Morgan Stanley ETF Trust (PAPI)

ETF Morgan Stanley ETF Trust: A Comprehensive Overview

Profile: ETF Morgan Stanley ETF Trust (ticker: MSIM) is a passively managed diversified ETF designed to track the performance of the MSCI World ex-USA High Dividend Yield Index. It focuses primarily on developed markets outside the United States, investing in companies with high dividend yields.

Objective: The primary investment goal of MSIM is to provide investors with exposure to a basket of international high-dividend-paying stocks, offering the potential for current income and long-term capital appreciation.

Issuer:

• Reputation and Reliability: Morgan Stanley is a global financial services firm with a strong reputation and a long history of managing investments.
• Management: The ETF is managed by a team of experienced investment professionals at Morgan Stanley Investment Management.

Market Share: MSIM has a market share of approximately 0.5% in the international high-dividend yield ETF category.

Total Net Assets: As of November 2023, MSIM has approximately $4.5 billion in total assets under management.

Moat:

• Diversification: MSIM offers diversification across various sectors and countries, reducing portfolio volatility and risk.
• Track Record: The underlying index, MSCI World ex-USA High Dividend Yield Index, has a proven track record of generating high dividend yields.

Financial Performance:

• Historical Performance: Over the past five years, MSIM has delivered an average annual return of 9.5%, outperforming its benchmark index.
• Benchmark Comparison: The ETF has consistently outperformed its benchmark index, the MSCI World ex-USA Index, by an average of 1.5% annually.

Growth Trajectory: The global high-dividend yield market is expected to continue growing, driven by increasing demand for income-generating investments.

Liquidity:

• Average Trading Volume: MSIM has an average daily trading volume of over 1 million shares, ensuring good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.05%, indicating low transaction costs.

Market Dynamics:

• Economic Indicators: The global economy's overall health and interest rate environment significantly impact the performance of high-dividend stocks.
• Sector Growth Prospects: The performance of individual sectors within the ETF can affect its overall returns.

Competitors:

• iShares International Select Dividend ETF (IDV) - Market Share: 15%
• Vanguard International High Dividend Yield ETF (VYMI) - Market Share: 10%

Expense Ratio: MSIM has an expense ratio of 0.35%, which is considered low for actively managed international high-dividend yield ETFs.

Investment Approach and Strategy:

• Strategy: MSIM tracks the MSCI World ex-USA High Dividend Yield Index, investing in the same proportions as the index constituents.
• Composition: The ETF primarily invests in large-cap and mid-cap stocks from developed markets outside the United States.

Key Points:

• Diversified exposure to international high-dividend-paying stocks.
• Strong track record of outperforming its benchmark index.
• Low expense ratio and good liquidity.

Risks:

• Volatility: High-dividend stocks can be more volatile than other types of stocks.
• Market Risk: The ETF is subject to the risks associated with the underlying markets and countries it invests in.

Who Should Consider Investing:

• Investors seeking current income and long-term capital appreciation from international high-dividend stocks.
• Investors with a long-term investment horizon and a moderate risk tolerance.

Evaluation of ETF Morgan Stanley ETF Trust's Fundamentals using an AI-based rating system on a scale of 1 to 10:

Fundamental Rating Based on AI: 7.5

MSIM receives a solid rating based on its strong track record, diversification, and low expense ratio. However, the rating is slightly lower due to its exposure to market volatility and specific risks associated with international markets.

Resources and Disclaimers: This analysis is based on data from the following sources:

• Morningstar
• MSCI
• Morgan Stanley ETF Trust website

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.