What this ETF is trying to do

The Invesco Trust For Investment Grade New York Municipals (ticker: VTN) is an ETF. While the specific investment goals are not listed in the data, this type of fund generally focuses on municipal bonds from New York.

What the numbers show

When looking at an ETF, it is important to know the difference between price return and total return. Price return only tracks how much the share price changes. Total return includes both the price change and any cash payments (distributions) made to investors.

Here is what the data shows for VTN:

• Year-to-Date (YTD): The price return is approximately -12.77%. However, the total return is higher at approximately -7.84%.

• One Year: The price return was approximately -7.38%, while the total return was approximately -0.35%.

• Three Years: The price return was approximately 4.91%, but the total return was much higher at approximately 28.49%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $10.84, and the current price is $10.04.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 8.19%. This number describes the cash payments relative to the current ETF price. These distributions usually happen monthly, with 12 payments made over the last year.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. Total return is the most accurate way to see how much value was actually gained or lost.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. StockValueFinder uses an erosion-risk score to measure this risk.

VTN has an erosion score of 75, which is labeled as "Mild price erosion." This is a measurement of risk and does not necessarily mean the fund's value has definitely collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• Higher Total Returns over 3 years: The three-year total return of approximately 28.49% is significantly higher than the three-year price return.

• Regular Income: The fund has a history of monthly distributions.

Cons

• Recent Price Declines: The year-to-date price return has been negative.

• Mild Erosion Risk: The fund shows a mild erosion-risk score.

Beginner takeaway

When looking at VTN, remember that the share price and the cash distributions tell different stories. While the share price has gone down recently, the total return (which includes the cash paid out) shows a different picture. Always look at the total return to understand the full performance of an investment, rather than just looking at the distribution yield or the share price alone.