Morgan Stanley to convert $10 billion in Eaton Vance muni funds to ETFs
As seen on the 24/7 Wall St. homepage on September 16, 2026.
Holders of Eaton Vance state muni mutual funds and closed-end funds would get intraday liquidity and likely cheaper fees if the $10 billion conversion clears; watch the filing for the fee tier Balchunas flags as the swing factor.
Morgan Stanley is going to convert $10b worth of Muni mutual funds into ETFs. Looks like that’s what this filing was. https://t.co/9Oa0pgj6UY https://t.co/be5TD3JEk2 [Quoted @EricBalchunas]: Morgan Stanley with the rare ETF filing, this one for a slew of Eaton Vance state muni ETFs which are curr in CEF or MF form only. These should do well imo esp if fee is at Inst class or lower. https://t.co/21rGVxkduD
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Morgan Stanley filed to convert $10 billion of Eaton Vance state municipal bond funds, now available only as closed-end funds or mutual funds, into ETFs.
Holders gain intraday exchange trading and lose the persistent discounts to net asset value that closed-end funds carry. Conversion removes those structural disadvantages in one step.
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Bloomberg Intelligence ETF analyst Eric Balchunas flagged the original filing as rare for Morgan Stanley and noted the new ETFs should perform well, particularly if the fee lands at the institutional share class level or below. The fee tier determines whether everyday investors get the cost structure large institutions currently enjoy.
Municipal bond funds carry tax-exempt income that already attracts yield-focused investors, and an ETF wrapper adds the tax efficiency of the ETF structure on top. That combination broadens the appeal of these funds beyond their existing shareholder base.
Mentioned: MS