Eaton Vance High Yield ETF

EVHY

Market cap $21.4M

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.

Investors increasingly seek refuge in bonds at the end of the first quarter as economic uncertainty grows. With recession and inflation risks on the rise, bonds hold strong appeal for their low correlations to equities.

Through most of the year, high-yield bonds have enjoyed a good run as an attractive means for locking in strong income. Even though the overall outlook for 2025 may seem murky, the environment still could support investing in junk bonds.

Now that the Fed's interest rate cutting cycle has finally begun, investors should take a moment to reassess their fixed income portfolios.  Given that bond yields still remain highly competitive, investors have a good opportunity to take advantage of stronger bond exposure before yields drop.

With a potential rate cut from the Federal Reserve approaching, investors would do well to assess their bond portfolio.  High yield bonds, also known as junk bonds, have generally had a strong year so far, buoyed by continued growth in the economy.

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.

In the world of corporate bonds, there's either investment-grade or non-investment-grade debt, also known as a junk bond. Junk-rated corporates typically earn that dubious status because of debt burdens and other balance sheet woes at issuing firms.

Is now the time for adding some more income to portfolios? Investors are facing growing uncertainty as a higher for longer interest rate regime appears more likely than ever.

The latest remarks from the Federal Reserve are reinforcing the case for high yield bonds. On Wednesday, Federal Reserve Chair Jerome Powell indicated that the Fed is sticking to the current plan and keeping rates steady for now.

Morgan Stanley Investment Management's lineup of ETFs has grown to over half a billion dollars in assets since their launch last year. The firm entered the ETF space one year ago with the launch of six Calvert ETFs.