Eaton Vance Floating-Rate ETF

EVLN

Market cap $1.47B

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.

Looking ahead, concerns about economic impact and inflationary pressures create a complex path for interest rates. Those investors looking for strategies that adapt to a changing rate environment would do well to consider the Eaton Vance Floating-Rate ETF (EVLN).

For many experienced fixed income investors, the barbell strategy is often used to set one's portfolio up for balanced success.  The barbell strategy itself is fairly straightforward.

Approximately two years ago, just before an Exchange conference kicked off, one of the largest asset managers entered into the ETF market. Morgan Stanley Investment Management (MSIM), home to some of the strongest asset management brands, launched their initial suite of ETFs in January 2023.

Time after time, fixed income investors have faced the difficult decision of choosing between bank loans or high yield bonds.  The general wisdom for this debate has been that bank loans can carry lower risk than high yield bonds.

It's certainly a good time to be an investor in Eaton Vance's fixed income strategies.  In the past few weeks, the Eaton Vance Total Return Bond ETF (EVTR) passed $1 billion threshold in assets under management.

While some investors remain fixated on high yield bonds, treasuries, and even munis, they may be missing out on opportunities that bank loans are currently offering.  Recent insights from Eaton Vance broke down the strong investment case supporting both bank loans and CLOs.

Markets have weathered a flurry of catalysts in 2024. These include a surprisingly strong U.S. economy, global election super-cycle, major pivot in rate policy, and continued geopolitical unrest.

The U.S. ETF industry is about to hit a tremendous milestone. Year to date through November 11, $897 billion has flowed into exchange traded funds, according to FactSet data.

Investors have spoken loud and clear — floating-rate loan investing presents an attractive opportunity for yield.  At the very least, they certainly have spoken in support of the Eaton Vance Floating-Rate ETF (EVLN).