While some experts were betting on economic uncertainty affecting 2025’s stock market, things have played out a bit more drastically. Escalating tariff threats and the potential for a recession have sent many investors running for cover. In doing so, swaths of equity stocks are now in the midst of a significant sell-off. On Monday, the market closed down at levels that were $4 trillion below February’s record highs. With equity returns plunging, now may be a great time to pivot towards more fixed income exposure. Fixed income ETFs offer less correlation to the markets while still enabling portfolios to build up competitive income.
EVTR Offers Attractive Potential
Situations like these are where the Eaton Vance Total Return Bond ETF (EVTR ) could emerge as a valuable option. This fund looks to offer significant total return by investing in a diversified selection of fixed income assets.
Reliable fixed income securities make up the lion’s share of this fund’s portfolio. For instance, the top three sector weightings for EVTR lie in treasuries, mortgage-backed securities, and investment grade credit.
All that being said, EVTR still operates as a core-plus fund. In doing so, the fund invests in a tactical selection of high yield securities. This relatively small high yield allocation can help EVTR outperform compared to other fixed income ETFs.
Given the current macroeconomic environment, EVTR’s active management team may be more valuable than ever. With uncertainty reigning supreme for the market and the Fed, actively managed ETFs could help investors stay ahead of any corrections and rallies.
EVTR’s strategy has cemented it as one of the most sought-after funds within Eaton Vance’s lineup. Currently, the fund has over $1.5 billion in assets under management. These tremendous numbers come after the fund accrued over $130 million in net flows over the last month, as of March 10, 2025.
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