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 (CDI) seeks to track the performance of the Calvert US Large-Cap Diversity, Equity and Inclusion Index. It focuses on investing in U.S. large-cap companies that demonstrate leadership in diversity, equity, and inclusion (DEI) practices, while considering environmental, social, and governance (ESG) factors.

Reputation and Reliability

Morgan Stanley Investment Management is a reputable and well-established asset manager with a long history in the financial services industry. They are known for offering a range of investment products, including ETFs, mutual funds, and alternative investments.

Management Expertise

Morgan Stanley has a dedicated team of portfolio managers and analysts with expertise in ESG investing and index tracking. They leverage their research and experience to manage the fund and ensure it aligns with its investment objective.

Goal

The ETF aims to track the investment results of the Calvert US Large-Cap Diversity, Equity and Inclusion Index, providing exposure to U.S. large-cap companies with strong DEI practices.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, seeking to replicate the composition and performance of the Calvert US Large-Cap Diversity, Equity and Inclusion Index.

Composition The ETF primarily holds stocks of U.S. large-cap companies selected based on their DEI scores and ESG factors. The index methodology considers various DEI metrics, such as board diversity, workforce diversity, and inclusive policies.

Market Share: CDI's market share within the ESG-focused large-cap ETF segment is relatively small compared to established players.

Total Net Assets (AUM): 47000000

Key Competitors

• ESGV
• CRBN
• DSI
• IUSG

Competitive Landscape

The ESG ETF market is highly competitive, with several established funds offering exposure to various ESG themes. CDI differentiates itself by focusing specifically on DEI factors, but it faces competition from broader ESG funds that may have higher AUM and trading volumes. A disadvantage of CDI is its relatively small AUM, which may impact liquidity and trading costs compared to larger competitors. Advantages for CDI include the focus on DEI as a unique investment strategy

Historical Performance: Historical performance data not available due to recent inception.

Benchmark Comparison: Performance comparison to the Calvert US Large-Cap Diversity, Equity and Inclusion Index would be the standard benchmark, but is not available due to recent inception.

Expense Ratio: 0.14

Average Trading Volume

CDI's average trading volume is moderate, reflecting its smaller AUM compared to more established ETFs.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions and trading volume, potentially impacting the cost of trading for larger orders.

Market Environment Factors

CDI's performance is influenced by overall market conditions, investor sentiment towards ESG investing, and the performance of the large-cap equity market. Increasing investor focus on DEI and ESG themes could drive demand for the ETF.

Growth Trajectory

Growth will depend on increased investor awareness of DEI investment strategies and the ETF's ability to attract assets. Changes to the index methodology or holdings could impact its performance and investor appeal.

Competitive Edge

CDI's competitive edge lies in its specific focus on DEI, offering investors a targeted way to align their investments with their values. This niche focus differentiates it from broader ESG funds. The ETF's methodology provides a transparent and rules-based approach to selecting companies with strong DEI practices. Calvert Research and Management is the advisor for the fund, adding credibility with investors looking for ESG-oriented investments.

Volatility

Volatility is expected to be similar to that of the broader large-cap equity market, as the ETF invests in U.S. large-cap companies.

Market Risk

The ETF is subject to market risk, which is the risk that the overall stock market declines, leading to a decrease in the ETF's value. Specific sector risks within the large-cap market could also impact performance.

Ideal Investor Profile

The ideal investor is someone who prioritizes ESG and DEI factors in their investment decisions. Investors looking to align their investments with their values may find this ETF suitable.

Market Risk

The ETF is suitable for long-term investors who are seeking exposure to U.S. large-cap equities and who prioritize DEI considerations. It can be part of a broader diversified portfolio.

The Calvert US Large-Cap Diversity, Equity and Inclusion Index ETF (CDI) offers a unique approach to ESG investing by focusing on DEI factors within U.S. large-cap companies. Its passive management strategy and transparent methodology provide investors with a clear understanding of its investment approach. Its competitive edge lies in its specialization. However, its relatively small AUM and recent inception require investors to consider liquidity and historical performance when making investment decisions. CDI could represent a viable option for investors seeking to add a DEI-focused component to their portfolio.

Data Sources:

• Morgan Stanley Investment Management Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results.