Eaton Vance Floating-Rate Income Trust (EFT) Dividend Yield 2024 & History (2024)

FAQs

Eaton Vance Floating-Rate Income Trust (EFT) Dividend Yield 2024 & History? ›

The Fund's primary investment objective is to provide a high level of current income, as a secondary objective the fund may seek capital preservation. Provides broad exposure to the floating-rate loan market, providing diversified exposure to the asset class.

The Fund's primary investment objective is to provide a high level of current income, as a secondary objective the fund may seek capital preservation. Provides broad exposure to the floating-rate loan market, providing diversified exposure to the asset class.

The Fund has adopted a policy to pay common shareholders a stable monthly distribution, and may pay distributions consisting of amounts characterized for federal income tax purposes as qualified and non-qualified ordinary dividends, capital gains distributions and non-dividend distributions, also known as return of ...

An ETF fact sheet is a document that provides detailed information about an ETF. It typically includes information about the ETF's investment objective, investment strategy, holdings, fees and performance. ETF providers often publish fact sheets for each of their ETFs on their websites.

Eaton Vance High Yield ETF

Access a low-cost, transparent and tax-efficient Exchange Traded Fund (ETF) that seeks competitive performance.

Floating rate funds appeal to investors when interest rates are rising since the fund will yield a higher level of interest or coupon payments. Floating rate funds are an attractive investment for the fixed income or conservative portion of any portfolio.

Because they generally invest in the debt of low-credit-quality borrowers, floating-rate funds should be considered a riskier part of your portfolio. Most of the income earned by the funds will be compensation for credit risk.

Briefly, in order to be eligible for payment of stock dividends, you must buy the stock (or already own it) at least two days before the date of record and still own the shares at the close of trading one business day before the ex-date. That's one day before the ex-dividend date.

The current financial health of a company.

If a company is doing well, has done so consistently, and shows signs of growth, these factors are indicative of stocks that will keep paying a dividend.

In order for dividends passed through by a fund to be qualified, the fund must first meet the more-than-60-days requirement for the individual securities paying the dividends. Additionally, the owner of the fund must own the fund shares for more than 60 days.

What are the disadvantages of EFT? ›

For disadvantages, international wire transfers (a form of EFT) can be expensive to send and receive, with fees from the originating and receiving banks, possibly intermediary bank fees, and miscellaneous fees like investigation fees if the wire transfer is lost.

One of the best features of the EFT is its security. While transmitting over the internet involves risk, EFT is generally considered a safer payment method than a traditional paper check.

There is no fee to use the EFT service, although your financial institution may charge transaction fees.

In 2017, Eaton Vance purchased Calvert Investments, which provides mutual funds focused on socially responsible investing. On October 8, 2020, Morgan Stanley announced they were purchasing Eaton Vance for $7 billion. The deal was completed on March 1, 2021.

Eaton Vance is part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.

The deal is good for Morgan Stanley because it will help the bank distribute funds to retail investors since Eaton Vance is the top U.S. distributor of individual separate accounts, Barclays analyst Jason Goldberg said. It may also help grow revenue in an inexpensive way while growing assets, he said.

A floating rate is a certain base rate (usually tied to a benchmark rate such as the U.S. prime rate or LIBOR) plus a margin above that base. So, if a certain debt instrument has a floating rate tied to the LIBOR plus a 6% margin, and LIBOR is at 6%, then the floating rate is 12%.

But there is one area where rising rates can work in investors' favor: floating-rate funds. Most floating-rate funds invest in bank loans that come with adjustable interest rates, which rise and fall with other short-term rates. Morningstar categorizes these funds together in the bank loan category.

Unlike traditional bonds, floating-rate loans do not make a fixed interest payment each payment period. Instead, coupons vary based on prevailing interest rates. The interest rate adjusts or “floats” with market rates, so they carry little to no interest rate risk.