The Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ) is a closed-end investment vehicle designed to provide investors with a combination of current income and the potential for capital appreciation through a diversified portfolio of equity securities. The fund primarily invests in dividend-paying common stocks of domestic and multinational companies, spanning sectors such as financials, consumer staples, healthcare and technology. By targeting established companies with histories of consistent dividends, ETJ seeks to deliver attractive yield while maintaining exposure to broad equity market growth trends.
To manage downside risk and enhance income, ETJ employs a risk-management overlay that includes the writing of call options and the purchase of put options on a portion of the portfolio. This options strategy is intended to generate additional premium income and provide a degree of portfolio protection during periods of market volatility. The fund’s flexible approach allows portfolio managers to adjust equity weights and option positions in response to changing economic and market conditions.
Launched in December 2013, ETJ is managed by Eaton Vance Management, a well-established investment firm with roots dating back to 1924. In March 2021, Eaton Vance became a subsidiary of Morgan Stanley, further strengthening its global investment platform and resources. The fund’s portfolio team brings decades of combined experience in equity research, derivatives trading and risk oversight, supported by Eaton Vance’s proprietary research and risk-management infrastructure.
ETJ’s investment mandate encompasses companies across North America, Europe and select emerging markets, providing investors with a truly diversified equity income solution. The fund distributes income on a monthly basis, making it suitable for income-focused portfolios. Through its blend of dividend-oriented equities and systematic option strategies, the Eaton Vance Risk-Managed Diversified Equity Income Fund aims to offer a balanced approach to income generation and risk mitigation.
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