ETF Education Report: Cohen & Steers Quality Income Realty Fund Inc (RQI)

What this ETF is trying to do

RQI is an ETF listed on the NYSE. While the specific investment strategy isn't detailed in the data, its name suggests it focuses on real estate income.

What the numbers show

It is important to understand that "price return" and "total return" are two different things. Price return only tracks how the share price changes. Total return includes both the price change and the cash distributions paid out to investors.

• Year-to-Date (YTD): The price return is approximately -0.44%, meaning the share price has dropped slightly this year. However, the YTD total return is 6.18%.

• One Year: The one-year price return was approximately -9.04%. When including distributions, the one-year total return was 0.10%.

• Three Year: The three-year price return was approximately 1.97%, while the three-year total return was much higher at 31.55%.

To visualize the price change, an investor's share price was estimated to be $12.50 roughly one year ago, compared to the current price of $11.37.

Income and distribution explanation

This ETF has a distribution yield of approximately 10.38%. This number describes the cash distributions relative to the ETF's price. Distributions are usually paid monthly, with Tuesday being the most common day for payments. In the last 12 months, there were 13 distributions totaling $1.18 per share.

A high distribution yield provides cash income, but it is not the same as total return. Investors should look at the total return to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. StockValueFinder uses an "erosion-risk score" to measure this risk. RQI has an erosion score of 75, which is labeled as "mild price erosion." This means there is a mild risk of price deterioration, but it has not triggered a "severe erosion-risk flag."

Pros

• The ETF provides a high distribution yield of approximately 10.38%.

• The three-year total return has been positive at 31.55%.

Cons

• The share price has seen declines, such as the approximately -9.04% one-year price return.

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

Beginner takeaway

When looking at ETFs like RQI, remember that a falling share price is different from the total amount of money you might earn. While the share price has gone down in certain periods, the total return (which includes cash payments) tells a different story. High yields can provide regular cash, but they do not guarantee that the share price will stay stable.