Eaton Vance has expanded its active fixed-income offerings with the launch of a mortgage-backed securities (MBS) ETF.
Listed on NYSE Arca, the Eaton Vance Mortgage Opportunities ETF (EVMO) was created through the conversion of the Morgan Stanley Mortgage Securities Trust (MTGDX) mutual fund. The conversion brings a longstanding investment strategy into the transparent and liquid ETF structure. The predecessor fund was incepted in July 1997.
“Via the Eaton Vance Brand, Morgan Stanley has been able to leverage its fixed income expertise to support ETF-minded advisors. We have seen growing demand and supply of active ETFs in 2025 and believe education remains paramount,” Todd Rosenbluth, head of research at VettaFi, said.
Under the Hood of Eaton Vance's New Mortgage-Backed Securities ETF
EVMO is an actively managed fund that aims to provide diversified exposure to the global securitized markets. The ETF’s portfolio includes a variety of securities, such as agency MBS, non-agency MBS, commercial MBS, and other asset-backed securities. Its management team’s approach emphasizes security selection and in-depth collateral analysis to identify opportunities and manage risk.
The fund’s portfolio managers believe that EVMO can serve as an attractive investment-grade alternative to corporate credit. However, it could also fit as a standalone securitized allocation within a broader portfolio.
“We believe agency MBS and other securitized assets can add a diversifying element to investor portfolios, especially those that are heavily exposed to U.S. corporate credit, because they tend to have different risk/return drivers,” Greg Finck, co-head of the Mortgage and Securitized investment team, said in a statement.
EVMO charges 45 basis points, a competitive expense ratio for active management. Furthermore, EVMO brings the total number of ETFs on Morgan Stanley Investment Management’s (MSIM) platform to 18. This includes 10 active fixed-income ETFs.
Finally, the platform, which launched in early 2023, has grown to over $6 billion in assets. It includes other funds such as the Eaton Vance Total Return Bond ETF (EVTR ), Eaton Vance High Yield ETF (EVHY ), and the Calvert Ultra-Short Investment Grade ETF (CVSB )
For more news, information, and analysis, visit VettaFi | ETFDB.
