Morgan Stanley IM Adds US Large-Cap Equity ETF to Lineup

Morgan Stanley Investment Management launched a U.S large-cap equity strategy ETF, Parametric Equity Plus ETF (PEPS). The ETF aims to invest 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.

“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 CIO at Parametric.

Listed on the Nasdaq, the latest addition is the third Parametric ETF brought to market and follows the conversion of three active fixed income mutual funds to Eaton Vance ETFs earlier this year.

MSIM’s ETF platform is comprised of 16 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 $3.3 billion in assets.