ETF Education Report: T. ROWE PRICE SHORT MUNICIPAL INCOME ETF (TMNS)

What this ETF is trying to do

The T. Rowe Price Short Municipal Income ETF (ticker: TMNS) is an exchange-traded fund. While the specific investment strategy details are not listed in the provided data, this type of ETF generally focuses on municipal income.

What the numbers show

As of October 6, 2026, the current price of one share is $48.71.

When looking at how the fund has performed this year, it is important to look at two different numbers:

• Year-to-Date (YTD) Price Return: This is approximately -2.88%. This number only tracks how much the share price itself has changed.

• Year-to-Date (YTD) Total Return: This is approximately -0.40%. Total return is a different measurement because it includes both the change in share price and the money paid out to investors through distributions.

Because the total return is a different number than the price return, it shows that the distributions helped offset some of the share-price decline.

Income and distribution explanation

Some investors look at ETFs to receive regular cash payments, known as distributions.

• Distribution Yield: This ETF has a distribution yield of approximately 2.93%. This represents the cash distributions relative to the current ETF price.

• Frequency: The fund usually pays out monthly. In the last 12 months, there were 10 payouts.

• Trailing Distributions: The amount paid out over the last year was approximately $1.43 per share.

It is important to remember that a distribution yield tells you how much cash was paid out, but it is not the same as your total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be related to erosion, they are not the same thing. For this ETF, there is no severe erosion-risk flag present. The data provided does not include an erosion score to measure this risk.

Pros

• The fund provides regular cash distributions, which usually happen on a monthly basis.

• Most of the recent payouts have occurred on Tuesdays.

Cons

• The year-to-date price return has been negative.

• Total return data for one-year and three-year periods was not supplied.

Beginner takeaway

When looking at an ETF like TMNS, it is helpful to distinguish between the share price and the total return. The share price has gone down this year, but the total return (which includes cash payments) is a different figure. Always remember that receiving regular distributions is not the same as seeing your total investment grow.