EVMO: EATON VANCE MORTGAGE OPPORTUNITIES ETF
ETF Education Report: Eaton Vance Mortgage Opportunities ETF (EVMO)
What this ETF is trying to do
The Eaton Vance Mortgage Opportunities ETF (EVMO) is an exchange-traded fund that focuses on mortgage-related investments. Based on its top holdings, the fund includes items like Federal Home Loan Mortgage Corp and Federal National Mortgage Association. It holds a total of 188 different holdings, though the list provided below only shows the largest ones.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For EVMO, the one-year price return was approximately -4.94%. The year-to-date (YTD) price return was approximately -5.17%.
• Total Return: This includes the share price change plus any cash distributions paid out. The one-year total return was approximately -0.03%, and the YTD total return was approximately -1.48%.
To give you an idea of price movement, the current price is $48.11. The estimated price from roughly one year ago was approximately $50.61.
Income and distribution explanation
Some investors look for ETFs that pay regular cash, known as distributions. EVMO has a distribution yield of approximately 5.26%. This means the cash paid out is about 5.26% of the ETF's price. These distributions usually happen monthly, with 12 payments made over the last year. Most of these payments have been sent out on Fridays.
It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" is a term used to describe a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not always the same thing.
StockValueFinder uses an erosion-risk score to measure this risk. EVMO has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag for this ETF.
Pros
• The fund provides a regular monthly distribution.
• The erosion-risk score suggests the fund's value has been relatively stable or moving sideways rather than dropping sharply.
Cons
• The share price has seen a decline over the last year and year-to-date.
• The total return has been negative for both the one-year and year-to-date periods.
Beginner takeaway
When looking at EVMO, it is helpful to distinguish between the cash you receive from distributions and the actual price of the shares. While the fund pays a yield of about 5.26%, the share price itself has decreased recently. Always remember that high yields can exist even when the share price is falling.
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Top Holdings (Partial List):
• FEDERAL HOME LOAN MORTGAGE CORP. 5.5%: 6.45%
• (Unnamed Holding): 5.22%
• (Unnamed Holding): 3.31%
• FEDERAL NATIONAL MORTGAGE ASSOCIATION 6%: 1.80%
• NYKREDIT REALKREDIT A/S 4%: 1.54%
• FHLMC 5.5%: 1.26%
• MORGAN STANLEY INSTL LQUDTY GOVT INSTL: 1.24%
• (Unnamed Holding): 1.06%
• CFMT 2025-AB3 LLC 0%: 1.04%
• RMF BUYOUT ISSUANCE TRUST 6%: 0.91%
*Holdings are subject to change over time.*
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | FEDERAL HOME LOAN MORTGAGE CORP. 5.5% | n/a | 6.45% |
| 2 | n/a | n/a | 5.22% |
| 3 | n/a | n/a | 3.31% |
| 4 | FEDERAL NATIONAL MORTGAGE ASSOCIATION 6% | n/a | 1.80% |
| 5 | NYKREDIT REALKREDIT A/S 4% | n/a | 1.54% |
| 6 | FHLMC 5.5% | n/a | 1.26% |
| 7 | MORGAN STANLEY INSTL LQUDTY GOVT INSTL | MVRXX | 1.24% |
| 8 | n/a | n/a | 1.06% |
| 9 | CFMT 2025-AB3 LLC 0% | n/a | 1.04% |
| 10 | RMF BUYOUT ISSUANCE TRUST 6% | n/a | 0.91% |