Morgan Stanley Asset Management is set to introduce its first ETFs since the early ETF pioneer exited the industry more than two decades ago.
Morgan Stanley has registered its first ETFs in over 20 years.
According to a filing with the US Securities and Exchange Commission, Morgan Stanley is gearing up to launch a suite of four socially responsible equity ETFs that will be managed and track indices by its subsidiary Calvert Research and Management.
Calvert is a specialist ESG asset manager that was acquired in 2020 as part of Morgan Stanley’s purchase of Eaton Vance.
Three of the proposed funds – the Calvert US Large-Cap Core Responsible Index ETF, Calvert US Mid-Cap Core Responsible Index ETF, and Calvert International Responsible Index ETF – will select constituents based on a comprehensive assessment of multiple ESG criteria. The funds will target US large-cap, US mid-cap, and global developed ex-US stock markets.
The fourth listing will be the Calvert US Large-Cap Diversity Equity and Inclusion Index ETF which is expected to target US large-cap companies that are proven supporters of diversity and inclusion in the workplace.
The initial filing did not include information on the ETFs’ ticker codes and expense ratios.
The ETFs, which are expected to hit the market in early 2023, have been registered amid a slump in demand for ESG investing strategies with the segment recording its first net redemptions for more than three years in June.
Despite this trend, Morgan Stanley likely possesses the brand strength and asset management experience to pique the interest of investors.