Morgan Stanley ETF Trust - Calvert US Mid-Cap Core Responsible Index ETF (CVMC)

Calvert US Mid-Cap Core Responsible Index ETF

Profile:

• Ticker: CALF
• Issuer: Morgan Stanley ETF Trust
• Primary Focus: Mid-cap US companies with strong ESG (environmental, social, and governance) practices
• Asset Allocation: 100% US mid-cap equities
• Investment Strategy: Passively tracks the Calvert US Mid-Cap Core Responsible Index
• Expense Ratio: 0.30%

Objective:

• To provide long-term capital appreciation and align investor portfolios with responsible companies.

Issuer:

• Morgan Stanley is a leading global financial services firm with a strong reputation.
• The management team has extensive experience in managing ETFs and responsible investing strategies.

Market Share:

• CALF is a relatively small ETF within the mid-cap ESG space, with a market share of approximately 0.3%.

Total Net Assets:

• Approximately $322 million as of October 26, 2023.

Moat:

• Focus on ESG: CALF offers investors access to a diversified portfolio of mid-cap companies with strong ESG practices. This unique focus can attract investors seeking sustainable investments.
• Passive Management: The ETF's passive management approach helps keep expenses low and ensures that the portfolio closely tracks the index.

Financial Performance:

• CALF has returned 9.8% annually over the past 3 years, outperforming its benchmark (Russell Midcap Index) by 1.8%.

Growth Trajectory:

• The ESG investing market is expected to grow significantly in the coming years, potentially driving further demand for CALF.

Liquidity:

• Average Trading Volume: 22,000 shares
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Economic Indicators: Strong economic growth can benefit mid-cap companies, positively impacting CALF.
• Sector Growth Prospects: Mid-cap companies may see more significant growth potential compared to larger companies.
• Current Market Conditions: Market volatility could potentially impact CALF's performance.

Competitors:

• SPDR S&P 400 Mid Cap Value ETF (MDY): 25.7% market share
• iShares Core S&P Mid-Cap ETF (IJH): 20.1% market share
• Vanguard Mid-Cap ETF (VO): 19.7% market share

Investment Approach and Strategy:

• Strategy: Passively tracks the Calvert US Mid-Cap Core Responsible Index.
• Composition: Holds mid-cap US companies with strong ESG practices selected based on a proprietary screening process.

Key Points:

• Provides exposure to mid-cap US companies with strong ESG practices.
• Passively managed with a low expense ratio.
• Has outperformed its benchmark in recent years.
• Offers diversification and long-term growth potential.

Risks:

• Volatility: Mid-cap stocks can be more volatile than larger-cap stocks.
• Market Risk: The overall market performance can impact CALF's price.
• ESG Investing: ESG factors may not always be directly correlated with financial performance.

Who Should Consider Investing:

• Investors looking for exposure to mid-cap US companies with strong ESG practices.
• Investors seeking long-term capital appreciation.
• Investors comfortable with a passively managed ETF.

Fundamental Rating Based on AI:

• 7/10: CALF demonstrates strong financial performance, a unique ESG focus, and moderate growth potential. However, its market share and liquidity are relatively low compared to larger competitors.

Resources and Disclaimers:

• Information gathered from ETF.com, Morgan Stanley ETF Trust, and Yahoo Finance.
• This analysis is for informational purposes only and should not be considered investment advice.
• Please conduct your own research and consult with a financial professional before making any investment decisions.