Share-split context: A reverse split was recorded on Mar 15, 2016 with coefficient 0.5. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: TFI

What this ETF is trying to do

The STATE STREET(R) SPDR NUVEEN ICE MUNICIPAL BOND ETF (Ticker: TFI) is an exchange-traded fund. While the specific holdings are not listed in this report, this type of ETF generally focuses on municipal bonds.

What the numbers show

When looking at an ETF, it is important to know the difference between "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.

For TFI, the numbers show different trends depending on how much time has passed:

• Year-to-Date (YTD): The price return is approximately -7.07%. However, the total return is higher at approximately -4.54%.

• One Year: The price return was approximately -6.70%, while the total return was approximately -3.31%.

• Three Years: The price return was approximately -1.69%, but the total return was positive at approximately 8.34%.

It is also important to note that this ETF has a history of a reverse split. In a reverse split, multiple old shares are combined into fewer new shares. This causes the quoted per-share price to rise mechanically, but it does not increase the actual value of the investment.

Income and distribution explanation

Some investors look for ETFs that pay out regular cash. TFI has a distribution yield of approximately 3.80%. This means the cash distributions are about 3.80% of the current share price. These distributions usually happen monthly, with 12 payments recorded over the last year.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. StockValueFinder uses an "erosion-risk score" to measure this risk. TFI has an erosion score of 75, which is labeled as "Mild price erosion." This is a measurement of risk and not a confirmed fact that the fund's value has collapsed. There is no severe erosion-risk flag for this ETF.

Pros

• The three-year total return is positive at approximately 8.34%, meaning the combination of price changes and distributions has grown over that period.

• The ETF provides regular monthly distributions.

Cons

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

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

Beginner takeaway

When looking at TFI, remember that a high distribution yield is not the same as total return. While the share price may go down, the total return tells a fuller story by including the cash paid out to investors. Always look at both price changes and distributions to understand how an ETF is performing.