Morgan Stanley Investment Management (MSIM) today introduced its newest exchange-traded fund (ETF), the Parametric Equity Plus ETF (Ticker: PEPS), which focuses on a US large-cap equity strategy. Since the launch of MSIM’s inaugural ETFs in 2023, the platform has expanded to over $3.3 billion in ETF assets, offering a total of 16 strategies that cover a variety of asset classes and investment themes. Listed on the Nasdaq, the PEPS ETF marks the third Parametric-branded ETF and follows the conversion of three active fixed-income mutual funds into Eaton Vance ETFs earlier this year.
“We’re continuing to broaden MSIM’s ETF platform by introducing unique strategies that cater to the diverse needs of investors seeking exposure to various markets through an ETF structure,” said Brian Weinstein, Head of Global Markets at MSIM. “We’re pleased to have reached over $3.3 billion in ETF assets in less than two years, attracting both institutional and retail investors. Our goal is to build a robust platform that reflects our expertise across multiple asset classes.”
The PEPS Fund aims to deliver long-term capital appreciation by investing in US large-cap equities through Parametric’s direct indexing approach, designed to minimize tracking error relative to the benchmark index. The equity portfolio is further enhanced by a rules-based options strategy and risk management techniques. PEPS aims to offer investors equity market outperformance while maintaining a similar volatility and drawdown risk compared to the benchmark. The strategy may also incorporate Parametric’s renowned active tax management techniques.
“This new ETF strategy combines Parametric’s expertise in options-based strategies and direct indexing to provide US large-cap equity exposure with the potential for additional upside,” said Thomas Lee, Co-President and Chief Investment Officer at Parametric. “We are excited to expand the MSIM ETF platform and offer clients a cost-effective investment solution with daily liquidity.”
MSIM’s ETF platform now includes 16 total products, comprising three Parametric-branded equity- and options-based strategies, six Calvert-branded ETFs, and seven Eaton Vance-branded fixed-income strategies. Since its inception in early 2023, the platform has achieved significant growth, reaching over $3.3 billion in assets.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.6 trillion in assets under management or supervision as of September 30, 2024. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.
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.
