Morgan Stanley Investment Management Launches Eaton Vance Preferred Securities and Income ETF

Morgan Stanley Investment Management (MSIM) announced today the launch of Eaton Vance Preferred Securities and Income ETF (Nasdaq: EVPF), an actively managed ETF that seeks total return and to provide current income and may invest in preferred securities and other income-producing securities. EVPF is the 12th actively managed fixed income ETF and the 19th ETF strategy brought to market since the launch of the MSIM ETF platform in 2023.

“Our ETF platform continues to grow; EVPF delivers investors a unique, actively managed fixed income strategy that expands the range of investment options available,” said Ally Wallace, Global Head of Capital Markets and ETF Strategy, Morgan Stanley Investment Management. “This latest offering is another example of our commitment to enhancing our ETF platform by tapping into MSIM’s broad and distinct investment capabilities. With EVPF, we continue to position our ETF platform as a destination for investors seeking differentiated, active fixed income strategies delivered with the transparency, liquidity and tax efficiency of an ETF.”

The EVPF portfolio management team consists of Kevin Lynyak, James Benadum, CFA, Christopher Santos, CFA, Justin Ziegler, CFA and Alec Schaefer, CFA, along with Brandon Matsui, CFA. EVPF employs a flexible, actively managed investment approach that seeks to build on the inherent income and diversification benefits of the preferred securities asset class. Preferred securities are predominantly investment grade and have historically exhibited lower correlation to traditional fixed income, which may enhance diversification within a broader fixed income allocation. Through a research-driven process and an emphasis on securities that may produce qualified dividend income (QDI), the strategy seeks to deliver attractive after-tax yields relative to traditional fixed income. EVPF has a gross expense ratio of 0.39 percent and a net expense ratio of 0.20 percent.

“We continue to have a constructive outlook for the preferred securities asset class and believe the economic backdrop, moderating inflation and anticipated gradual Fed easing are key factors to watch heading into the second quarter,” said Lynyak. “The structural complexity and relative inefficiency of the preferred securities market creates opportunities for our fundamental, research-driven team to evaluate opportunities that may position us to seek tax-advantaged, income- generating opportunities for investors.”