Understanding the Cohen & Steers Total Return Realty Fund Inc (RFI)

What this ETF is trying to do

The Cohen & Steers Total Return Realty Fund Inc (ticker: RFI) is an ETF traded on the NYSE. While the specific investment strategy is not detailed in the data, it is categorized as an ETF asset type.

What the numbers show

When looking at an ETF, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price moves. Total return includes both the price movement and any cash distributions paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately -2.17%. However, the YTD total return is 4.17%.

• One Year: The one-year price return was approximately -9.84%, while the one-year total return was approximately -1.96%.

• Three Year: The three-year price return was approximately -0.83%, but the three-year total return was 26.78%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was about $12.00. The current price is $10.81.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 8.88%. This means the amount of cash paid out is high relative to the current share price. These distributions usually happen monthly, with 12 payments recorded over the last year. Most of these payments have occurred on Tuesdays.

It is important to remember that a high distribution yield does not mean the investor earned that percentage as their total return. Total return is the more complete measurement of 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 decreases. StockValueFinder uses an "erosion-risk score" to measure this risk. This ETF has an erosion score of 75, which is labeled as "mild price erosion." While the share price has seen declines in certain timeframes, there is no severe erosion-risk flag for this fund.

Pros

• The ETF has a high distribution yield of approximately 8.88%.

• Over a three-year period, the total return was positive at 26.78%, even though the share price itself was slightly down.

Cons

• The one-year price return and total return were both negative.

• There is a "mild" erosion-risk score of 75.

Beginner takeaway

When looking at RFI, it is helpful to distinguish between the share price and the total return. While the share price has fallen over the last year, the total return includes the cash distributions paid to investors. High yields can provide regular income, but they do not guarantee that the share price will stay stable.