(EVLN) Morgan Stanley Trust - Ratings and Ratios

The Morgan Stanley ETF Trust (EVLN) is designed for investors seeking exposure to floating-rate credit investments, a strategy that becomes particularly appealing in environments where interest rates are on the rise. By investing at least 80% of its net assets in such instruments, the fund offers a targeted approach to navigating fluctuating interest rate landscapes.

Floating-rate credit investments provide a hedge against rising interest rates, as their yields adjust periodically, typically based on a benchmark like LIBOR. This structure helps mitigate the adverse impact of rate hikes on fixed-income securities. The funds portfolio is diversified across various types of floating-rate assets, including senior loans, which are often secured by collateral, offering a higher level of security compared to unsecured debt.

The fund also invests in debt tranches of collateralized loan obligations (CLOs), which pool together various loans and slice them into different risk levels. Additionally, it may hold secured and unsecured bonds, as well as subordinated loans and mezzanine investments, which provide higher returns but come with increased risk. This diversified approach allows the fund to balance risk and return across different segments of the floating-rate market.

With an AUM of approximately $1.29 billion, EVLN is categorized under the Bank Loan ETF sector. It is listed on the NYSE ARCA under the ticker symbol EVLN, making it accessible to a broad range of investors looking to incorporate floating-rate exposure into their portfolios. This ETF is a tool for those aiming to optimize their fixed-income strategies in varying economic conditions.