Morgan Stanley Etf Trust - Calvert Us Select Equity Etf (CVSE)

ETF Morgan Stanley Etf Trust - Calvert US Select Equity ETF (CALF) Overview:

Profile:

• Focus: Large-cap US stocks with high ESG ratings.
• Asset Allocation: Primarily equities, with a small allocation to cash and equivalents.
• Investment Strategy: Actively managed, seeking to outperform the Russell 1000 Index by investing in companies with strong ESG practices and attractive financial profiles.

Objective:

• Achieve long-term capital appreciation through a combination of capital growth and dividend income.

Issuer:

• Morgan Stanley Investment Management: A leading global investment manager with a strong reputation and long track record.

Management:

• Experienced portfolio management team with expertise in ESG investing and fundamental analysis.

Market Share:

• Approximately 0.03% of the US Large-Cap Equity ETF market.

Total Net Assets:

• $229.2 million (as of November 17, 2023).

Moat:

• ESG Focus: CALF's focus on ESG investing differentiates it from many other large-cap equity ETFs.
• Active Management: The active management approach allows for flexibility and potential outperformance compared to passively managed index funds.
• Experienced Management: The experienced portfolio management team has a strong track record in ESG investing.

Financial Performance:

• Inception Date: December 19, 2017.
• Year-to-Date Return (as of November 17, 2023): -14.27%.
• Trailing 1-Year Return: -14.27%.
• Trailing 3-Year Return: 10.29%.
• Trailing 5-Year Return: 14.03%.

Benchmark Comparison:

• CALF has underperformed the Russell 1000 Index in recent years.
• However, it has outperformed the S&P 500 Index over the past 3 and 5 years.

Growth Trajectory:

• The future growth of CALF will depend on the performance of the US stock market and the continued demand for ESG investing.

Liquidity:

• Average Trading Volume: 11,000 shares per day.
• Bid-Ask Spread: 0.04%.

Market Dynamics:

• Economic indicators, sector growth prospects, and current market conditions can all impact the performance of CALF.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG US Stock ETF (ESGV)
• Xtrackers S&P 500 ESG ETF (ESG)

Expense Ratio:

• 0.45%

Investment Approach and Strategy:

• Strategy: Actively managed, seeking to outperform the Russell 1000 Index.
• Composition: Primarily large-cap US stocks with high ESG ratings.

Key Points:

• Focus on ESG investing.
• Actively managed.
• Experienced management team.
• Competitive expense ratio.

Risks:

• Market Volatility: CALF is exposed to the volatility of the US stock market.
• ESG Risk: The performance of companies with high ESG ratings may not always outperform the market.
• Active Management Risk: The active management approach may not outperform the benchmark index.

Who Should Consider Investing:

• Investors who are interested in ESG investing.
• Investors who are seeking long-term capital appreciation.
• Investors who are comfortable with the risks associated with actively managed ETFs.

Fundamental Rating Based on AI:

• Rating: 7.5/10
• Rationale: CALF has a strong ESG focus, experienced management team, and competitive expense ratio. However, it has underperformed the Russell 1000 Index in recent years.

Resources:

• Morgan Stanley Website: https://www.morganstanley.com/ideas/etfs/us-select-equity-etf
• ETF.com: https://www.etf.com/CALF

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.