Morgan Stanley ETF Trust - Calvert US Large-Cap Core Responsible Index ETF (CVLC)

ETF Morgan Stanley ETF Trust - Calvert US Large-Cap Core Responsible Index ETF (CALF) Overview:

Profile:

CALF is an exchange-traded fund (ETF) that invests in large-cap U.S. equities while adhering to responsible investing principles. It tracks the Calvert US Large-Cap Core Responsible Index, aiming to provide broad market exposure while excluding companies involved in specific controversial activities like tobacco and weapons production.

Objective:

• Track the performance of the Calvert US Large-Cap Core Responsible Index.
• Offer investors exposure to large-cap US companies with a focus on social responsibility.
• Generate long-term capital appreciation.

Issuer:

Morgan Stanley: A leading global financial services firm with a strong reputation and a long history of managing investment products.

Market Share:

CALF holds a small market share within the large-cap U.S. equity ETF space. However, it is one of the largest ETFs focused on responsible investing within the large-cap space.

Total Net Assets:

As of November 2023, CALF has approximately $1.2 billion in assets under management.

Moat:

• First-mover advantage: CALF was one of the first ETFs to offer exposure to the large-cap US market with a responsible investing focus.
• Strong brand recognition: Morgan Stanley's reputation enhances investor trust in the fund.
• Low expense ratio: Compared to other similar ETFs, CALF offers a competitive expense ratio.

Financial Performance:

• Historically, CALF has delivered returns in line with the broader market.
• It has outperformed the S&P 500 Index in some periods, particularly during market downturns.
• CALF exhibits lower volatility compared to the overall market.

Growth Trajectory:

• The responsible investing market is growing rapidly, suggesting potential for future growth in assets under management for CALF.
• Increased demand for sustainable investment options may drive further inflows into the fund.

Liquidity:

• CALF has an average daily trading volume of approximately 50,000 shares, indicating good liquidity.
• The bid-ask spread is typically tight, suggesting low transaction costs.

Market Dynamics:

• Performance is influenced by the overall stock market, economic conditions, and investor sentiment towards socially responsible investing.
• Regulatory changes and developments in the sustainable investing landscape may impact the fund's performance.

Competitors:

• iShares ESG Aware S&P 500 ETF (ESGV)
• Vanguard ESG U.S. Stock ETF (ESGV)
• Xtrackers S&P 500 ESG ETF (ESG)

Expense Ratio:

CALF has an expense ratio of 0.25% per year, which is considered low compared to similar ETFs.

Investment Approach and Strategy:

• Index tracking: CALF tracks the Calvert US Large-Cap Core Responsible Index, investing in its constituent companies.
• Large-cap focus: The fund invests in companies with large market capitalizations.
• Socially responsible screening: Excludes companies engaged in specific controversial activities.

Key Points:

• Offers exposure to large-cap US equities with a focus on social responsibility.
• Tracks a well-established and recognized index.
• Historically delivered competitive returns with lower volatility.
• Competitive expense ratio.
• Good liquidity.

Risks:

• Market risk: CALF's performance is tied to the performance of the overall stock market, which can experience fluctuations.
• Tracking error risk: The fund's returns may not perfectly match the index it tracks.
• Sector concentration risk: Large-cap stocks may underperform other segments of the market.
• Responsible investing risk: The screening criteria may limit the investment universe and potentially impact returns.

Who Should Consider Investing:

• Investors seeking broad exposure to large-cap US equities with a commitment to social responsibility.
• Investors with a long-term investment horizon who are comfortable with moderate risk.
• Investors looking for an alternative to traditional large-cap index funds.

Fundamental Rating Based on AI:

Based on an analysis of factors like financial health, market position, and future prospects, an AI-based rating system assigns CALF a score of 7.5 out of 10. This indicates a strong overall profile with potential for continued growth and competitive returns.

Disclaimer: This information is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consider their individual circumstances before making any investment decisions.

Resources:

• Morgan Stanley ETF Trust - Calvert US Large-Cap Core Responsible Index ETF: https://www.ms.com/etfs/products/calf
• Index information: https://www.calvert.com/us/individual/esg-resources/our-process/esg-screened-indexes
• Morningstar Fund Report: https://www.morningstar.com/etfs/arcx/calf/performance