Morgan Stanley Investment Management (MSIM) announced the launch of six Calvert exchange traded funds on NYSE Arca. The ETF product suite features Calvert Research and Management’s approach to responsible investing and offers investors access to four indexed environmental, social, and governance (ESG) strategies and two active ESG strategies across a range of asset classes.
These ETFs will capitalize on an integrated process that combines a principled approach, active engagement, and ESG research. The six new ETFs advised by MSIM are:
- The Calvert US Large-Cap Diversity, Equity and Inclusion Index ETF
- The Calvert Ultra-Short Investment Grade ETF
- The Calvert US Large-Cap Core Responsible Index ETF
- The Calvert International Responsible Index ETF
- The Calvert US-Mid Cap Core Responsible Index ETF
- The Calvert US Select Equity ETF
“Morgan Stanley and its affiliates have strong brands, deep resources, and a commitment to grow an ETF presence with advisors and end retail investors that could help it make inroads,” said Todd Rosenbluth, head of research at VettaFi. “Calvert is a well-respected partner for many advisors focused on responsible investing, but many of their clients are favoring ETF strategies.”
In a news release, Dan Simkowitz, head of Morgan Stanley Investment Management, said: “This launch is the first step in MSIM’s development of a robust ETF platform that supports products across our businesses, asset classes, jurisdictions, and brands.”
CDEI offers investors diversified exposure to U.S. companies that Calvert believes are successful at managing diversity, equity, and inclusion (DEI) issues. MSIM has committed to making an annual contribution to DEI initiatives or DEI-focused organizations in an amount equal to 0.02% of CDEI’s net annualized assets under management.
The active equity ETF (CVSE) will focus on U.S. large-cap companies that Calvert believes are addressing global environmental or societal challenges or are leaders in managing financially material environmental or social factors.
The active fixed income product (CVSB) will focus on investment-grade debt issuers, and the three index equity ETFs offer exposure to either U.S. large companies (CVLC), U.S. mid-cap companies (CVMC), or international companies (CVIE).
“These new ETFs will resonate strongly with investors who seek competitive investment results while promoting positive change and supporting companies that are leaders in improving long-term shareholder value and societal outcomes,” said Ted Eliopoulos, CEO and president of Calvert Research and Management.
All six ETFs seek to invest in companies that operate their businesses in a manner consistent with Calvert’s Principles for Responsible Investment, a framework for considering ESG factors.
Anthony Rochte, global head of ETFs at Morgan Stanley Investment Management, and John Streur, president and CEO of Calvert Research and Management, will be speaking at Exchange global leadership trends in asset management.