MSIM Expands ETF Platform with Eaton Vance High Income Municipal

Morgan Stanley Investment Management (MSIM) has bolstered its ETF platform with the addition of Eaton Vance High Income Municipal (EVYM), a high-yield municipal strategy listed on the Nasdaq. This latest offering complements MSIM's existing lineup of 17 total strategies, which have attracted over $600 million in asset flows to fixed income ETFs since the start of the year. EVYM aims to provide high current income exempt from regular federal income tax by investing at least 80% of its net assets in municipal obligations.



The municipal focus of EVYM caters to the tax-efficiency needs of high-net-worth investors, positioning MSIM competitively in the high-yield municipal bond space. By investing in municipal obligations, the Fund may be susceptible to political, economic, regulatory, or other factors affecting their issuers. However, the interest earned on municipal securities is generally not subject to federal income tax, making them an attractive option for investors seeking to minimize their tax liability.

The management team's extensive experience in the municipals space, combined with the in-demand ETF structure, contributes to EVYM's potential success. The team's deep understanding of the municipal bond market, coupled with the flexibility and liquidity offered by the ETF format, enables EVYM to cater to the unique needs of high-net-worth investors.

Investors should consider several factors when evaluating EVYM's new strategy, including its investment objective, asset allocation, management team and track record, fees and expenses, market conditions, and competition. By doing so, investors can make a more informed decision about whether EVYM aligns with their investment goals and risk tolerance.

In conclusion, the addition of Eaton Vance High Income Municipal ETF (EVYM) to MSIM's platform enhances the firm's offerings in the high-yield municipal bond space and caters to the tax-efficiency needs of high-net-worth investors. The management team's extensive experience in the municipals space, combined with the in-demand ETF structure, positions EVYM for potential success. Investors should carefully consider the fund's features and their own investment objectives before making a decision.