2022-10-07MSETFTrust_PassiveFundsProspectus_January2023
The
information in this Preliminary Prospectus is not complete and may be
changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is effective. This
Preliminary Prospectus is not an offer to sell
these securities and is not soliciting offers to buy these securities in any
jurisdiction where the offer or sale is not permitted.
Subject
to Completion. Dated January
20, 2023
Calvert
US Select Equity ETF
Prospectus | January
[ ], 2023
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Ticker
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Exchange |
CVSE |
NYSE
Arca |
The
Securities and Exchange Commission (“SEC”) has not approved or disapproved these
securities or passed upon the adequacy
of this Prospectus. Any representation to the contrary is a criminal
offense.
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A-1 |
Calvert
US Select Equity ETF
Investment
Objective
Calvert US
Select Equity ETF (the “Fund”) seeks to provide long-term capital
appreciation.
Fees
and Expenses
The table
below describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You may
pay fees other
than the fees and expenses of the Fund, such as brokerage commissions and other
fees charged by financial intermediaries,
which are not reflected in the tables and examples
below.
|
| |
Management
Fee1
|
% |
|
Other
Expenses2
|
% |
|
Total
Annual Fund Operating Expenses |
0.29% |
|
1 |
[The
Fund’s management agreement provides that the Fund’s “Adviser,” Morgan
Stanley Investment Management Inc., will pay substantially all expenses
of
the Fund (including expenses of Morgan Stanley ETF Trust (the “Trust”)
relating to the Fund), except for the distribution
fees, if any, brokerage expenses,
acquired fund fees and expenses,
taxes, interest, litigation expenses, and other extraordinary expenses,
including the costs of proxies, not
incurred
in the ordinary course of the Fund’s
business.] |
2 |
[Other
Expenses have been estimated for the current fiscal
year.] |
Example
The
example below is intended to help you compare the cost of investing in the Fund
with the cost of investing in other funds. The Example
does not take into account brokerage commissions that you pay when purchasing or
selling shares of the
Fund.
The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then sell your shares at the end of those periods.
The example also assumes your investment has a 5% return each year and the
Fund’s operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the Example, affect the Fund’s performance.
Because the Fund had not commenced operations as of the most recent fiscal year
end, no portfolio turnover rate is available
for the Fund.
Principal
Investment Strategies
Under
normal circumstances, at least 80% of the Fund’s net assets (plus any borrowings
for investment purposes) will be invested in the equity
securities of U.S. issuers. This policy may be changed without shareholder
approval; however, shareholders would be notified
upon 60 days’ notice in writing of any
changes.
The Fund
is actively managed, not designed to track a benchmark, and therefore not
constrained by the composition of a benchmark.
The Fund
primarily invests in the equity securities of large capitalization U.S. issuers
that are involved in economic activities that address
global environmental or societal challenges that relate to areas such as
environmental sustainability and resource efficiency, diversity,
equity and inclusion, respect for human rights, product responsibility, human
capital management and accountable governance
and transparent operations, or are leaders in managing financially material
environmental or social risks and opportunities,
such as carbon emission management and diversity, equity and inclusion.
Economic
activities that address environmental
and/or societal challenges vary based on the respective industry a company
operates in, but examples may include: providing
access to finance to demographics that are typically excluded from traditional
financing channels, providing affordable and accessible
healthy food and other products, growing electric vehicle sales and strategy,
and efficient management of natural resources. As
described below, the Adviser utilizes a quantitative and qualitative research
process that
applies the Calvert Principles for Responsible
Investment (a copy of which is included as an appendix to the Fund’s prospectus)
to define the investment universe for the
Fund. Calvert
Research and Management (“Calvert”), on behalf of the Adviser, may engage
with
company
management regarding
financially material environmental, social and governance (“ESG”) issues in
pursuit of improving environmental and social outcomes. The
Adviser gives due consideration to the relevance and potential materiality of
sustainability risks for a particular investment
opportunity or for the portfolio as a whole in the context of the investment
objective and intended time horizon for holding a
particular security. In order to mitigate Responsible Investing risks, the
Adviser may (i)
determine not to hold, determine
Calvert
US Select Equity ETF (Con’t)
to sell or
otherwise determine to underweight
a security relative
to the Fund’s benchmark, the Russell 1000® Index; (ii) engage Calvert to
discuss potential engagement with company management on its
material ESG risks or opportunities (e.g., climate
change, diversity,
labor and human rights and ESG disclosure); or
(iii) make other adjustments to the Fund’s portfolio.
