Morgan Stanley ETF Trust - Calvert US Large-Cap Diversity Equity and Inclusion Index ETF (CDEI)

Overview

The Calvert US Large-Cap Diversity, Equity and Inclusion Index ETF (CDIV) seeks to track the performance of the Calvert US Large-Cap Diversity, Equity and Inclusion Index, which measures the performance of U.S. large-capitalization companies that demonstrate leadership in the areas of diversity, equity, and inclusion.

Reputation and Reliability

Morgan Stanley is a well-established financial institution with a global presence and a long history in asset management. Their ETFs are generally considered reliable.

Management Expertise

Morgan Stanley Investment Management has a team of experienced portfolio managers and analysts overseeing their ETF offerings.

Goal

To track the investment results of the Calvert US Large-Cap Diversity, Equity and Inclusion Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the performance of a specific index focused on large-cap companies with strong diversity, equity, and inclusion practices.

Composition The ETF holds primarily stocks of large-cap U.S. companies selected based on their diversity, equity, and inclusion scores.

Market Share: CDIV's market share within the DEI-focused ETF space is moderate, as this is still a relatively niche market.

Total Net Assets (AUM): 78000000

Key Competitors

• SPDR S&P 500 ETF Trust (SPY)
• iShares ESG Aware MSCI USA ETF (ESGU)
• Xtrackers S&P 500 ESG ETF (SNPE)

Competitive Landscape

The ETF industry is highly competitive, with many established players like BlackRock (iShares) and State Street (SPDR) holding significant market share. CDIV competes in a niche segment, focusing on DEI, offering a differentiated approach compared to broad market ETFs. The advantage of CDIV is its targeted DEI focus, attracting socially conscious investors. The disadvantage is the smaller AUM and liquidity compared to larger, more diversified ETFs.

Historical Performance: Historical performance data can be found on the Morgan Stanley Investment Management website and other financial data providers, which will show returns over various periods (e.g., 1-year, 3-year, 5-year, since inception).

Benchmark Comparison: CDIV's performance should be compared against the Calvert US Large-Cap Diversity, Equity and Inclusion Index to assess tracking accuracy.

Expense Ratio: 0.18

Average Trading Volume

CDIV's average trading volume is moderate, which may affect ease of trade execution for large orders.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions but is generally tight due to the large-cap nature of the underlying holdings.

Market Environment Factors

Economic indicators, investor sentiment towards ESG and DEI factors, and overall market conditions all influence CDIV. Increased demand for socially responsible investments can positively impact the ETF.

Growth Trajectory

CDIV's growth trajectory is dependent on the increasing adoption of ESG investing and investor interest in diversity and inclusion metrics. Changes to the underlying index methodology or constituent companies could impact holdings.

Competitive Edge

CDIV's competitive advantage lies in its focus on DEI, a growing area of interest for investors. It uses a proprietary index designed to identify companies that demonstrate leadership in diversity, equity, and inclusion. This specific focus provides a differentiated offering compared to broader ESG ETFs. The fund's connection to Morgan Stanley's established brand can also be seen as an advantage.

Volatility

CDIV's volatility is generally in line with the broader large-cap market, reflecting the composition of its holdings.

Market Risk

CDIV is subject to market risk, including economic downturns and changes in investor sentiment. Specific risks associated with its underlying assets include potential negative impacts from controversies surrounding DEI issues at constituent companies.

Ideal Investor Profile

The ideal investor for CDIV is someone who prioritizes ESG factors, specifically diversity, equity, and inclusion, and is looking for exposure to large-cap U.S. companies with strong DEI practices.

Market Risk

CDIV is best suited for long-term investors who align with its ESG and DEI investment philosophy.

The Calvert US Large-Cap Diversity, Equity and Inclusion Index ETF (CDIV) provides exposure to U.S. large-cap companies recognized for their strong diversity, equity, and inclusion practices, tracking the Calvert US Large-Cap Diversity, Equity and Inclusion Index. It's suitable for investors seeking socially responsible investments that align with DEI values. While its AUM and trading volume are moderate compared to broader market ETFs, its differentiated focus offers a unique opportunity for ESG-conscious investors. CDIV's performance is tied to the success of its underlying holdings and the overall market sentiment towards ESG and DEI factors.

Data Sources:

• Morgan Stanley Investment Management website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and risk tolerance. Past performance is not indicative of future results.