Morgan Stanley Introduces Preferred Securities ETF with 0.20% Net Fee
Morgan Stanley Investment Management launched the Eaton Vance Preferred Securities and Income ETF, its 12th fixed-income ETF since 2023, to pursue total return and income. It charges a 0.39% gross expense ratio capped at 0.20% net through June 30, 2026, and focuses on preferred securities for qualified dividend income.
1. ETF Launch and Strategy
Morgan Stanley Investment Management has launched the Eaton Vance Preferred Securities and Income ETF as an actively managed vehicle seeking total return and current income through investments in preferred securities and other income-producing instruments.
2. Fee Structure and Expense Ratios
The fund carries a gross expense ratio of 0.39% and benefits from a voluntary fee waiver capping its net expense ratio at 0.20% through June 30, 2026.
3. Portfolio Objectives and Composition
The portfolio management team employs a research-driven process emphasizing preferred securities with qualified dividend income to enhance after-tax yields and add diversification benefits relative to traditional fixed-income holdings.
4. Platform Growth and AUM
This ETF is the 12th actively managed fixed-income strategy introduced since 2023 and the 19th overall on the Morgan Stanley Investment Management ETF platform, which manages $1.9 trillion in global assets.