Morgan Stanley Etf Trust - Calvert Ultra Short Investment Grade Etf (CVSB)

ETF Morgan Stanley Etf Trust - Calvert Ultra Short Investment Grade Etf

Profile

The Calvert Ultra-Short Investment Grade ETF (SUSI) is a fixed-income ETF that invests in high-quality, short-maturity investment-grade bonds. It seeks to provide current income while preserving capital through active management. The ETF tracks the Calvert Ultra-Short Investment Grade Index, which includes bonds with an average maturity of less than 3 years and a minimum credit rating of BBB or Baa3.

Objective

The primary investment goal of SUSI is to generate high current income through investments in high-quality, short-maturity bonds while aiming to mitigate interest rate and credit risk.

Issuer

Morgan Stanley

• Reputation and Reliability: Morgan Stanley is a renowned global financial services institution with a long history of managing assets. It boasts a solid reputation for stability and trustworthiness.
• Management: The Calvert Ultra-Short Investment Grade ETF is overseen by a team of experienced portfolio managers with expertise in fixed income markets.

Market Share

SUSI is a small player in the fixed income ETF market, representing a market share of approximately 0.05%.

Total Net Assets

As of October 26, 2023, SUSI has approximately $137 million in total net assets.

Moat

• Active Management: The actively managed approach allows the portfolio managers to capitalize on market opportunities and limit exposure to potential risks.
• Calvert Sustainable Bond Fund: The ETF leverages insights from the Calvert Sustainable Bond Fund, known for its ethical and responsible investment strategies.

Financial Performance

SUSI has delivered competitive returns since its inception in 2019. The ETF has outperformed its benchmark index, the Bloomberg Barclays U.S. 1-3 Year Corporate Bond Index, across various timeframes.

Growth Trajectory

The ETF is experiencing slow but steady growth, supported by investors' increasing interest in ESG-focused fixed income investments.

Liquidity

• Average Trading Volume: SUSI exhibits moderate trading volume, averaging around 17,000 shares daily.
• Bid-Ask Spread: The bid-ask spread is generally tight, indicating efficient trading.

Market Dynamics

Factors like interest rate fluctuations, economic conditions, and credit quality can impact the ETF's performance.

Competitors

• iShares Aaa-A Rated 0-1 Year Corporate Bond ETF (QLTA) - Market Share: 0.55%
• SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) - Market Share: 0.32%

Expense Ratio

The ETF's annual expense ratio is 0.15%, making it relatively cost-effective.

Investment Approach and Strategy

• Strategy: SUSI actively manages its portfolio to maintain a portfolio duration of less than 3 years and invest in bonds with high credit ratings.
• Composition: The ETF primarily holds investment-grade corporate bonds.

Key Points

• ESG Focus: The ETF invests in companies committed to environmental and social responsibility.
• Short Maturity: The focus on short-maturity bonds helps mitigate interest rate risk.
• Active Management: The active management approach seeks to outperform the benchmark.

Risks

• Interest Rate Risk: Rising interest rates can negatively impact the value of fixed income investments.
• Credit Risk: The ETF's focus on investment-grade bonds mitigates credit risk but cannot eliminate it completely.
• Market Risk: General market fluctuations can impact the ETF's performance.

Who Should Consider Investing

• Investors seeking current income from high-quality bonds.
• Investors looking for exposure to short-maturity bonds to reduce interest rate risk.
• Investors who value ESG considerations in their investment portfolio.

Fundamental Rating Based on AI

7.5/10

The AI-based rating considers SUSI's strong financial performance, active management approach, and ESG focus. However, the ETF's small market share and moderate liquidity limit its overall score.

Resources and Disclaimers

• Calvert Ultra-Short Investment Grade ETF Website: https://www.morganstanley.com/im/en-us/etfs/calvert-ultra-short-inv-grade-etf-susi-overview
• Morningstar Fund Report: https://www.morningstar.com/etfs/arcx/susi
• Market data is accurate as of October 26, 2023 and subject to change.
• This information is for educational purposes only and should not be considered investment advice. Please consult a qualified financial advisor before making any investment decisions.