Loading article…
Morgan Stanley’s Eaton Vance Strategic Income Fund (ETSIX) earns a 6.15% SEC yield, outperforms its category by 2.2 points and holds a 34% agency MBS
Morgan Stanley’s Eaton Vance Strategic Income Fund posted a 6.15% subsidized 30‑day SEC yield and retained its Morningstar 5‑star rating, signaling a strong position in a still‑attractive but late‑cycle fixed‑income market【2】.
| At a glance | |
|---|---|
| SEC Yield | 6.15% (subsidized 30‑day) |
| Expense Ratio | 1.46% (net), 1.02% (adjusted) |
| Agency MBS Allocation | ~34% of portfolio (as of Jan 31) |
| Category Outperformance | +2.2 pp annualized over 10 years |
The fund’s A‑share class (ETSIX) has delivered a 10‑year annualized return 2.2 percentage points above its category average, a result that helped secure its 5‑star Morningstar rating【2】. However, the fund’s fees sit in the second‑highest quintile among peers, with a net expense ratio of 1.46% and a net‑adjusted expense ratio of 1.02%【2】. The high‑yielding SEC yield of 6.15% reflects the fund’s emphasis on higher‑yielding, investment‑grade securities while still maintaining a barbell construction that balances quality assets with riskier positions.
Agency mortgage‑backed securities (MBS) represent the fund’s largest holding, accounting for roughly 34% of assets as of January 31【2】. The remaining allocation spans emerging‑market bonds, high‑yield bonds, floating‑rate loans, and a modest 4% exposure to commercial MBS—a sector the manager previously avoided but now sees value in after pandemic‑driven price corrections【2】. Manager Andrew Szczurowski notes that the macro environment for fixed income remains “OK” but is approaching the end of the cycle, prompting active managers to look beyond traditional Treasuries and investment‑grade corporates for opportunities【2】.
The fund’s solid yield and outperformance suggest it remains a viable option for investors seeking income, yet its relatively high fees and reliance on agency MBS mean performance will hinge on how the broader credit market evolves.
Coverage is mostly measured — 259 of 281 reports stay neutral.
Every Monday — the token unlocks, Fed dates & catalysts set to move crypto and markets this week. So you’re never blindsided.
Free · 3-min read · one-click unsubscribe
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jul 17, 2026 · How we report
The ten largest companies represent approximately 40 percent of the S&P 500 market value as of September 6, 2026.
The S&P 500 has declined by an average of 0.7 percent during the month of September since 1950.
Wealth managers are concerned because the high concentration of the S&P 500 in a few technology and artificial intelligence-focused companies means a sector-specific downturn could have a disproportionate impact on retirement portfolios.
The S&P 500 hit multiple all-time highs in August 2026, driven by surging corporate profits and strong earnings reports from companies in the computing sector.