Through a
qualitative and quantitative process (the “Selection Process”), the Adviser
seeks to identify companies that are performing in the top
20-40% of their peer group with respect to environmental or social factors
determined to be financially material to the company
based on Calvert and/or the Adviser’s proprietary research (each, a “Select
Company” and collectively, the “Select Companies”). A
company may also be determined to be a Select Company based on leadership or
significant improvement of such company’s
financially material environmental or social risks or opportunities. Once the
Fund’s investment universe of Select Companies
(the “Investment Universe”) has been established, the Adviser then seeks to
optimize the Fund’s Investment Universe by selecting
and weighting Select Companies that have better diversity and lower carbon risk,
while also minimizing factor risks relative to the
Russell 1000® Index (the “Optimization Process”). The Adviser seeks to ensure
that at least 90% of the companies in the Fund’s
portfolio are reviewed via the Selection
Process.
In
managing the Fund, the Adviser also takes
into account the long-term carbon reduction objectives of the Paris Agreement,
an international
treaty on climate change with the goal of limiting global warming to well below
2 degrees Celsius, preferably to 1.5 degrees.
The Adviser
measures a company’s carbon footprint by its weighted average carbon intensity,
which is defined as metric tons of
greenhouse gas emissions per $1 million of revenue. The Fund seeks
to maintain a portfolio with an
overall carbon footprint that is
substantially lower than the carbon footprint of the Russell 1000® Index.
Individual
securities held by the Fund, however, may have carbon
footprints that are higher than the average carbon footprint of the Russell
1000® Index and/or the carbon footprint of certain Russell
1000® Index constituents. The long-term
carbon reduction objectives of the Paris Agreement may
warrant the Adviser to revise the
targeted range of carbon
reduction by companies it seeks to invest in over time. ESG analysis
is
determined by Calvert, using a
combination of third party and customized ESG data as a base, and
having
regard to ESG themes such as environmental sustainability
and resource efficiency, diversity, equity and inclusion, respect for human
rights, product responsibility, human capital management
and accountable governance and transparent
operations.
In
addition, the Fund
will seek to maintain higher levels of diversity level than
the Russell 1000® Index as
measured by weighted average
number of women at the board level. The
Adviser obtains board
gender diversity
data from third party vendors, which
provide
data on the number of women on boards at the issuer level. The Adviser collects
this data for all
names in its investment universe
for which data is available and calculates the weighted average for the Fund and
the Russell 1000® Index.
The Fund
may, but it is not required to, use derivative instruments for a variety of
purposes, including hedging, risk management, portfolio
management or to earn income. The Fund’s use of derivatives may involve the
purchase and sale of derivative instruments such as
futures, options, swaps, contracts for difference (“CFDs”) and other related
instruments and techniques. The Fund may utilize
foreign currency forward exchange contracts, which are also derivatives, in
connection with any investments in foreign securities.
Derivative instruments used by the Fund will be counted toward the Fund’s 80%
policy discussed above to the extent they have
economic characteristics similar to the securities included within that
policy.
Although
the Fund’s ESG factors and responsible investing criteria are typically
considered with respect to each company or issuer in which the
Fund invests, other factors may be considered by the portfolio management team.
In assessing investments, Calvert generally
focuses on the ESG factors and responsible investing criteria relevant to the
issuer’s operations, and an issuer may be acceptable
for investment based primarily on such assessment. As a result, securities may
be deemed suitable for investment even if the issuer
does not operate in accordance with all elements of the Fund’s ESG factors and
responsible investing criteria. For instance, the Fund
may also invest in issuers that Calvert believes are likely to operate in a
manner consistent with the Calvert Principles pending
Calvert’s engagement activity with such issuer. Additionally, the Fund may
invest in cash, money market instruments and ETFs. Such
investments will generally not be subject to the Fund’s responsible investment
analysis and will not be required to be consistent
with the Fund’s ESG factors and responsible investment criteria otherwise
applicable to investments made by the Fund. In addition,
ETFs in which the Fund may invest may hold securities of issuers that do not
operate in accordance with the Fund’s ESG factors
and responsible investment criteria.
