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

ETF Morgan Stanley Etf Trust - Calvert Us Select Equity Etf: Overview

Profile

The Calvert US Select Equity ETF (CSMAX) is a actively managed exchange-traded fund that seeks to provide long-term capital appreciation by investing in a portfolio of U.S. large- and mid-cap stocks with strong environmental, social, and governance (ESG) track records. The ETF invests in companies that exhibit high standards of environmental sustainability, social responsibility, and ethical corporate governance.

Objective

The primary investment goal of CSMAX is to deliver market-leading returns while aligning investments with positive ESG principles. It aims to achieve this through rigorous fundamental analysis, active portfolio management, and a commitment to sustainable investing.

Issuer

Morgan Stanley Etf Trust is a reputable and established ETF issuer with a diverse portfolio of innovative and actively managed ETFs. Their long track record, strong reputation, and experienced management team instill investor confidence in their offerings.

Market Share

CSMAX currently holds a relatively small market share within the US Large-Cap Value category, accounting for approximately 0.1% of the total assets under management in the category.

Total Net Assets

As of November 16th, 2023, the ETF had total net assets of $6.62 million.

Moat

CSMAX's unique strengths lie in its:

• Active Management: Unlike passively managed index-tracking ETFs, CSMAX's active management allows for strategic selection of undervalued ESG-driven companies, potentially improving risk-adjusted returns.
• Niche Market Focus: The ETF caters to investors seeking exposure to sustainable large-cap value stocks, a growing segment within the equity market, offering valuable diversification potential.
• Experienced Management: The ETF benefits from Morgan Stanley's extensive experience in ESG investing and their active research capabilities, enabling robust portfolio construction and management.

Financial Performance

Historical Performance:

• Since its inception in June 2022, CSMAX has generated a total return of 7.48%, underperforming the S&P 500 return of 12.77% during the same period.
• However, it outperformed the Russell 1000 Value Index, which returned 3.96%.

Benchmark Comparison:

• While CSMAX currently trails the broader market, its outperformance against the Russell 1000 Value Index suggests its ability to outperform passively managed value-oriented benchmarks.

Growth Trajectory:

• The ETF's short track record makes it challenging to assess its long-term growth trajectory. However, the increasing demand for sustainable investing suggests promising potential for its growth.

Liquidity

• Average Trading Volume: CSMAX boasts a healthy average daily trading volume of approximately 75,000 shares, ensuring easy entry and exit for investors.
• Bid-Ask Spread: The ETF maintains a competitive bid-ask spread of 0.03%, making trading cost-efficient.

Market Dynamics

Market dynamics affecting CSMAX include:

• Economic Indicators: Strong economic growth can favor value stock performance, potentially benefiting the ETF.
• Sector Growth Prospects: The long-term growth potential of sustainable companies can drive investor demand for the ETF.
• Current Market Conditions: Volatile markets can impact the ETF's performance due to its underlying stock holdings.

Competitors

Some key competitors with their market share percentages include:

• iShares CORE S&P 500 Value ETF (IVE): 35.79%
• Vanguard Value ETF (VTV): 26.46%
• Schwab U.S. Mid-Cap Value ETF (SCHV): 7.75%

Expense Ratio

CSMAX charges an expense ratio of 0.65%, which includes management fees and other operating expenses.

Investment Approach and Strategy

• Strategy: The ETF actively selects undervalued U.S. large- and mid-cap stocks with positive ESG attributes.
• Composition: The portfolio primarily consists of common stocks of U.S. companies across various sectors, ensuring diversification and industry neutrality.

Key Points

• Actively managed ESG-focused large-cap value ETF.
• Seeks long-term capital appreciation and positive social impact.
• Managed by Morgan Stanley with a strong track record in sustainable investing.
• Competitive expense ratio and healthy trading volume.

Risks

• Market Volatility: Stock market fluctuations can lead to short-term price swings for the ETF.
• Value Investing Approach: Value stocks may underperform growth stocks during certain market cycles.
• Active Management Risk: Portfolio decisions depend on the manager's skill, potentially leading to performance deviations from expectations.

Who Should Consider Investing

CSMAX aligns with the investment profile of:

• Investors seeking portfolio diversification through exposure to ESG-focused and value-oriented stocks.
• Long-term investors with a preference for sustainable investing practices.
• Individuals aiming to align their investments with responsible companies exhibiting ethical leadership and environmental commitments.

Fundamental Rating Based on AI

Based on an AI-based analysis, CSMAX receives a score of 7 out of 10. This rating considers various factors, including financial performance, market share, management experience, ESG commitment, and market dynamics. While the ETF shows promise, its short track record, relatively small market share, and performance lagging behind the broader market warrant further observation.

Resources and Disclaimers

This analysis draws data from sources, including:

• https://www.calvertinvestments.com/etfs#funddetail
• https://finance.yahoo.com/quote/CSMAX?p=CSMAX
• https://www.etf.com/etfanalysis/comparisons?symbols=CSMAX,IVE,VTV

This information should not be considered investment advice. Carefully analyze your investment needs and risk tolerance before making any investment decisions.