Understanding the XTRACKERS Municipal Infrastructure Revenue Bond ETF (RVNU)

What this ETF is trying to do

The XTRACKERS Municipal Infrastructure Revenue Bond ETF (ticker: RVNU) is an exchange-traded fund. While the specific holdings are not listed in this report, this type of ETF generally focuses on municipal infrastructure revenue bonds.

What the numbers show

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

• Price Return: This only measures how much the share price has changed.

• Total Return: This includes both the change in share price AND any cash distributions (dividends) paid out to investors.

Here is what the data shows for RVNU:

• Year-to-Date (YTD): The price return is approximately -5.46%. However, the total return is approximately -2.78%.

• One Year: The price return was approximately -5.92%, while the total return was approximately -2.41%.

• Three Year: The price return was approximately -0.56%, but the total return was a positive 9.91%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was $24.66. The current price is $23.20.

Income and distribution explanation

Some investors look for ETFs that pay regular cash. This is called the distribution yield. For RVNU, the distribution yield is approximately 3.90%.

The ETF has paid out trailing distributions of approximately $0.91 per share. These payments happen frequently; the data shows 12 payments over the last year, usually occurring on a monthly basis. Most of these payments have been made on Mondays.

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

NAV erosion explanation

"NAV" stands for Net Asset Value, which is essentially the value of everything the ETF owns. NAV erosion happens when the value of those underlying assets declines over time.

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

Pros

• The ETF provides regular monthly distributions.

• Over a three-year period, the total return was positive (9.91%), even though the share price itself was slightly down.

Cons

• The share price has seen a decline over the last year and year-to-date.

• The five-year total return is negative at approximately -6.77%.

Beginner takeaway

When studying RVNU, notice the difference between the share price and the total return. While the share price has dropped recently, the total return is often higher because it includes the cash distributions paid to investors. Always look at both numbers to get a full picture of how an ETF is performing.