What this ETF is trying to do

The Nomura Tax-Free USA Short Term ETF (STAX) is an exchange-traded fund. While the specific holdings were not supplied, its name indicates it focuses on short-term, tax-free investments in the USA.

What the numbers show

As of October 9, 2026, the share price of STAX was $24.79.

When looking at performance, it is important to understand the difference between price return and total return. Price return only looks at the change in the share price. Total return includes both the share-price change and the distributions (cash payments) paid to investors.

• Year-to-Date (YTD): The price return is -2.63%, but the total return is -0.35%.

• One-Year: The price return is -2.94%, while the total return is 0.14%.

To put this in perspective, the estimated price from roughly one year ago was $25.54. If you had invested $10,000 based on that estimated price, the price-only decline would have reduced that amount to approximately $9,706.40. However, the total return figure shows that distributions helped offset some of that price decline.

Income and distribution explanation

STAX usually pays distributions monthly. Over the last 12 months, it made 12 payments totaling $0.79 per share. This results in a distribution yield of approximately 3.20%.

For new investors, it is important to remember that a high distribution yield alone can be misleading. A fund can pay out cash while its share price falls. Investors generally care about "principal stability," which means they want the original amount they invested to stay steady even while they collect income.

NAV erosion explanation

NAV erosion happens when the underlying value of a fund's assets drops over time, often leading to a permanently lower share price.

STAX has an erosion-risk score of 94, which is labeled as "Stable / sideways" with "good" severity. Additionally, the severe erosion-risk flag is false, meaning the fund's price trend and score did not trigger a severe warning.

Pros

• Positive Total Return: While the share price fell over the last year, the total return (which includes distributions) was slightly positive at 0.14%.

• Stable Risk Score: The erosion-risk score suggests the fund's price has been stable or moving sideways.

• Regular Income: The fund provides consistent monthly distributions.

Cons

• Negative Price Return: The share price has declined both year-to-date and over the last 12 months.

• Limited Data: Three-year performance data was not supplied.

Beginner takeaway

STAX is a fund that pays monthly income. Over the last year, the share price went down, but the cash distributions were enough to make the total return slightly positive. It currently shows a "good" erosion-risk score, suggesting the price is not in a severe downward spiral.