What this ETF is trying to do

The UITB ETF focuses on "core intermediate bonds." This means the fund invests in a variety of bonds that typically have a medium amount of time before they are paid back to the lender.

What the numbers show

The current price for one share of this ETF is $44.64. An estimated price from roughly one year ago was $47.61.

When looking at how an ETF performs, it is important to understand two different measurements:

• Price Return: This only measures how much the share price itself has moved up or down. For the last year, the price return was -6.26%.

• Total Return: This measures the overall change, including any cash payments (distributions) made to investors. For the last year, the total return was -2.22%.

Because the total return (-2.22%) is higher than the price return (-6.26%), it shows that the cash distributions helped offset some of the share-price decline.

Looking at the year-to-date (YTD) numbers, the price return is -5.74%, while the total return is -2.95%. However, over a three-year period, the total return was 13.97%.

Income and distribution explanation

This ETF provides cash to investors through distributions. The current distribution yield is 4.44%. These payments are usually made every month (12 times a year). It is important to remember that while these payments provide cash income, they do not guarantee that the value of your original investment will stay the same.

NAV erosion explanation

The data shows an erosion-risk score of 75, which is labeled as "mild price erosion."

"NAV erosion" refers to a situation where the actual value of the assets held inside the ETF starts to shrink. While a falling market price does not always mean the Net Asset Value (NAV) has declined, this fund has a "mild" erosion-risk measurement.

Pros

• The ETF provides regular monthly cash distributions.

• The three-year total return has been positive at 13.97%.

Cons

• Both the share price and the total return have been negative over the last year and so far this year.

• There is a mild erosion-risk score.

Beginner takeaway

When studying an ETF like UITB, always look at both the price return and the total return. The price return tells you how the share price moved, while the total return shows how much you actually gained or lost after including cash payments. A high distribution yield can provide income, but it does not prevent the share price from falling.