Morgan Stanley Investment Management (MSIM) has broadened its US-listed ETF line-up with the introduction of five new actively managed ETFs on NYSE Arca.
Morgan Stanley re-entered the ETF industry in February 2023.
The new listings include one Parametric-branded alternative income strategy, one Parametric-branded hedged equity strategy, and three Eaton Vance-branded fixed income strategies.
Anthony Rochte, Global Head of ETFs at MSIM, commented: “MSIM’s strategic vision for the ETF platform is to offer products across our businesses, asset classes, jurisdictions, and brands that address clients’ needs, and the Parametric and Eaton Vance strategies represent a significant step towards the realization of that goal.”
The ETFs
The Parametric Equity Premium Income ETF (PAPI US) represents an alternative income strategy that aims to deliver consistent and sustainable monthly income while maintaining the potential to benefit from most US equity market gains. The approach blends a diversified dividend-focused equity portfolio with the added income boost of selling call options on the SPDR S&P 500 ETF. PAPI comes with an expense ratio of 0.29%.
The Parametric Hedged Equity ETF (PHEQ US), meanwhile, combines a broad US large-cap equity portfolio with an options overlay that aims to mitigate portfolio volatility, a tactic that Parametric has historically deployed for institutional clients but is now making available to a wider audience. PHEQ also has an expense ratio of 0.29%.
The Eaton Vance Ultra-Short Income ETF (EVSB US) offers exposure to a diversified portfolio of investment grade, short-term fixed, variable, and floating-rate income-producing securities, managed to an overall portfolio duration of one year or less. Its expense ratio is 0.17%.
The Eaton Vance High Yield ETF (EVHY US) focuses its exposure to the higher quality portion of the high yield universe – primarily BB-rated and B-rated issuers. Its expense ratio is 0.48%.
The Eaton Vance Intermediate Municipal Income ETF (EVIM US) provides diversified core exposure to the municipal bond market, spanning municipal sectors, states, and credit tiers, while seeking to generate income exempt from regular federal income tax. Its expense ratio is 0.29%.
After a long hiatus, MSIM re-entered the ETF arena in February 2023 with an initial offering of six Calvert-branded ETFs. As of the end of September, these inaugural funds have accumulated approximately $400 million in assets under management.