What Is NAV Return?
Net Asset Value is a fund's per-share worth: total assets minus liabilities, divided by shares outstanding, published after each market close. NAV return is the percentage change in that figure over a period. Quoted on its own it is a price-only measure and excludes distributions; quoted as NAV total return it assumes every distribution was reinvested at NAV on its ex-date.
For high-distribution funds the two versions tell very different stories, and the gap is the point. A fund can pay a 70% annualized distribution while its NAV falls 45% over the same year. Price-only NAV return shows the erosion; NAV total return shows what an investor who reinvested actually ended up with. If total return is meaningfully negative while the distribution rate looks spectacular, the payout is being funded out of principal.
Two mechanical details matter when reading NAV returns. Distributions mechanically reduce NAV on the ex-date — a $0.30 payment on a $20 fund drops NAV to $19.70 before any market movement, which is not a loss. And splits or reverse splits change the share count and price without changing value, so any honest NAV series must be split-adjusted. WeeklyYield's YTD figures are price-only and split-adjusted close-to-close, and each fund page also shows a DRIP-adjusted total return so both views are visible side by side.
Frequently asked questions
NAV return usually refers to the price-only change in net asset value. Total return adds reinvested distributions, so it captures the full investor outcome.
Because the cash leaves the fund. A distribution reduces NAV by its per-share amount on the ex-date; it is a transfer, not a loss.
Yes, and it is common among option-income ETFs. That combination means part of the distribution is effectively a return of your own capital.