Distribution yield is a financial metric that measures the income from distributions relative to the value of an investment. It shows how much a fund or portfolio has paid out in distributions each year relative to its price, NAV (Net Asset Value) or level (for portfolios). If an investor is seeking regular income from their investment, a high distribution yield can be desirable as it indicates the potential for higher income generation, but high distribution yields may sometimes be associated with higher risk, such as in the case of high-yield bonds or certain dividend-focused funds. Investors should consider whether the risk level aligns with their risk tolerance and investment objectives. Distribution yield is available for the following security types on YCharts: mutual funds, ETFs, closed end funds, and portfolios.
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