A sound investment process and strong management team underpin Eaton Vance Short Dur Muncpl Inc ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's sensible investment philosophy earns it a High Process Pillar rating. The management team's considerable industry experience earns it an Above Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Morningstar's evaluation of this fund's process seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle. Eaton Vance Short Dur Muncpl Inc ETF earns a High Process Pillar rating.    The most substantial contributor to the rating is its parent firm's excellent long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.4 stars. The parent firm's five-year risk-adjusted success ratio of 62% also influences the rating. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. Their compelling success ratio suggests that the firm does well for investors and that this fund may benefit from that. 

 The investment strategy as stated in the fund's prospectus is as follows: 


The investment seeks to provide current income exempt from regular federal income tax.  Under normal circumstances, the fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in municipal securities, and the interest on which is exempt from regular federal income tax.

 This strategy's 12-month yield is 3.5%, higher than its average peer's 2.5%. Higher yields tend to indicate higher credit risk.

High

Process

Eaton Vance Short Dur Muncpl Inc ETF earns an Above Average People Pillar rating. The number one contributor to the rating is its parent firm's excellent long-term risk-adjusted performance, as shown by the firm's average ten-year Morningstar Rating of 3.4 stars. The size of the portfolio management team also supports the rating. With four portfolio managers, the fund is reasonably well-resourced. 


None of the managers here invest any money in the strategy, which is disappointing, as such investments help align managers' interests with fundholders.

Above Average

People

Morgan Stanley Investment Management, the asset-management arm of Morgan Stanley MS, has made progress in integrating Eaton Vance's capabilities, but there remains more to be done. It retains its Average Parent rating.
Since acquiring Eaton Vance in March 2021, MSIM has been conservative in its approach to the merger. The firm kept Eaton Vance's legacy equity team a distinct platform from MSIM's own substantial capabilities, and it now offers several funds with potentially competing mandates. On the other hand, it moved relatively quickly to centralize the two legacy firms' fixed-income platforms, though several team leaders retired or departed the firm over 2021 and 2022. 
Although Counterpoint Global's concentrated growth strategies, historically among MSIM's largest offerings, have struggled through 2021 and 2022, some of Eaton Vance's boutiques, including value-equity shop Atlanta Capital, help create a more-diversified lineup. MSIM has leveraged Calvert's substantial experience in sustainable investing to launch a series of Calvert-branded strategies both in the United States and Europe, and Parametric allows MSIM to compete in the fast-growing area of customized separate accounts. The firm has yet to demonstrate, however, that it has leveraged its increased size and scale to streamline and improve its operations or to systematically lower fees for its investors.

Average

Parent

Eaton Vance Short Duration Municipal Income ETF

EVSM is an actively managed fund that invests in USD-denominated tax-exempt municipal bonds, rated investment grade and with a portfolio maturity of less than three years.

Ongoing market volatility, uncertainty regarding inflation, and rate hikes keep many investors camped in short duration or cash. Investors looking to broaden their short-duration exposures should look to municipal bonds for the tax benefits they offer.

EVSM: Short Duration With Income Tax Benefits

Calvert US Large-Cap Core Responsible Index Etf

Eaton Vance Intermediate Municipal Income ETF

Eaton Vance Total Return Bond ETF

On Monday, Morgan Stanley Investment Management added two new ETFs to their extensive fund portfolio. The Eaton Vance Total Return Bond ETF (NYSE Arca: EVTR) and the Eaton Vance Short Duration Municipal Income ETF (NYSE Arca: EVSM) were both converted from existing mutual funds into the ETF wrapper.

Morgan Stanley Converts 2 Mutual Funds Into Active ETFs

NEW YORK--(BUSINESS WIRE)--Morgan Stanley Investment Management (“MSIM”) today announced it has completed the conversion of two fixed income mutual funds to exchange-traded funds (“ETFs”). With these two additions, MSIM has introduced 14 ETFs since the launch of the ETF platform last year and has more than $1 billion in assets under management. The below two strategies are available as ETFs as of today: Mutual Fund ETF ETF Ticker MSIFT Core Plus Fixed Income Portfolio Eaton Vance Total Return B.

News for Eaton Vance Short Duration Municipal Income ETF ETF (EVSM)