Eaton Vance's New Floating-Rate ETMF for a Rising Rate Environment

Eaton Vance Management rolled out a new NextShares exchange traded managed fund, or ETMF, to generate high level of current income by tracking float-rate loans.

Eaton Vance recently came out with the Eaton Vance Floating-Rate NextShares (NasdaqGM: EVFTC), which has a 0.73% total expense ratio.

The new fund is managed by Scott H. Page, Vice President of Eaton Vance and BMR, and Craig P. Russ, Vice President of Eaton Vance and BMR.

“For nearly three decades, Eaton Vance has been recognized as one of America’s largest and most experienced loan managers,” Page said in a note. “Investments in floating-rate loans can provide investors with important diversification benefits and protect against the potential risks of rising interest rates.”

EVFTC tries to generate high level of current income by investing in senior floating rate loans of domestic and foreign borrowers. Senior loans typically are of below investment grade quality and have below investment grade credit ratings, which ratings are associated with securities having high risk, speculative characteristics, according to a prospectus sheet.