March 2, 2024

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Morgan Stanley Launches Five New Active ETFs, Offering Investors More Choices and Opportunities

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Morgan Stanley has launched five new active ETFs, offering investors more choices and opportunities. These ETFs span a variety of asset classes and investment strategies, making them a good fit for investors of all levels of experience.
Morgan Stanley

Morgan Stanley Launches Five New Active ETFs, Offering Investors More Choices and Opportunities

Morgan Stanley Investment Management (MSIM) has rolled out five new active ETFs on NYSE Arca, expanding its lineup to include a variety of asset classes and investment strategies. The new ETFs are:

  • Parametric Equity Premium Income ETF (PAPI): This ETF seeks to generate income and capital appreciation by investing in a diversified portfolio of dividend-paying stocks and selling call options on the S&P 500 index.
  • Parametric Hedged Equity ETF (PHEQ): This ETF seeks to provide long-term capital appreciation while reducing downside risk by using a variety of hedging strategies.
  • Eaton Vance High Yield ETF (EVHY): This ETF seeks to provide high income by investing in high-yield corporate bonds.
  • Eaton Vance Intermediate Municipal Income ETF (EVIM): This ETF seeks to provide current income exempt from federal income tax by investing in municipal bonds of intermediate maturity.
  • Eaton Vance Ultra-Short Income ETF (EVSB): This ETF seeks to provide current income while preserving capital by investing in ultra-short-term bonds and other money market instruments.

The launch of these new ETFs marks the latest step in MSIM’s ongoing effort to expand its ETF platform. The firm first entered the ETF market in February 2023 with the launch of six Calvert-branded ETFs. MSIM acquired Eaton Vance in 2021, and the new ETFs reflect the firm’s commitment to offering a comprehensive range of investment solutions to its clients.

The new ETFs are all actively managed, meaning that they are overseen by a team of investment professionals who make investment decisions on behalf of the fund’s shareholders. This approach can offer a number of advantages over passive ETFs, such as the ability to generate additional income, reduce risk, and invest in unique asset classes or investment strategies.

The new ETFs are also relatively low-cost, with expense ratios ranging from 0.29% to 0.48%. This makes them an affordable option for investors of all sizes.

Overall, the launch of these five new active ETFs is a positive development for investors. It provides them with more options for investing in a variety of asset classes and investment strategies. The ETFs are also actively managed and relatively low-cost, making them an attractive option for many investors.

Potential Benefits of Investing in the New ETFs

The new ETFs from MSIM offer a number of potential benefits to investors, including:

  • Income generation: The Parametric Equity Premium Income ETF and the Eaton Vance High Yield ETF are both designed to generate income for investors. This can be an important goal for investors who are retired or nearing retirement.
  • Risk reduction: The Parametric Hedged Equity ETF is designed to reduce downside risk while still providing the potential for long-term capital appreciation. This can be an attractive option for investors who are looking to protect their capital while still growing their wealth.
  • Access to unique investment opportunities: The Eaton Vance Intermediate Municipal Income ETF and the Eaton Vance Ultra-Short Income ETF offer exposure to asset classes that are not typically available in passive ETFs. This can be beneficial for investors who are looking to diversify their portfolios.

How to Invest in the New ETFs

Investors can invest in the new ETFs through any brokerage firm that offers access to ETFs. The ETFs are traded on NYSE Arca, and their ticker symbols are as follows:

  • 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)

The new active ETFs from MSIM offer a number of potential benefits to investors, including income generation, risk reduction, and access to unique investment opportunities. Investors who are interested in investing in these ETFs should contact their brokerage firm to learn more.

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