MSIM Adds Latest Strategy, Parametric Equity Plus, to $3.3 Billion ETF Platform
Morgan Stanley Investment Management (MSIM) has launched the Parametric Equity Plus ETF (PEPS), expanding its ETF platform to $3.3 billion in assets across 16 strategies. The new US large-cap equity ETF, listed on Nasdaq, combines direct indexing capabilities with options and risk management strategies. This launch marks Parametric's third ETF and follows the recent conversion of three active fixed income mutual funds to Eaton Vance ETFs. The platform now includes three Parametric-branded, six Calvert-branded, and seven Eaton Vance-branded strategies.
Morgan Stanley Investment Management (MSIM) ha lanciato il Parametric Equity Plus ETF (PEPS), ampliando la sua piattaforma ETF a 3,3 miliardi di dollari in asset distribuiti su 16 strategie. Il nuovo ETF azionario statunitense a grande capitalizzazione, quotato su Nasdaq, unisce capacità di indicizzazione diretta con strategie di opzioni e gestione del rischio. Questo lancio rappresenta il terzo ETF di Parametric e segue la recente conversione di tre fondi comuni di investimento in obbligazioni attive in ETF di Eaton Vance. La piattaforma ora include tre strategie a marchio Parametric, sei a marchio Calvert e sette a marchio Eaton Vance.
Morgan Stanley Investment Management (MSIM) ha lanzado el Parametric Equity Plus ETF (PEPS), ampliando su plataforma de ETF a 3.3 mil millones de dólares en activos en 16 estrategias. El nuevo ETF de acciones de gran capitalización de EE. UU., listado en Nasdaq, combina capacidades de indexación directa con estrategias de opciones y gestión de riesgos. Este lanzamiento marca el tercer ETF de Parametric, y sigue a la reciente conversión de tres fondos mutuos de renta fija activa a ETFs de Eaton Vance. La plataforma ahora incluye tres estrategias de marca Parametric, seis de marca Calvert y siete de marca Eaton Vance.
모건 스탠리 투자 관리 (MSIM)이 파라메트릭 주식 플러스 ETF (PEPS)를 출시하여 16가지 전략으로 33억 달러의 자산을 보유한 ETF 플랫폼을 확장했습니다. 나스닥에 상장된 새로운 미국 대형주 ETF는 직접 인덱싱 기능과 옵션 및 위험 관리 전략을 결합합니다. 이번 출시로 파라메트릭의 세 번째 ETF가 되며 최근에 세 개의 액티브 고정 수익 뮤추얼 펀드를 이튼 반스 ETF로 전환한 후입니다. 플랫폼은 이제 파라메트릭 브랜드의 전략 3개, 칼버트 브랜드 6개, 이튼 반스 브랜드 7개를 포함합니다.
Morgan Stanley Investment Management (MSIM) a lancé le Parametric Equity Plus ETF (PEPS), élargissant sa plateforme ETF à 3,3 milliards de dollars d'actifs répartis sur 16 stratégies. Le nouvel ETF d'actions de grande capitalisation américaine, coté sur le Nasdaq, combine des capacités d'indexation directe avec des stratégies d'options et de gestion des risques. Ce lancement marque le troisième ETF de Parametric et fait suite à la conversion récente de trois fonds communs de placement à revenu fixe actifs en ETF Eaton Vance. La plateforme comprend désormais trois stratégies de marque Parametric, six de marque Calvert et sept de marque Eaton Vance.
Morgan Stanley Investment Management (MSIM) hat den Parametric Equity Plus ETF (PEPS) gestartet und damit seine ETF-Plattform auf 3,3 Milliarden Dollar an Vermögenswerten über 16 Strategien erweitert. Der neue US-ETF für Large-Cap-Aktien, der an der Nasdaq gelistet ist, kombiniert direkte Indexierungsfunktionen mit Optionen und Risikomanagementstrategien. Diese Einführung markiert den dritten ETF von Parametric und folgt der kürzlichen Umwandlung von drei aktiven Rentenfonds zu Eaton Vance ETFs. Die Plattform umfasst nun drei Parametric-Markenstrategien, sechs Calvert-Markenstrategien und sieben Eaton Vance-Markenstrategien.
- ETF platform growth to $3.3 billion in assets in less than two years
- Expansion to 16 total ETF strategies across multiple asset classes
- Successfully converted three fixed income mutual funds to ETFs
- None.
Insights
The launch of Parametric Equity Plus ETF (PEPS) marks a significant expansion of Morgan Stanley's ETF platform, which has impressively accumulated
The platform's success is particularly noteworthy in the competitive ETF landscape, with 16 diverse strategies spanning multiple asset classes. The integration of Parametric's tax management capabilities adds a compelling advantage for tax-sensitive investors. This strategic expansion aligns with the broader industry trend toward more sophisticated ETF offerings that blend active and passive management approaches.
