BondBloxx ETF Trust IRM TaxAware Intermediate Duration (TXXI)

What this ETF is trying to do

TXXI is an Exchange Traded Fund (ETF) traded on the NYSE. Based on its name, it focuses on intermediate-duration bonds with a tax-aware strategy.

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 measures only the change in the share price.

• Total Return: This includes both the share price changes and any cash distributions (dividends) paid out.

For TXXI, the numbers show a decline in both areas:

• Year-to-Date (YTD): The price return is approximately -5.27%. However, the total return is higher at approximately -2.84%.

• One Year: The price return is approximately -4.75%, while the total return is approximately -1.40%.

To visualize this, we can look at an estimated price from roughly one year ago. The price was approximately $50.32, and the current price is $47.93.

Income and distribution explanation

Some investors look for ETFs that pay out cash regularly. TXXI has a distribution yield of approximately 3.63%. This means the cash distributions are about 3.63% of the current share price. These payments usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean you are making a profit. As seen in the total return numbers above, an ETF can pay out cash even if the overall value of your investment is going down.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the underlying assets) of the fund. While a falling share price can sometimes look like erosion, they are not always the same thing.

StockValueFinder uses an "erosion-risk score" to measure this risk. TXXI has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag for this ETF.

Pros

• The fund provides regular monthly distributions.

• The erosion-risk measurements suggest the fund is currently stable or moving sideways rather than experiencing rapid value loss.

Cons

• Both the share price and the total return have been negative over the last year and year-to-date.

• The income rating grade is a "C."

Beginner takeaway

When looking at TXXI, it is helpful to distinguish between the cash you receive (distribution yield) and the actual change in your investment's value (total return). While this ETF pays monthly distributions, the total return has been negative over the past year. Always look at the total return to get a fuller picture of how an investment is performing.