Principal
Risks
There is
no assurance that the Fund will achieve its investment objective, and you
can lose money investing in this Fund. The
principal
risks of investing in the Fund include:
• |
Equity
Securities. In
general, prices of equity securities are more volatile than those of
fixed-income securities. The prices of equity securities
fluctuate, and sometimes widely fluctuate, in response to activities
specific to the issuer of the security as well as factors unrelated
to the fundamental condition of the issuer, including general market,
economic and political
conditions. |
• |
Responsible
Investing.
Investing primarily in responsible investments carries the risk that,
under certain market conditions, the Fund
may underperform funds that do not utilize a responsible investment
strategy. The application of responsible investment criteria
may affect the Fund’s exposure to certain sectors or types of investments,
and may impact the Fund’s relative investment
|
Calvert
US Select Equity ETF (Con’t)
|
performance
depending on whether such sectors or investments are in or out of favor in
the market. An investment’s ESG performance,
or Calvert’s and/or the Adviser’s assessment of such performance may
change over time, which could cause the Fund to
temporarily hold securities that do not comply with the Fund’s responsible
investment criteria. In evaluating an investment, Calvert
and the Adviser are dependent upon information and data that may be
incomplete, inaccurate or unavailable, which could adversely
affect the analysis of the ESG factors relevant to a particular
investment. Successful application of the Fund’s responsible investment
strategy will depend on Calvert’s and/or the Adviser’s skill in properly
identifying and analyzing material ESG
issues. |
• |
Liquidity. The
Fund may make investments that are illiquid or restricted or that may
become less liquid in response to overall economic
conditions or adverse investor perceptions, and which may entail greater
risk than investments in other types of securities.
These investments may be more difficult to value or sell, particularly in
times of market turmoil, and there may be little trading
in the secondary market available for particular securities. If the Fund
is forced to sell an illiquid or restricted security to meet
cash needs, it may be forced to sell the security at a loss or for less
than its fair
value. |
• |
Market
and Geopolitical Risk.
The
value of your investment in the Fund is based on the values of the Fund’s
investments, which may
change due to economic and other events that affect markets generally, as
well as those that affect particular regions, countries,
industries, companies or governments. These events may be sudden and
unexpected, and could adversely affect the liquidity
of the Fund’s investments, which may in turn impact valuation, the Fund’s
ability to sell securities and/or its ability to meet
redemptions. The risks associated with these developments may be magnified
if certain social, political, economic and other conditions
and events (such as war, natural disasters, epidemics and pandemics,
terrorism, conflicts and social unrest) adversely interrupt
the global economy and financial markets. It is difficult to predict when
events affecting the U.S. or global financial markets
may occur, the effects that such events may have and the duration of those
effects (which may last for extended periods). These
events may negatively impact broad segments of businesses and populations
and have a significant and rapid negative impact
on the performance of the Fund’s investments, adversely affect and
increase the volatility of the Fund’s share price and exacerbate
pre-existing risks to the
Fund. |
• |
Derivatives. A
derivative instrument often has risks similar to its underlying asset and
may have additional risks, including imperfect
correlation between the value of the derivative and the underlying asset,
risks of default by the counterparty to certain transactions,
magnification of losses incurred due to changes in the market value of the
securities, instruments, indices or interest rates
to which the derivative instrument relates, risks that the transactions
may not be liquid, risks arising from margin requirements
and risks arising from mispricing or valuation complexity. Certain
derivative transactions may give rise to a form of leverage.
Leverage magnifies the potential for gain and the risk of
loss. |
• |
Authorized
Participant Concentration Risk.
Only
an authorized participant may engage in creation or redemption
transactions directly
with the Fund. The Fund has a limited number of intermediaries that act as
authorized participants and none of these authorized
participants is or will be obligated to engage in creation or redemption
transactions. To the extent that these intermediaries
exit the business or are unable to or choose not to proceed with creation
and/or redemption orders with respect to the
Fund and no other authorized participant creates or redeems, shares may
trade at a discount to net asset value (“NAV”) and possibly
face trading halts and/or
delisting. |
• |
Active
Management Risk. In
pursuing the Fund’s investment objective, the Adviser has considerable
leeway in deciding which investments
to buy, hold or sell on a day-to-day basis, and which trading strategies
to use. For example, the Adviser, in its discretion,
may determine to use some permitted trading strategies while not using
others. The success or failure of such decisions will
affect the Fund’s
performance. |
• |
Trading
Risk.
