EVLN ETF

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.

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.

EVLN's floating-rate securities offer relatively high current yields but face risks from potential rate declines, limiting future returns and effective duration benefits. The ETF's 0.60% expense ratio is higher than larger funds like FLOT, which offer similar returns with lower costs. Alternatives like EFR provide better exposure to international bonds and currencies, potentially outperforming in a weakening dollar environment.