Eaton Vance Floating-Rate ETF(AMEX:EVLN)

EVLN pursues potential returns by investing in floating-rate credit instruments, such as senior loans, CLO debt tranches, and various forms of floating-rate bonds, as well as corporate debts, with a cap of 20%. The portfolio is diversified across borrowers and industries while employing fundamental analysis to evaluate risk/return characteristics. Factors considered include the issuers financial health, operating history, economic sensitivity, management capability, debt maturity schedules, borrowing requirements, and projected cash flow, as well as ESG factors. Although exposure includes loans and debts of any credit quality, it predominantly targets high-yield securities. Additionally, currency risks and heightened volatility are present due to the funds global exposure. To manage these risks, the fund utilizes derivatives such as futures, swaps, and options to hedge against currency exchange rate and interest rate fluctuations.