The
market prices of shares are
expected to fluctuate, in some cases materially, in response to changes in
the Fund’s NAV,
the intra-day value of the Fund’s holdings, and supply and demand for
shares.
The Adviser cannot predict whether shares
will
trade above, below or at their NAV. Disruptions to creations and
redemptions, the existence of significant market volatility or
potential
lack of an active trading market for the shares
(including through a trading halt), as well as other factors, may result
in the
shares
trading significantly above (at a premium) or below (at a discount) to NAV
or to the intraday value of the Fund’s holdings.
Buying or selling shares in
the secondary market may require paying brokerage commissions or other
charges imposed by
brokers as determined by that broker. Brokerage commissions are often a
fixed amount and may be a significant proportional cost
when seeking to buy or sell relatively small amounts of shares. In
addition, the market price of shares,
like the price of any exchange-traded
security, includes a “bid-ask spread” charged by the market makers or
other participants that trade the particular security.
The spread of a Fund’s shares
varies over time based on the Fund’s trading volume and market liquidity
and may increase if
the Fund’s trading volume, the spread of the Fund’s underlying securities,
or market liquidity
decrease. |
• |
New
Fund Risk.
A
new fund’s performance may not represent how the fund is expected to or
may perform in the long term. In addition,
new funds have limited operating histories for investors to evaluate and
new funds may not attract sufficient assets to achieve
investment and trading efficiencies.
|
Shares of
the Fund are not bank deposits and are not guaranteed or insured by the Federal
Deposit Insurance Corporation or any other
government agency.
Calvert
US Select Equity ETF (Con’t)
Performance
Information
As of the
date hereof, the Fund has not yet completed a full calendar year of investment
operations. Upon the
completion of a full calendar
year of investment operations by the Fund, this section will include charts that
provide some indication of the risks of an investment
in the Fund, by showing the difference in annual total returns, highest and
lowest quarterly returns and average annual total
returns (before and after taxes) compared to the benchmark index selected for
the Fund. Performance information for the Fund will be
available online at www.calvert.com or by
calling toll-free 800-836-2414.
Fund
Management
Adviser. Morgan
Stanley Investment Management Inc.
Portfolio
Managers.
Information about the members jointly and primarily responsible for the
day-to-day management of the Fund is shown
below:
|
| |
Name |
Title
with Adviser |
Date
Began Managing Fund |
Jade
Huang |
Managing
Director |
Since
Inception |
Christopher
Madden |
Managing
Director |
Since
Inception |
James
Reber |
Managing
Director |
Since
Inception |
Thomas
C. Seto |
Managing
Director |
Since
Inception |
Matthew
Maillet |
Executive
Director |
Since
Inception |
Purchase
and Sale of Fund Shares
Individual
shares of the Fund may only be purchased and sold in secondary market
transactions through a broker or dealer at market price.
Because shares trade at market prices, rather than NAV, shares of the Fund may
trade at a price greater than NAV (i.e., a premium)
or less than NAV (i.e., a discount).
You may
incur costs attributable to the difference between the highest price a buyer is
willing to pay for shares (bid) and the lowest price a
seller is willing to accept for shares (ask) (the “bid-ask spread”) when buying
or selling shares in the secondary market.
Recent
information, including information about the Fund’s NAV, market price, premiums
and discounts, and bid-ask spreads (when
available), will be available on the Fund’s website at
www.calvert.com.
Tax
Information
The Fund
intends to make dividends and distributions that may be taxed as ordinary income
or capital gains, unless you are investing through a
tax-deferred arrangement, such as a 401(k) plan or an individual retirement
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Fund through a financial intermediary (such as a bank),
the Adviser and/or Foreside
Fund Services, LLC (the
“Distributor”) may pay the financial intermediary for the sale of Fund shares
and related services. These payments, which may be
significant in amount, may create a conflict of interest by influencing the
financial intermediary and your salesperson to recommend
the Fund over another investment. Ask your salesperson or visit your financial
intermediary’s website for more
information.
Calvert | Details
of the Fund
Calvert
US Select Equity ETF
Investment
Objective
The Fund’s
investment objective is to seek to provide long-term capital
appreciation.
The Fund’s
investment objective may be changed by the Trust’s Board of Trustees without
shareholder approval, but no change is anticipated.
If the Fund’s investment objective changes, the Fund will notify shareholders
and shareholders should consider whether the Fund
remains an appropriate investment in light of the change.
