What this ETF is trying to do

The Weitz Multisector Bond ETF (WMSB) is an exchange-traded fund that focuses on different types of bonds. Based on its top holdings, the fund holds a variety of assets, including US Dollars and several different mortgage-related securities from organizations like the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. Because it holds many different types of debt, it is considered a "multisector" fund.

What the numbers show

As of October 6, 2026, the current price of WMSB is $24.23.

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 measures only the change in the share price. The YTD price return is approximately -3.98%. This means the price of a single share has gone down by about 3.98% since the start of the year.

• Year-to-Date (YTD) Total Return: This measures the price change plus any distributions received. The YTD total return is approximately -0.23%.

Because the total return (-0.23%) is higher than the price return (-3.98%), it shows that the distributions helped offset some of the loss in the share price.

Income and distribution explanation

This ETF provides cash to investors through distributions. The distribution yield is approximately 4.62%. This number describes the cash paid out relative to the current ETF price. Over the last 12 months, the trailing distributions were approximately $1.12 per share.

The fund usually pays these distributions monthly, and in the last year, there were 11 payouts. Most of these payments have occurred on Thursdays. It is important to remember that a high distribution yield does not guarantee that an investor will earn that same percentage as a total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, which is 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 WMSB, there is no "severe erosion-risk flag" active. However, the data shows that an official erosion score is not available because there is not enough verified price history to provide one.

Pros

• Regular Cash Flow: The fund has a history of frequent distributions, usually occurring every month.

• Diversified Holdings: The fund holds a variety of different assets, including US Dollars and various mortgage-backed securities.

Cons

• Negative Year-to-Date Returns: Both the share price and the total return have been negative so far this year.

• Income Rating: The fund has an income rating grade of "D."

Beginner takeaway

When looking at WMSB, it is helpful to distinguish between the share price and the total return. While the share price has dropped by nearly 4% this year, the total return is much closer to zero because of the cash distributions paid to investors. High yields can provide income, but they do not prevent the share price from falling. Always remember that holdings can change over time.