“MSIM’s ETF platform continues to expand by introducing differentiated strategies that address the range of investor needs for accessing market exposures within an ETF structure,” said Brian Weinstein, Head of Global Markets at MSIM. “We are pleased with the strong growth to over
The Fund seeks to provide long term capital appreciation by investing in an underlying portfolio of US large cap equities through Parametric’s direct indexing capabilities, which seeks to minimize tracking error versus the benchmark index. The equity portfolio is then enhanced with a rules-based options strategy and a risk management strategy. PEPS potentially offers investors equity market outperformance with similar volatility and drawdown risk to the benchmark. Additionally, the strategy may utilize Parametric’s well-known active tax management techniques.
“This latest ETF strategy combines Parametric’s industry-leading capabilities in options-based strategies and direct indexing to offer US large-cap equity exposure plus additional upside potential,” said Thomas Lee, Co-President and Chief Investment Officer at Parametric. “We are pleased to add to the MSIM ETF platform and meet client demand for our investment expertise in a vehicle that offers daily liquidity at a lower cost.”
MSIM’s ETF platform is comprised of 16 total products including the three Parametric-branded equity- and options-based strategies, six Calvert-branded ETFs, and seven Eaton Vance-branded fixed income strategies. Launched in early 2023, the platform has grown to over
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About Morgan Stanley
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The Fund may suffer significant losses if the OCC is unable or unwilling to perform its obligations or becomes insolvent or otherwise unable to meet its obligations. FLEX Options may be less liquid than other securities or options. The Fund may be negatively impacted if market participants are not willing or able to enter into transactions involving FLEX Options with the Fund in relation to creation and redemption transactions. The Fund may experience losses from certain FLEX Option positions and certain FLEX Option positions may expire with little to no value. Authorized Participant Concentration Risk. The Fund has a limited number of intermediaries that act as authorized participants and none of these authorized participants is or will be obligated to engage in creation or redemption transactions. As a result, shares may trade at a discount to net asset value (“NAV”) and possibly face trading halts and/or delisting. Trading Risk. The market prices of shares of the Fund are expected to fluctuate, in some cases materially, in response to changes in the Fund's NAV, the intra-day value of holdings, and supply and demand for Shares. The adviser and subadviser cannot predict whether shares will trade above, below or at their NAV. Buying or selling shares in the secondary market may require paying brokerage commissions or other charges imposed by brokers as determined by that broker. Active Management Risk. In pursuing the Fund’s investment objective, the adviser and/or sub adviser has considerable leeway in deciding which investments to buy, hold or sell on a day-to-day basis, and which trading strategies to use. For example, the adviser and/or subadviser, in its discretion, may determine to use some permitted trading strategies while not using others. The success or failure of such decisions will affect the Fund’s performance. New Fund Risk. A new fund's performance may not represent how the fund is expected to or may perform in the long term. In addition, there is a limited operating history for investors to evaluate and the fund may not attract sufficient assets to achieve investment and trading efficiencies. Underlying Index and ETF Risk. The Fund invests in options and futures that derive their value from an underlying index or underlying ETF, and therefore, in addition to the performance of the Equity Portfolio, the Fund’s investment performance at least partially depends on the investment performance of the Underlying Index or Underlying ETF. The value of the Underlying Index or Underlying ETF will fluctuate over time based on fluctuations in the values of the securities that comprise the Underlying Index or Underlying ETF, which may be affected by changes to general economic conditions, expectations for future growth and profits, interest rates and the supply and demand for those securities. Correlation Risk. As an option approaches its expiration date, its value typically will increasingly move with the value of the Underlying Index or the Underlying ETF. However, the value of the options may vary prior to the expiration date because of related factors other than the value of the Underlying Index or the Underlying ETF, including the value of the options include interest rate changes and implied volatility levels of the Underlying Index or the Underlying ETF, among others. Clearing Member Risk. Transactions in some types of derivatives, including FLEX Options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house, such as the OCC, rather than a bank or broker and the Fund will hold cleared derivatives through accounts at clearing members. The Fund is also subject to the risk that a limited number of clearing members are willing to transact on the Fund’s behalf, which heightens the risks associated with a clearing member’s default. If a clearing member defaults, the Fund could lose some or all of the benefits of a transaction entered into by the Fund with the clearing member. The loss of a clearing member for the Fund to transact with could result in increased transaction costs and other operational issues that could impede the Fund’s ability to implement its investment strategy. Counterparty. Counterparty risk generally refers to the risk that a counterparty on a derivatives transaction may not be willing or able to perform its obligations under the derivatives contract, and the related risks of having concentrated exposure to such a counterparty. If an OCC clearing member or OCC becomes insolvent, the Fund may have its positions closed or experience delays or difficulties in closing or exercising its FLEX Options positions and the Fund could suffer significant losses. Tax Risk. The Fund intends to limit the overlap between its stock holdings and the stock holdings of the underlying ETF or underlying index of options to less than
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. Parametric Portfolio Associates LLC is the subadviser to the Parametric ETFs.
ETFs are distributed by Foreside Fund Services LLC.
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Media Contact: Lauren Bellmare
Lauren.Bellmare@MorganStanley.com
Source: Morgan Stanley Investment Management
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