Understanding the T. Rowe Price High Income Municipal ETF (THYM)

What this ETF is trying to do

The T. Rowe Price High Income Municipal ETF (ticker: THYM) is an exchange-traded fund. While the specific investment strategy isn't detailed in the data, "municipal" funds generally focus on bonds issued by local governments.

What the numbers show

As of October 6, 2026, the current price of one share is $47.44. When looking at how the fund has performed so far this year (Year-to-Date), it is important to look at two different numbers:

• YTD Price Return: This shows the change in the share price alone. The price return is approximately -5.30%.

• YTD Total Return: This shows the overall return, which includes both price changes and distributions. The total return is approximately -2.06%.

Because the total return (-2.06%) is higher than the price return (-5.30%), it shows that the distributions helped offset some of the share-price decline.

Income and distribution explanation

Some investors look for ETFs that pay out cash regularly. This is called a "distribution yield." For THYM, the distribution yield is approximately 3.94%. Over the last 12 months, the fund has made 10 distributions. These payments usually happen on Tuesdays.

It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same as your total return. High yields do not guarantee that the value of your investment will stay the same.

NAV erosion explanation

"NAV erosion" is a term used to describe when the underlying value of an ETF's assets decreases over time. While the share price has declined this year, a falling market price does not automatically prove that NAV erosion is happening. In this case, there is no severe erosion-risk flag present, and the erosion score is not available due to insufficient price history.

Pros

• The fund provides regular cash distributions (usually monthly).

• The total return is higher than the price return, meaning distributions are helping to cushion the share-price decline.

Cons

• The fund has experienced a negative price return and a negative total return so far this year.

• The income rating grade is a "D."

Beginner takeaway

When looking at an ETF like THYM, it is helpful to distinguish between the share price and the total return. The share price tells you what a single unit costs, while the total return includes the cash distributions paid to you. Even if an ETF pays a regular yield, the overall value of your investment can still go down.