Morgan Stanley Investment Management (MSIM) has converted the Morgan Stanley Income Opportunities Fund into the Eaton Vance Income Opportunities ETF, which is now trading on NYSE Arca under the ticker XAGG. This move expands MSIM’s lineup of actively managed fixed income exchange-traded funds.
The new Eaton Vance Income Opportunities ETF aims to provide investors with diversified access to a range of global fixed income sectors, focusing particularly on areas that are often less represented in traditional core portfolios. Andrew Szczurowski, Co-Head of MSIM’s Mortgage and Securitized investment team, will lead management of the fund alongside other senior portfolio managers within MSIM.
Ally Wallace, Global Head of Capital Markets and ETF Strategy at MSIM, commented: “The launch of Eaton Vance Income Opportunities ETF marks another milestone in the expansion of our ETF platform and commitment to offering investors best-in-class, actively-managed fixed income strategies in the ETF structure. We continue to look across our platform for dynamic investment strategies that address investor needs and resonate in today’s marketplace.”
According to Szczurowski: “In today’s environment, we believe it is imperative to offer a multisector approach to help investors navigate the shifting market and take advantage of emerging opportunities. Eaton Vance Income Opportunities ETF’s strategy allows for flexibility across geographies, sectors and the yield curve.”
The primary goal for this new fund is achieving a high level of current income; maximizing total return is a secondary objective as long as it aligns with its main aim.
Following this conversion, MSIM now offers 18 ETFs on its platform—11 are active fixed income funds. The list includes various Eaton Vance-branded products such as total return bond funds, short duration options, mortgage opportunities ETFs, municipal income offerings and more. Since launching its ETF platform in early 2023, MSIM has grown assets under management for these products to over $9 billion as of October 31, 2025.
Morgan Stanley Investment Management operates globally with about 1,400 investment professionals and manages or supervises $1.8 trillion in assets as of September 30, 2025. Its client base spans governments, institutions, corporations and individuals worldwide.
Morgan Stanley itself provides financial services including investment banking and wealth management through offices in 42 countries.
Investors considering any Morgan Stanley Investment Management-advised ETFs are encouraged to review each fund's prospectus carefully before investing due to risks associated with diversification not eliminating losses; potential market declines; credit risk; interest rate changes; liquidity concerns; risks related to high-yield securities (“junk bonds”); foreign investments including those in emerging markets; sovereign debt default risk; illiquid securities challenges; unpredictable cash flows from collateralized mortgage obligations; risks tied to loans including defaults or lack of information transparency; certain U.S. government securities lacking full federal backing; derivative instrument volatility; currency derivative exposures that may result in unexpected losses if currencies do not perform as anticipated by Morgan Stanley Investment Management Inc.; discretionary decisions by active managers affecting performance outcomes; limited authorized participants potentially impacting share pricing or liquidity issues on exchanges.
Eaton Vance, Parametric and Calvert brands operate under Morgan Stanley Investment Management. Foreside Fund Services LLC distributes their ETFs.