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

Overview of Morgan Stanley ETF Trust - Calvert Ultra-Short Investment Grade ETF (SUSI)

Profile:

The ETF primarily focuses on providing income by investing in high-quality, low-duration, dollar-denominated fixed-income instruments. It aims for ultra-short duration, with an average maturity of less than 1 year. The fund invests in a diversified portfolio primarily composed of investment-grade government and corporate bonds.

Objective:

The primary investment goal of SUSI is to generate current income while preserving capital.

Issuer:

• Name: Morgan Stanley ETF Trust
• Reputation and Reliability: Morgan Stanley is a leading global financial services firm with a strong reputation and track record.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.

Market Share:

SUSI has a market share of around 0.5% within the ultra-short investment-grade bond ETF sector.

Total Net Assets:

As of November 9, 2023, SUSI has approximately $323 million in total net assets.

Moat:

• Niche focus: The ETF caters to specific investor needs with its ultra-short duration and investment-grade focus.
• Strong management team: The team has a proven track record in fixed income management.
• Diversified portfolio: The portfolio offers stability and mitigates credit risk.

Financial Performance:

• Historical performance: The ETF has generated positive returns since inception, with minimal volatility.
• Benchmark comparison: SUSI has outperformed its benchmark index, the ICE BofA US 1-3 Month Treasury Bill Index, over many timeframes.

Growth Trajectory:

The ETF is expected to continue its positive growth trajectory, driven by increasing demand for short-duration fixed income investments.

Liquidity:

• Average trading volume: SUSI has a moderate average trading volume, suggesting decent liquidity.
• Bid-Ask spread: The bid-ask spread is relatively low, indicating low trading costs.

Market Dynamics:

Interest rate changes, inflation, and economic growth prospects are key factors affecting the ETF's market environment.

Competitors:

• BATS: BND - iShares Core U.S. Aggregate Bond ETF (84% market share)
• XFLT: FLTR - iShares Ultra Short Treasury Bond ETF (5.5% market share)
• SCHZ: SCHZ - Schwab Short-Term U.S. Treasury ETF (4.5% market share)

Expense Ratio:

The expense ratio for SUSI is 0.09%, which is below the average for the ultra-short investment-grade bond ETF category.

Investment Approach and Strategy:

• Strategy: SUSI aims to track the performance of the ICE BofA US Ultra Short Treasury Bill Index.
• Composition: The ETF primarily holds U.S. Treasury bills and other high-quality short-term fixed income instruments.

Key Points:

• Provides current income with minimal volatility.
• Focuses on ultra-short duration and investment-grade bonds.
• Managed by a team of experienced portfolio managers.
• Low expense ratio.

Risks:

• Interest rate risk: Changes in interest rates can negatively impact the ETF's NAV.
• Credit risk: The ETF holds a portion of corporate bonds, which carry the risk of issuer default.
• Inflation risk: Inflation can erode the purchasing power of the ETF's income.

Who Should Consider Investing:

• Investors seeking income generation.
• Investors with a short-term investment horizon.
• Investors seeking lower volatility compared to other fixed income investments.

Fundamental Rating Based on AI (1-10):

9.5: SUSI scores highly due to its strong financial performance, experienced management team, low expense ratio, and niche focus. Its minimal volatility and investment-grade portfolio make it a compelling option for conservative investors.

Resources and Disclaimers:

• Data sources: Yahoo Finance, Morningstar, and ETF.com
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.