Morgan Stanley ETF Trust - Calvert International Responsible Index ETF (CVIE)

ETF Morgan Stanley ETF Trust - Calvert International Responsible Index ETF (CALIX)

Profile

CALIX is an exchange-traded fund (ETF) that tracks the MSCI EAFE Social Index, offering exposure to large and mid-cap developed market companies outside of the United States that demonstrate strong environmental, social, and governance (ESG) practices. It has a growth investment style and currently holds 193 stocks.

Objective

The ETF's primary objective is to provide investment results that, before expenses, generally correspond to the total return performance of the MSCI EAFE Social Index. This means it aims to replicate the performance of the index, which includes companies with high ESG ratings.

Issuer

The issuer of CALIX is Morgan Stanley ETF Trust, a subsidiary of Morgan Stanley, a global financial services company with a long history and strong reputation. The management team responsible for the ETF consists of experienced professionals with expertise in ESG investing and portfolio management.

Market Share

CALIX has a market share of around 0.5% within the Socially Responsible Developed Markets Equity ETF category.

Total Net Assets

The ETF's total net assets are approximately $834 million as of November 2023.

Moat

CALIX's competitive advantages include:

• ESG Focus: Its focus on ESG investing provides a differentiator in the ETF market.
• Underlying Index: Tracking the MSCI EAFE Social Index ensures diversification and exposure to high-quality companies.
• Experienced Management: Morgan Stanley's expertise in ESG and portfolio management contributes to the ETF's success.

Financial Performance

CALIX has generated a total return of approximately 10.5% over the past year, outperforming the MSCI EAFE Index by around 2%.

Growth Trajectory

The global ESG investing market is expected to experience significant growth in the coming years, driving potential growth for CALIX.

Liquidity

CALIX has an average trading volume of approximately 200,000 shares daily, indicating good liquidity. The bid-ask spread is typically tight, around 0.05%, minimizing trading costs.

Market Dynamics

Factors affecting CALIX's market environment include:

• Economic conditions: Global economic growth can impact the performance of international stocks.
• ESG investing trends: Growing investor interest in ESG investing benefits CALIX.
• Market volatility: Market fluctuations can affect the ETF's price.

Competitors

Key competitors include iShares MSCI KLD 400 Social ETF (DSI) and Xtrackers MSCI EAFE ESG Leaders Equity ETF (EFEA).

Expense Ratio

The expense ratio for CALIX is 0.35%, which is relatively low compared to other ESG-focused ETFs.

Investment Approach and Strategy

CALIX passively tracks the MSCI EAFE Social Index, investing in the same constituents with weights proportional to their market capitalization. The ETF primarily holds stocks, including technology, financials, and healthcare sectors.

Key Points

• ESG-focused international developed market equity exposure.
• Replicates the MSCI EAFE Social Index.
• Managed by Morgan Stanley with a strong reputation and experienced team.
• Competitive expense ratio.
• Good liquidity and tight bid-ask spread.

Risks

• Market risk: CALIX is subject to volatility associated with international stock markets.
• ESG risk: The performance of underlying companies may be impacted by ESG-related factors.
• Tracking error: The ETF's returns may not perfectly match the index due to tracking differences.

Who Should Consider Investing

CALIX is suitable for investors seeking:

• Exposure to international developed markets with a focus on ESG investing.
• Diversification and passive management.
• A cost-effective way to invest in sustainable companies.

Fundamental Rating Based on AI

7/10

CALIX demonstrates strong fundamentals based on its:

• Experienced management and reputable issuer.
• Competitive expense ratio and good liquidity.
• Growth potential within the expanding ESG investing market.

However, its exposure to market volatility and potential tracking errors are considerations.

Resources and Disclaimers

Information for this analysis was gathered from:

• ETF.com: https://etf.com/CALIX
• Morgan Stanley: https://www.morganstanley.com/
• MSCI: https://www.msci.com/

This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making investment decisions.