Today, Eaton Vance expanded its muni fund lineup with the launch of the Eaton Vance High Income Municipal ETF
EVYM’s objective is to generate a high degree of current income that is exempt from regular federal income tax. The fund is actively managed and operates with a net expense ratio of 39 basis points.
As the fund’s title implies, EVYM primarily allocates its investments toward high yield munis. Generally speaking, the fund traditionally looks for munis that have a maturity of 10 years or longer. All that said, EVYM can invest in securities of any rating or maturity duration.
When it comes to selecting securities for the fund, the Eaton Vance team focuses on a number of factors. These factors include creditworthiness of the issuer, along with the overall value of the security.
Additionally, up to 20% of EVYM’s net assets may be used to invest in other debt obligations. This includes U.S. Treasuries, taxable municipal obligations, and obligations of the U.S. government, among others.
New ETF From Eaton Vance Can Stand Out With Traders
With demand mounting for more municipal bond exposure, investors may wish to look to muni ETFs for ease of access. Notably, EVYM’s high yield portfolio may be able to generate stronger income than a traditional investment-grade strategy
An actively managed portfolio can help EVYM stand out for traders looking to build high yield muni exposure. While high yield fixed income traditionally operates with risk, the flexibility of active management can brunt some of that volatility.
Eaton Vance’s suite of ETFs is offered by Morgan Stanley Investment Management.
“Advisors recently shared with VettaFi favorable sentiment toward actively managed municipal bond strategies,” said Todd Rosenbluth, head of research at VettaFi. “I’m excited for Morgan Stanley to further build out its ETF lineup, offering advisors a range of active products.”
EVYM debuts as the latest municipal ETF to join Eaton Vance’s fund library. One of the larger Eaton Vance ETFs, the Eaton Vance Short Duration Municipal Income ETF (EVSM ), has over $230 million in assets under management.
For more news, information, and analysis, visit The ETF Yield Channel.
