Almost three decades after coining the term "exchange-traded fund," Morgan Stanley is finally set to enter the $6.9 trillion ETF arena with its own products.
The James Gorman-led bank applied for four socially conscious funds on Tuesday tracking U.S. and international equities, according to a Tuesday filing with U.S. regulators. The filing lands months after Morgan Stanley revealed plans to create a dedicated ETF platform in an internal memo.
The planned launches from Morgan Stanley are the latest in a series of investment giants caving to the ETF industry, with the likes of Capital Group and Neuberger Berman Group LLC taking the plunge in recent months. Given that the bank's asset management arm oversees $1.4 trillion, Morgan Stanley's moves will make a particular splash, according to Bloomberg Intelligence.
"There's a new issuer every month, practically, but Morgan Stanley is a beast of a company," said BI's senior ETF analyst Eric Balchunas. "Anything they do in this space will be interesting and notable."
Tuesday's filings include plans for the Calvert International Responsible Index ETF, the Calvert U.S. Large-Cap Core Responsible Index ETF, the Calvert U.S. Large-Cap Diversity, Equity and Inclusion Index ETF and the Calvert U.S. Mid-Cap Core Responsible Index ETF. Morgan Stanley acquired the Calvert label with the 2020 purchase of asset manager Eaton Vance Corp.
Tickers and fees for the funds were not yet listed. A Morgan Stanley spokesperson declined to comment on the filings, citing regulatory rules.
