multiple new shares. This makes the price per share look lower, but it does not change how much of the fund you own.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 3.33%. This number describes the cash paid out relative to the current share price. These distributions usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean you are earning that same amount in total return. You must look at the total return to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, or the actual value of the assets held by the fund. While a falling share price can sometimes look like erosion, they are not always the same thing.

For this ETF, the erosion-risk score is 75, which is labeled as "Mild price erosion." This is a measurement of risk and does not mean the fund's value has definitely collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The fund has a history of providing monthly distributions.

• Over a three-year period, the total return was positive at approximately 8.96%.

Cons

• The one-year and year-to-date price returns have been negative.

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

Beginner takeaway

When looking at NYF, notice the difference between the share price and the total return. While the share price has gone down recently, the total return (which includes the cash paid to you) is often a higher number. Always check both numbers to understand how an ETF is performing.