Morgan Stanley sets sights on next round of ETFs in comeback bid

Morgan Stanley is attempting to introduce its next wave of exchange-traded funds (ETFs) after returning to the ETF market in February, nearly three decades after helping to establish the now US$7.5 trillion industry. According to filings, applications for the Eaton Vance Parametric Dividend Premium Income ETF as well as those for the Eaton Vance Ultra-Short Income ETF, Eaton Vance High Yield ETF, and the Eaton Vance Intermediate Municipal Income ETF were submitted to the Securities and Exchange Commission on Monday, July 24. Eaton Vance was acquired by Morgan Stanley, which resulted in the closing of Parametric Portfolio Associates. Up until this February, when it introduced its first six contemporary ETFs, Morgan Stanley was one of just a few significant financial institutions that had no representation in the ETF market, despite having some of the first such products in the world in the 1990s. Anthony Rochte, global head of ETFs at Morgan Stanley, stated at the time that those debuts were the “first step in a series,” which prompted the applications on Monday. Its six ETFs with an emphasis on environmental, social, and governance have gathered assets worth around $400 million so far. Although Eaton Vance is well-known in the fixed-income industry, Bloomberg Intelligence claims that the market is already saturated. “I enjoy Eaton Vance personally. Although there are many short duration ETFs, it has a strong reputation in the fixed income market,” according to Athanasios Psarofagis, an analyst at Bloomberg Intelligence. “Therefore, it’s a good brand in a crowded space.”

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