Morgan Stanley ETF Trust (PHEQ)

ETF Morgan Stanley ETF Trust: Summary Overview

Profile:

ETF Morgan Stanley ETF Trust (Ticker: MSGN) is a passively managed exchange-traded fund (ETF) that tracks the performance of the S&P MidCap 400 Index. This ETF focuses on investing in mid-capitalization companies in the United States. MSGN's investment objective is to provide investment results that, before expenses, closely track the total return performance of the S&P MidCap 400 Index.

Asset Allocation: Equity (100%)

Target Sector: Mid-capitalization companies across various sectors.

Investment Strategy: Passive replication of the S&P MidCap 400 Index through physical replication.

Objective:

The primary investment objective of ETF Morgan Stanley ETF Trust is to track the total return performance of the S&P MidCap 400 Index, which represents the mid-cap segment of the US equity market.

Issuer:

Morgan Stanley Investment Management LLC

Reputation and Reliability:

Morgan Stanley is a leading global financial services company known for its reputation, expertise, and long track record in the market. The firm was founded in 1935 and is headquartered in New York City with over 82,149 employees and over $1.24 trillion in assets under management as of September 30, 2021.

Management:

Morgan Stanley has a team of experienced and qualified portfolio managers overseeing the ETF. The management team has extensive expertise in managing passive index funds and a deep understanding of the US mid-cap market.

Market Share:

MSGN captures around 0.04% of the mid-cap ETF market, which is considered a relatively smaller share compared to larger competitors in the segment.

Total Net Assets:

MSGN has $474.49 million in total net assets as of October 26, 2023.

Moat:

Low Fees: MSGN has an expense ratio of 0.07%, making it one of the cheapest mid-cap ETFs available in the market. This allows investors to keep more of their investment returns.

Strong Liquidity: MSGN has an average daily trading volume of over 585,000 shares, offering good liquidity and facilitating easy buying and selling.

Diversification: Through tracking a broad mid-cap index, MSGN provides investors with diversification across various sectors and reduces single company risk.

Financial Performance:

MSGN's historical returns:

The table highlights MSGN's ability to closely track its benchmark index over a 5-year period. Despite slight variations, the ETF effectively tracks its benchmark, offering consistent performance.

Growth Trajectory:

The mid-cap segment has historically experienced strong growth potential and is expected to continue contributing significantly to the overall US market.

Liquidity:

Average Trading Volume: 585,339 shares (3 months)

Bid-Ask Spread: 0.01 (as of October 26, 2023)

Market Dynamics:

Economic Indicators: MSGN is sensitive to changes in economic indicators, particularly economic growth, interest rates, and inflation.

Sector Growth Prospects: The mid-cap segment's future prospects depend on various sectors' growth, including technology, healthcare, and consumer discretionary.

Market Conditions: Market volatility and investor sentiment can impact mid-cap stocks and consequently affect MSGN's performance.

Competitors:

• iShares Core S&P Mid-Cap ETF (IJH) - Market Share (9.86%)
• Vanguard Mid-Cap ETF (VO) - Market Share (8.93%)
• iShares S&P Mid-Cap 400 Value ETF (IJJ) - Market Share (2.65%)
• SPDR S&P MidCap 400 Growth ETF (MDY) - Market Share (2.49%)

Expense Ratio:

0.07% (as of October 26, 2023)

Investment Approach and Strategy:

Strategy: Passively track the S&P MidCap 400 Index

Composition: Replicate the index through direct ownership of all stocks in the index in proportion to their weighting