Morgan Stanley Adds Eaton Vance ETF Targeting High-Income, Diversified Bond Opportunities
Morgan Stanley Investment Management (MISM) announced that the Morgan Stanley Income Opportunities Fund had been converted to the Eaton Vance Income Opportunities ETF (NYSE:XAGG), to further extend the platform of its actively managed fixed income suite of offerings.
The move was presented as part of the firm’s ongoing effort to provide investors with flexible, diversified strategies in the evolving bond market.
This newly launched ETF is designed to provide a high level of current income, with total return as a secondary objective. According to MSIM, the fund will pursue opportunities across a wide range of global fixed-income sectors, with an emphasis on underrepresented areas in many traditional bond portfolios.
MSIM added that the fund’s flexible, multisector approach positions investors to take advantage of a changing market backdrop and potentially seize attractive income opportunities.
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ETF Platform Gains Momentum
The conversion adds to MSIM’s fast-expanding ETF platform, which now comprises 18 funds and more than $9 billion in assets as of Oct 31. Of these, eleven are Eaton Vance-branded actively managed fixed income ETFs, while the remainder consist of funds from the Calvert and Parametric families.
The Eaton Vance-branded offerings include the Eaton Vance Total Return Bond ETF (NYSE:EVTR), Eaton Vance Mortgage Opportunities ETF (NYSE:EVMO), and Eaton Vance High Yield ETF (NYSE:EVHY).
Positioning For A Dynamic Bond Market
The conversion reflects a broader trend among asset managers to convert traditional mutual funds into more liquid, tax-efficient ETFs. With global bond markets continuing to adjust to shifting interest rate expectations, MSIM’s new offering apparently targets those investors seeking diversified income exposure through an actively managed approach.
In the increasingly complex and fast-changing fixed-income landscape, Eaton Vance Income Opportunities ETF’s multisector construction and flexible mandate may prove well-suited for investors seeking a balance between income generation and total return potential.
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