Eaton Vance Municipal Income 2028 Term Trust (ETX)

Frequently Asked Questions About Eaton Vance Municipal Income 2028 Term Trust (ETX)

Can ETX be affected by changes in tax policy?

Yes, Eaton Vance Municipal Income 2028 Term Trust can be impacted by changes in tax policy, especially since its primary appeal is the tax-exempt income provided by municipal bonds. Legislative changes that affect tax exemptions for municipal bond interest could influence investor demand and the market value of the trust’s holdings.

How can investors purchase shares of ETX?

Investors can purchase shares of Eaton Vance Municipal Income 2028 Term Trust (ETX) through various brokerage accounts. Shares are traded on the New York Stock Exchange (NYSE), allowing both individual and institutional investors to buy and sell them like stocks during market hours. It's advisable to consult with a financial advisor to determine the suitability of this investment.

How does ETX compare to similar investment vehicles?

Eaton Vance Municipal Income 2028 Term Trust can be compared to other closed-end funds, open-end mutual funds, and exchange-traded funds (ETFs) that focus on municipal bonds. Factors to consider in these comparisons include performance history, expense ratios, yield, diversification, and overall investment strategy. Each investment vehicle has its pros and cons based on investor needs.

How does ETX handle interest rate fluctuations?

Eaton Vance Municipal Income 2028 Term Trust mitigates the impact of interest rate fluctuations through duration management and diversification of the bond portfolio. The management team actively monitors interest rate trends and may adjust the portfolio's duration to minimize the adverse effects of rising interest rates on the net asset value of the trust.

How is ETX managed?

Eaton Vance Municipal Income 2028 Term Trust is managed by Eaton Vance Management, a well-established investment management firm known for its focus on fixed income and equity investments. The management team employs a disciplined investment approach, including credit analysis and market research, to identify attractive investment opportunities in the municipal bond market.

Is ETX suitable for retirement accounts?

Eaton Vance Municipal Income 2028 Term Trust may be suitable for retirement accounts such as IRAs or 401(k)s, as it provides tax-exempt income. However, potential investors should evaluate their individual retirement goals, tax situations, and consult with a financial advisor to understand how ETX aligns with their overall investment strategy.

What are the benefits of investing in ETX?

Investing in ETX offers several advantages, including the potential for tax-free income, professional management of a diversified municipal bond portfolio, and a defined termination date that provides a clear investment horizon. Additionally, municipal bonds often have lower correlation with other asset classes, which can enhance overall portfolio diversification.

What does Eaton Vance Municipal Income 2028 Term Trust (ETX) do?

Eaton Vance Municipal Income 2028 Term Trust (ETX) is a closed-end management investment company that aims to provide current income exempt from federal income tax. The trust primarily invests in a diversified portfolio of municipal securities that pay interest exempt from federal taxes. Investors typically seek out such trusts to benefit from tax-exempt income while also trying to preserve their capital.

What has been ETX's historical performance?

The historical performance of Eaton Vance Municipal Income 2028 Term Trust (ETX) can be accessed through the trust's fact sheets and financial reports, which provide comprehensive data on its net asset value (NAV), share price, and market trends. Performance varies with market conditions, interest rates, and the economic environment, with past performance not necessarily indicative of future results.

What is the dividend policy of ETX?

ETX aims to provide regular distributions to shareholders, typically on a monthly basis. These distributions are derived from the income generated by the municipal bonds within the trust's portfolio. The amount and frequency of dividends can vary based on the trust’s income capabilities and the prevailing interest rate environment.

What is the expense ratio of ETX?

The expense ratio of Eaton Vance Municipal Income 2028 Term Trust is a key factor for investors to consider, as it represents the total costs associated with managing the fund. This includes management fees, administrative expenses, and other operational costs. Specific expense ratios can be found in the trust's financial documentation and are important for assessing the cost-effectiveness of the investment.

What is the minimum investment in ETX?

The minimum investment in Eaton Vance Municipal Income 2028 Term Trust (ETX) generally corresponds to the price of one share, which is determined by the market. Investors can typically purchase one share or more through their brokerage accounts. However, it is advisable to check brokerage-specific rules and minimum investment requirements.

What is the role of Eaton Vance as a manager of ETX?

Eaton Vance, as the investment manager of Eaton Vance Municipal Income 2028 Term Trust, is responsible for the trust's investment strategy, portfolio management, and ensuring adherence to the trust's stated objectives. The firm leverages its expertise and resources in the municipal bond market to maximize returns while managing risks associated with the portfolio.

What risks are associated with investing in ETX?

As with any investment, there are risks associated with ETX, including credit risk, interest rate risk, and market risk. Interest rate risk is particularly significant for fixed-income investments; if interest rates rise, the market value of the bonds held by the trust may decrease. Moreover, changes in the financial health of the municipalities issuing the bonds could also impact credit risk.

What tools are available for ETX investors to analyze performance?

Investors in Eaton Vance Municipal Income 2028 Term Trust can utilize various tools to analyze the trust’s performance. These include financial websites, the Eaton Vance official website, analysis reports, and third-party research tools that provide detailed insights on net asset value (NAV), historical price plots, distribution history, and other relevant performance metrics.

What types of securities does ETX invest in?

ETX primarily invests in municipal bonds, which are securities issued by state and local governments to finance public projects. These bonds generally provide interest payments that are exempt from federal income tax. The trust may also focus on high-quality municipal securities, such as those rated investment grade by credit rating agencies, helping to mitigate credit risk.

When does ETX mature?

Eaton Vance Municipal Income 2028 Term Trust is structured with a termination date in 2028. This means that the trust will cease its operations and liquidate its assets at the end of the term, returning the proceeds to its shareholders. This structure is designed to provide clarity and a defined timeline for investors looking for an end date on their investment.

Who are the typical investors in ETX?

Typical investors in Eaton Vance Municipal Income 2028 Term Trust include high-net-worth individuals, income-focused investors, and those seeking tax-efficient investment options. Municipal bonds are particularly appealing to investors in higher tax brackets who wish to minimize their tax liabilities while generating income.

What is the current price of Eaton Vance Municipal Income 2028 Term Trust?

The current price of Eaton Vance Municipal Income 2028 Term Trust is 17.82

When was Eaton Vance Municipal Income 2028 Term Trust last traded?

The last trade of Eaton Vance Municipal Income 2028 Term Trust was at 2:46 pm EDT on April 8th, 2025