For decades, fixed income investors have been placing their trust in the Bloomberg US Aggregate Bond Index, commonly referred to as the Agg. This index has served as a reliable benchmark for the U.S. bond market. There is indeed nothing inherently wrong with concentrating on the Agg. It offers a comprehensive view of where the investment grade government and corporate bond market stands. However, investors often aspire to surpass these stable benchmarks, especially in markets that are already fully valued. In recent studies, Eaton Vance delves into the intricacies of navigating the present bond market.
Staying Ahead in the Bond Market
To effectively navigate the U.S. bond market and gain an edge over the Agg, investors should turn their attention to the Eaton Vance Total Return Bond ETF (EVTR). This core plus fund not only provides a strong yield but also achieves competitive long-term results. It is benchmarked against the Agg, while the active management team brings an added advantage.The performance of EVTR in both the near-term and long-term is truly remarkable. As of November 21st, 2024, the NAV of EVTR has increased by 9.04% over the past year, whereas the Agg has only seen a growth of 6.22%.Capital growth is not the sole benefit that EVTR currently offers. As of November 20th, 2024, the fund has a 30-day SEC yield of 5.05%.By delving deeper into EVTR, investors can gain a better understanding of why this fund continues to perform so well. The essence of EVTR's portfolio lies in a combination of investment-grade bonds that are typically found in a core strategy.Nevertheless, EVTR does not limit itself to core investments. It actively seeks stronger income and returns by making opportunistic investments in high-yield bonds.As a result, the fund can provide the best of both worlds. It can establish a stable core portfolio guided by the Agg while looking beyond the index for additional outperformance.It is no secret that more and more investors are choosing to adopt this Eaton Vance strategy. According to FactSet data, as of November 11th, 2024, the fund has witnessed over $430 million in inflows over the past three months.For comprehensive news, information, and analysis, visit The ETF Yield Channel.