Morgan Stanley ETF Trust (EVLN)EVLN

Overview of Eaton Vance Floating-Rate ETF (EFTF)

Profile:

EFTF is an actively managed ETF that invests in U.S. dollar-denominated floating-rate senior loans and other floating-rate debt instruments. It seeks to provide current income and capital appreciation. The ETF does not track a specific index.

Objective:

The primary investment goal of EFTF is to maximize total return, consisting of current income and capital appreciation.

Issuer:

Eaton Vance Management is a global investment management firm with over $500 billion in assets under management. The firm has a long history and a strong reputation for its investment expertise.

Reputation and Reliability: Eaton Vance has been in business since 1924 and is known for its strong investment track record.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income markets.

Market Share:

EFTF has a market share of approximately 1.5% in the senior loan ETF category.

Total Net Assets:

As of November 8, 2023, EFTF has approximately $2.2 billion in total net assets.

Moat:

Eaton Vance has a strong brand recognition and a long history of managing fixed income assets. The firm also has access to a proprietary research platform and a team of experienced portfolio managers.

Financial Performance:

Since inception (May 2014), EFTF has generated an annualized return of 4.5%. This compares favorably to the Bloomberg US Corporate Floating Rate Index, which has returned 4.2% over the same period.

Benchmark Comparison: EFTF has consistently outperformed its benchmark, the Bloomberg US Corporate Floating Rate Index.

Growth Trajectory:

The senior loan market is expected to grow in the coming years, driven by factors such as low interest rates and increased demand for floating-rate assets. This bodes well for EFTF's growth potential.

Liquidity:

EFTF has an average daily trading volume of approximately $5 million. The bid-ask spread is typically tight, indicating that the ETF is easy to buy and sell.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Interest rate movements
• Economic growth
• Creditworthiness of borrowers

Competitors:

Key competitors of EFTF include:

• Invesco Senior Loan ETF (BKLN)
• SPDR Blackstone Senior Loan ETF (SRLN)
• Xtrackers Floating Rate Corporate Loan ETF (XFLT)

Expense Ratio:

EFTF has an expense ratio of 0.55%.

Investment Approach and Strategy:

The ETF invests in a diversified portfolio of senior loans and other floating-rate debt instruments. The portfolio is actively managed by the portfolio managers, who seek to identify opportunities to generate attractive returns.

Composition: The ETF holds a variety of senior loans and other floating-rate debt instruments.

Strategy: The ETF's strategy is to actively manage the portfolio to maximize total return. The portfolio managers use a bottom-up approach to select individual investments.

Key Points:

• Actively managed ETF that invests in U.S. dollar-denominated floating-rate senior loans and other floating-rate debt instruments.
• Seeks to provide current income and capital appreciation.
• Managed by a team of experienced portfolio managers.
• Has a strong reputation and a long history.

Risks:

• Interest rate risk: The value of the ETF's investments may decline if interest rates rise.
• Credit risk: The ETF's investments are subject to the risk that the borrowers may default on their obligations.
• Liquidity risk: The ETF's investments may be difficult to sell in a timely manner, especially during periods of market stress.

Volatility: The ETF has historically exhibited moderate volatility.

Market Risk: The ETF's investments are subject to various market risks, including interest rate risk, credit risk, and liquidity risk.

Who Should Consider Investing:

EFTF is suitable for investors seeking current income and capital appreciation from a portfolio of floating-rate senior loans and other floating-rate debt instruments. The ETF is also suitable for investors who believe that interest rates are likely to rise in the future.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors, including financial health, market position, and future prospects, EFTF receives a 7 out of 10 rating. The ETF benefits from a strong issuer, a solid track record, and a favorable market outlook. However, investors should be aware of the risks associated with the ETF, including interest rate risk, credit risk, and liquidity risk.

Resources and Disclaimers:

• Eaton Vance website: https://www.eatonvance.com/individual/etfs/etf-detail/?etf=eftf
• ETF.com: https://etf.com/EFTF
• Morningstar: https://www.morningstar.com/etfs/arcx/eftf/quote

This information is provided for general knowledge and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.