XFLT - EFT: This Is Not A Buy Yet, But Worth Keeping On Your Radar

2025-03-16 08:30:00 ET

Summary

• The Eaton Vance Floating-Rate Income Trust is a fixed-income fund providing broad exposure to the floating-rate loan market.
• The interest rates are set to decline, although the pace of decline is not clear. Generally, this fund's earnings will decline as the interest rates decline due to the nature of underlying holdings.
• This fund should be accumulated when interest rates are low and expected to rise in the future. With that view, this fund is not a buy yet, but worth keeping on your radar.

Introduction:

Eaton Vance Floating-Rate Income Trust ( EFT ) is a closed-end fund that was incepted in Jun. 2004. The fund provides broad exposure to the floating-rate loan market, providing diversified exposure to the asset class. It is diversified into many sectors of loan markets, credit tiers, and issuers. This is a fixed-income fund and thus provides a low correlation to traditional equity markets and has the potential to lower portfolio volatility. The fund uses significant leverage....

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