What Is Distribution Rate?
Distribution rate is an issuer-published figure that annualizes a fund's most recent distribution (or a short trailing window) and expresses it as a percentage of the current share price. It's a snapshot, not a long-term average — a single unusually large or small distribution can swing it noticeably.
Distribution Rate vs. SEC Yield vs. CRADY's Run-Rate Yield
See the SEC Yield Guide for how the SEC's standardized 30-day yield differs. CRADY's own annualized yield figure (shown on every ETF page) uses a trailing-90-day actual-payment run-rate instead of a single recent distribution, specifically to smooth out one-off swings that a simple distribution-rate figure can't.
Why It Can Be Misleading
Because distribution rate annualizes a short, recent window, a fund with an unusually large one-time payment can show a temporarily inflated distribution rate that doesn't reflect its typical payment pattern. Comparing several ETFs' distribution rates directly can be misleading for exactly this reason — CRADY's ETF Ranking uses the smoothed run-rate yield instead for that reason. Official, per-distribution rate figures (when published) are tracked on CRADY's Official Distribution Center.
This page is educational and general in nature — it is not investment advice.
Frequently Asked Questions
Related but not identical. Distribution rate typically annualizes one recent distribution; a yield figure (like CRADY's) can instead average actual payments over a longer trailing window, which smooths out one-off swings.
Because distribution rate reacts quickly to a single recent payment. A fund that just made an unusually large or small distribution will show a distribution rate that doesn't reflect its typical pattern.
CRADY's Official Distribution Center tracks per-distribution figures, including distribution rate, when an issuer publishes them alongside an official announcement.