Morgan Stanley Investment Management (“MSIM”) today announced the listing of five new ETFs on NYSE Arca. These latest additions to MSIM’s ETF platform are all actively-managed and span asset classes with one Parametric-branded alternative income strategy, one Parametric-branded hedged equity strategy, and three Eaton Vance-branded fixed income strategies.
“Following the successful launch of MSIM’s ETF platform earlier this year, the new additions to the platform further capitalize on the deep experience of our investment teams and client-focused approach by delivering actively-managed strategies through the in-demand ETF structure,” said Anthony Rochte, Global Head of ETFs at MSIM. “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.”
MSIM’s ETF platform draws on the Firm’s history and leadership in fixed income markets, and the Parametric team’s long-established capabilities in options-based solutions. The five new ETFs advised by MSIM include:
- Parametric Equity Premium Income ETF (PAPI)
- Parametric Hedged Equity ETF (PHEQ)
- Eaton Vance High Yield ETF (EVHY)
- Eaton Vance Intermediate Municipal Income ETF (EVIM)
- Eaton Vance Ultra-Short Income ETF (EVSB)
All five of the ETF strategies will be actively managed and are designed to meet specific investor goals.
- The alternative income strategy (PAPI) from Parametric will seek to deliver consistent and sustainable monthly income while participating in most market appreciation. By combining a diversified, dividend-focused equity portfolio with selling call options on the SPDR S&P 500 ETF Trust, the strategy is expected to generate additional yield in a tax efficient manner.
- Combining a U.S. large-cap equity portfolio with option overlay hedges, the Parametric hedged equity strategy (PHEQ) seeks to provide investors with capital appreciation while incorporating downside protection. The option overlay component, which seeks to reduce portfolio volatility, is a capability that Parametric has employed primarily for institutional clients in the past and will now be accessible to a broader range of investors through this ETF vehicle.
- The Eaton Vance-branded fixed income strategies will seek to provide alpha generation across the credit spectrum by respectively focusing on high yield securities (EVHY), municipal obligations, the interest on which is exempt from regular federal income tax (EVIM), and investment grade, U.S. dollar-denominated debt securities (EVSB).
MSIM launched its ETF platform in February 2023 with six Calvert-branded ETFs, which total approximately $400 million in assets under management as of September 30, 2023.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,100 investment professionals around the world and $1.4 trillion in assets under management or supervision as of September 30, 2023. Morgan Stanley Investment Management strives to provide strong long-term investment performance, outstanding service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.
Before investing carefully consider the Fund's objective, risks, charges, and expenses available in the prospectus, please download one at https://www.eatonvance.com. Read carefully.
There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, you can lose money investing in this portfolio . Please be aware that this portfolio may be subject to certain additional risks. Equity Securities. In general, equity securities' values also fluctuate in response to activities specific to a company. Options Risk. Options may be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns. Writing call options involves the risk that the Portfolio may be required to sell the underlying security or instrument (or settle in cash an amount of equal value) at a disadvantageous price or below the market price of such underlying security or instrument, at the time the option is exercised. Underlying Index. The Fund invests in options that derive their value from the Underlying Index, and therefore the Fund’s investment performance largely depends on the investment performance of the Underlying Index in addition to the performance of its equity portfolio, which will fluctuate. Fixed- income securities are subject to the ability of an issuer to make timely principal and interest payments (credit risk), changes in interest rates (interest-rate risk), the creditworthiness of the issuer and general market liquidity (market risk). In a rising interest-rate environment, bond prices may fall and may result in periods of volatility and increased portfolio redemptions. In a declining interest-rate environment, the portfolio may generate less income. Longer-term securities may be more sensitive to interest rate changes.
Eaton Vance, Parametric and Calvert are part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley. Morgan Stanley Investment Management Inc. is the adviser to the ETFs.
ETFs are distributed by Foreside Fund Services LLC.
Media: Lauren Bellmare