Eaton Vance Limited Duration Income Fund (EVV) Stock

The Eaton Vance Limited Duration Income Fund offers a high level of current income with a yield of 9.57%. The fund invests in low-duration assets, which have lower interest rate risk and are more attractive in the current yield curve environment. The fund has outperformed major bond indices and delivered a 2.40% gain year-to-date, but its total return of 5.77% since January 2024 is not as attractive as some equity funds.

Eaton Vance Limited Duration Income Fund provides exposure to debt instruments with a focus on floating rate exposure to limit duration. The fund has a wide discount and offers a diversified portfolio across many holdings and both investment-grade and below-investment-grade credit. The distribution is appealing and gets a boost thanks to the discount; however, coverage is weak and that should be considered.

Eaton Vance Limited Duration Income Fund offers a high level of income with a current yield of 10.04%, which is higher than many other fixed-income funds. EVV's recent performance has been respectable, with shares up 10.60% since late October, outperforming the Bloomberg U.S. Aggregate Bond Index. The fund's portfolio includes a mix of bonds, debt securities, and leveraged loans, providing some protection against interest rate changes.

The Eaton Vance Limited Duration Income Fund specializes in providing a high level of current income to investors with a current yield of 10.75%. The fund's performance has been disappointing, with an 8.85% decline in price, but investors who purchased shares when previously discussed only lost 4.11%. The fund invests primarily in bonds and has a significant allocation to investment-grade debt securities, making it attractive to conservative investors concerned about preserving principal.

EVV is a more compelling fixed-income closed-end fund to invest in due to improved distribution coverage and a wider discount. The fund utilizes leverage and has a multi-sector bond fund approach, with a focus on senior loans and non-investment grade bonds to help give it a "limited duration." The fund's discount is trading well below its historical average, which is the primary factor behind me being less cautious than around a year ago.

The Limited Duration Income Fund is a fixed income closed-end fund (CEF) from the Eaton Vance family, primarily containing leveraged loans, MBS bonds, and high-yield credit. The fund has a 30% leverage ratio on its assets and a low duration, serving it well in a rising rates environment. The fund's main drawback is its tendency to overdistribute, with an actual underlying assets yield of around 6.5% versus the 10% the fund distributes.

The EVV fund aims to provide high current income from a broad portfolio of income-generating securities. The EVV fund earns total returns of 1% to 3% p.a. while paying a 10% distribution yield.