™A fund's trailing payouts divided by its current price can produce a yield that includes income, capital gains or return of capital; inspect the stated methodology.
ETFs & Funds
Distribution yield
A fund’s recent distributions expressed relative to its market price or net asset value under a stated method.
Plain-English context
Put the definition to work.
Read the payout basis: a distribution can include capital gains or return of capital rather than recurring earned income.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — ETF bulletin