Flows into fixed income ETFs continue this week on interest rate cut hopes. Investors looking to increase allocations to their bond portfolio would do well to consider the actively managed fixed income ETF suite from Eaton Vance.
Money is currently on the move within the bond market. Over $4.5 billion in net flows went to the top 5 fixed income ETFs in the last week as of 07/18/2024 according to FactSet data. As investors move out on the yield curve and broaden their bond sector exposure, look to Eaton Vance for a range of strategies and duration. Eaton Vance is part of Morgan Stanley Investment Management and has been a pioneer within bonds since 1989.
Short-Duration Bond Opportunities
The recently converted Eaton Vance Short Duration Income ETF (EVSD ) seeks elevated returns throughout a three to five-year market cycle. The fund invests across sectors in corporate bonds, U.S. government bonds, and mortgage and asset-backed securities. The Broad Markets Fixed Income team seeks to keep the fund’s duration to three years or less and employs a top-down and bottom-up investment strategy. EVSD carries an expense ratio of 0.24%.
The Eaton Vance Ultra-Short Income ETF (EVSB ) seeks to maximize income potential while still preserving capital. EVSB invests in investment grade, short-term fixed, variable, and floating-rate bonds that generate income. The Broad Markets Fixed Income team seeks to keep the fund’s duration to one year or less and selects securities across sectors. EVSB has an expense ratio of 0.17%.
Investing in Tax-Advantaged Bonds
The Eaton Vance Short Duration Municipal Income ETF (EVSM ) seeks current income that is exempt from regular federal income tax. The fund converted from a mutual fund earlier this year. EVSM invests across the municipal bond sectors, credit tiers, and states. Eaton Vance brings decades of municipal bond investing experience to bear when actively managing the fund. EVSM seeks to offer a duration of less than three years with an expense ratio of 0.19%.
The Eaton Vance Intermediate Municipal Income ETF (EVIM ) seeks current income that is exempt from regular federal income tax. EVIM invests across municipal bond sectors, credit tiers, and states. The current duration for the fund is 6.04 years as of 07/17/2024 and the fund has an expense ratio of 0.29%.
Floating, High Yield, and Broad Bond Exposure
The Eaton Vance Floating-Rate ETF (EVLN ) seeks high current income. EVLN offers diversified exposure to floating-rate bonds that carry low interest rate risk. The fund utilizes bottom-up credit research alongside risk management when investing. It also invests in high-yield and securitized bonds with a management fee of 0.60%.
The Eaton Vance High Yield ETF (EVHY ) seeks high current income as well as income and capital growth. EVHY offers exposure to high yield with a focus on high quality, high yield bonds. These bonds rate mostly between BB and B. The investment strategy EVHY utilizes is one employed by Eaton Vance for over 20 years. It relies upon risk management as well as integrated research when selecting securities. EVHY carries an expense ratio of 0.48%.
The Eaton Vance Total Return Bond ETF (EVTR ) seeks to provide investors with core plus bond exposure. It does so by investing in a diversified blend of investment-grade bonds. It also invests in higher-yield bonds. The Broad Markets Fixed Income team uses a top-down and bottom-up approach to select securities across sectors. The strategy converted from a mutual fund earlier this year. The fund has an expense ratio of 0.32%.
For more news, information, and analysis, visit The ETF Yield Channel.
