Eaton Vance Floating-Rate Income Trust (EFT)
Frequently Asked Questions About Eaton Vance Floating-Rate Income Trust (EFT)
Does Eaton Vance Floating-Rate Income Trust have any sustainability initiatives?
Eaton Vance Floating-Rate Income Trust takes environmental, social, and governance (ESG) considerations into account as part of the broader Eaton Vance management practices. While the trust primarily focuses on fixed-income assets, Eaton Vance has increasingly integrated ESG criteria into investment analysis, fitting into a long-term focus on responsible investing.
How can I invest in Eaton Vance Floating-Rate Income Trust?
Investing in Eaton Vance Floating-Rate Income Trust can be done through various brokerage accounts, where investors can purchase shares of the trust just like any publicly traded stock. It is advisable to review the fund's prospectus, understand its performance history, and consult with a financial advisor to determine if EFT fits within one’s investment strategy.
How does EFT differ from traditional bond funds?
Eaton Vance Floating-Rate Income Trust differs from traditional bond funds primarily due to its focus on floating-rate loans rather than fixed-rate bonds. This strategy means that the income generated may adjust with changes in interest rates, which can provide a hedge against rising rates, making it less sensitive to interest rate changes than conventional bond funds.
How does the trust generate income for investors?
The trust generates income for its investors primarily through interest payments received from its floating-rate loan portfolio. As interest rates rise, the income from these loans typically increases, resulting in enhanced distributions to shareholders, making the fund attractive during periods of rising rates.
How is the NAV of EFT calculated?
The net asset value (NAV) of Eaton Vance Floating-Rate Income Trust is calculated by taking the total value of the trust's assets, subtracting its liabilities, and dividing this figure by the number of outstanding shares. The NAV is typically calculated daily and is a critical measure for investors evaluating the performance of the trust compared to its market price.
How often does EFT pay dividends?
Eaton Vance Floating-Rate Income Trust typically pays dividends monthly. This regular distribution schedule is designed to provide shareholders with a consistent income stream, aligning with the trust's investment objective of delivering a high level of current income.
Is Eaton Vance Floating-Rate Income Trust suitable for conservative investors?
Eaton Vance Floating-Rate Income Trust may be suitable for conservative investors who prioritize income generation along with capital preservation. However, while it offers reduced interest rate risk through floating-rate loans, investors should carefully evaluate their risk tolerance and investment objectives before investing in this trust.
What are the risks associated with investing in EFT?
Investing in Eaton Vance Floating-Rate Income Trust carries several risks, including credit risk, interest rate risk, and liquidity risk. Floating-rate loans may be exposed to defaults from the underlying borrowers, and changes in interest rates can impact the value of the trust's holdings. Additionally, as a closed-end fund, EFT's shares may trade at a premium or discount to their net asset value (NAV).
What are the tax implications of investing in EFT?
Investing in Eaton Vance Floating-Rate Income Trust may have specific tax implications for investors, as the dividends paid are typically taxable as ordinary income. Moreover, since the trust invests in various debt instruments, investors should be aware of potential capital gains tax when shares are sold for a profit. Consulting a tax advisor is recommended for personalized guidance.
What does Eaton Vance Floating-Rate Income Trust (NYSE:EFT) do?
Eaton Vance Floating-Rate Income Trust (NYSE:EFT) is a closed-end management investment company primarily focused on investing in floating-rate loans and related instruments. The trust aims to provide a high level of current income and capital preservation by investing primarily in senior loans to corporations, which typically have lower interest rate risk due to their floating-rate nature.
What is the dividend yield of Eaton Vance Floating-Rate Income Trust?
The dividend yield of Eaton Vance Floating-Rate Income Trust fluctuates based on its current market price, interest rates, and earnings from its floating-rate investments. Historically, the trust has aimed to provide a competitive yield compared to other fixed-income investments, making it appealing to income-focused investors.
What is the expense ratio of EFT?
Eaton Vance Floating-Rate Income Trust has an expense ratio that reflects the fund's operational efficiency, including management fees and necessary expenses. Investors should review the expense ratio when considering the trust, as lower expenses can contribute positively to overall returns. This information is typically available on the fund's official documentation.
What is the historical performance of EFT?
The historical performance of Eaton Vance Floating-Rate Income Trust has generally reflected its ability to navigate different interest rate environments thanks to its investment in floating-rate loans. Although past performance is not indicative of future results, the trust has aimed to provide stable income and capital appreciation over time, making it a noteworthy option for income-seeking investors.
What is the investment strategy of EFT?
EFT's investment strategy revolves around investing in a diversified portfolio of floating-rate loans, primarily targeting senior secured loans. The management team actively seeks to identify high-quality credits while aiming to manage risk through diversification and credit analysis, focusing on generating income while preserving capital.
What makes EFT a good investment option?
EFT can be seen as a good investment option for those seeking income appreciation amidst rising interest rates due to its strategy of investing in floating-rate loans. Its management team actively curates a diversified portfolio that aims to balance income generation with capital protection, potentially appealing to investors looking for stability in uncertain economic conditions.
What type of investments does EFT hold?
EFTP primarily holds floating-rate loans issued by corporations, which include senior secured loans, and subordinated debt. The trust may also invest in collateralized loan obligations (CLOs) and other related securities, aiming to provide a diversified portfolio that seeks to mitigate interest rate risks while maximizing income.
When was Eaton Vance Floating-Rate Income Trust established?
Eaton Vance Floating-Rate Income Trust was established in 2002. Since its inception, the trust has aimed to deliver income through prudent management of a diversified portfolio of floating-rate debt instruments, catering to investors seeking safer options in varying interest rate environments.
Where can I find more information about Eaton Vance Floating-Rate Income Trust?
More information about Eaton Vance Floating-Rate Income Trust can be found on the company's official website as well as through financial news platforms, investor relations pages, and third-party financial analysis websites. Additionally, shareholders may refer to the trust’s annual and semi-annual reports for detailed financial statements and performance analyses.
Who manages Eaton Vance Floating-Rate Income Trust?
Eaton Vance Floating-Rate Income Trust is managed by Eaton Vance Management, a subsidiary of Eaton Vance Corp. The management team brings significant experience in fixed-income investment strategies, focusing on analyzing credit quality and interest rate movements to optimize returns for trust shareholders.
What is the current price of Eaton Vance Floating-Rate Income Trust?
The current price of Eaton Vance Floating-Rate Income Trust is 12.16
When was Eaton Vance Floating-Rate Income Trust last traded?
The last trade of Eaton Vance Floating-Rate Income Trust was at 7:00 pm EDT on April 3rd, 2025