Approach
The Fund
seeks to achieve its investment objective by primarily investing in U.S.
equity
securities, including common stock, and
preferred
stock of
companies that are involved in economic activities that address global
environmental or societal challenges that relate to
areas such as environmental sustainability and resource efficiency, diversity,
equity and inclusion, respect for human rights, product
responsibility, human capital management and accountable governance and
transparent operations, or are leaders in managing
financially material environmental or social risks and opportunities, such as
carbon emission management and diversity, equity and
inclusion.
Process
Under
normal circumstances, at least 80% of the Fund’s net assets (plus any borrowings
for investment purposes) will be invested in the equity
securities of U.S. issuers. This policy may be changed without shareholder
approval; however, shareholders would be notified
upon 60 days’ notice in writing of any changes.
The Fund
is actively managed, not designed to track a benchmark, and therefore not
constrained by the composition of a benchmark.
The Fund
primarily invests in the equity securities of large capitalization U.S. issuers
that are involved in economic activities that address
global environmental or societal challenges that relate to areas such as
environmental sustainability and resource efficiency, diversity,
equity and inclusion, respect for human rights, product responsibility, human
capital management and accountable governance
and transparent operations, or are leaders in managing financially material
environmental or social risks and opportunities,
such as carbon emission management and diversity, equity and inclusion.
Economic
activities that address environmental
and/or societal challenges vary based on the respective industry a company
operates in, but examples may include: providing
access to finance to demographics that are typically excluded from traditional
financing channels, providing affordable and accessible
healthy food and other products, growing electric vehicle sales and strategy,
and efficient management of natural resources. The
Adviser incorporates company
identification, portfolio
optimization, and corporate
engagement in implementing the Fund’s investment
strategy. The
Adviser utilizes a quantitative and qualitative research process regarding ESG
factors for each
potential investment
that
applies the Calvert Principles for Responsible Investment (a copy of which is
included as an appendix to this
prospectus)
to define the investment universe for the Fund.
Through
a
qualitative and quantitative process (the “Selection Process”), the
Adviser seeks to identify companies that are performing in the top
20-40% of their peer group with
respect to
environmental or social factors determined to be financially material to the
company based on
Calvert and/or the Adviser’s proprietary research (each, a “Select Company” and
collectively, the “Select Companies”).
A company may also be determined to be a Select Company based on leadership or
significant improvement of such company’s
financially material environmental or social risks or opportunities. Once the
Fund’s investment universe of Select Companies
(the “Investment Universe”) has been
established, the Adviser then seeks to
optimize the Fund’s Investment Universe by selecting
and weighting Select companies
that have better diversity
and lower carbon risk, while also
minimizing
factor risks relative to the
Russell 1000® Index
(the “Optimization Process”). The Adviser seeks to ensure
that at least 90% of the companies in the
Fund’s
portfolio are reviewed via the Selection Process.
Calvert,
on behalf of the Adviser, may engage with
company
management regarding
financially material ESG issues in pursuit
of improving
environmental and social outcomes. The
Adviser gives due consideration to the relevance and potential materiality of
sustainability
risks for a particular investment opportunity or for the portfolio as a whole in
the context of the investment objective and
intended time horizon for holding a particular security. In order to mitigate
Responsible Investing risks, the Adviser may (i)
determine
not to hold, determine to sell or otherwise determine to
underweight a security relative
to the Fund’s benchmark, the Russell
1000® Index; (ii) engage Calvert to discuss potential engagement with company
management on its
material ESG risks or opportunities
(e.g., climate
change, diversity, labor and human rights and ESG disclosure); or
(iii) make other adjustments to the Fund’s
portfolio.
In
managing the Fund, the Adviser also takes
into account the long-term carbon reduction objectives of the Paris Agreement,
an international
treaty on climate change with the goal of limiting global warming to well below
2 degrees Celsius, preferably to 1.5 degrees.
The Adviser
measures a company’s carbon footprint by its weighted average carbon intensity,
which is defined as metric tons of
greenhouse gas emissions per $1 million of revenue. The Fund seeks
to maintain a portfolio with an
overall carbon footprint that is
substantially lower than the carbon footprint of the Russell 1000® Index.
Individual securities held by the Fund, however, may have carbon
footprints that are higher than the average carbon footprint of the Russell
1000® Index and/or the carbon footprint of certain Russell
1000® Index constituents. The long-term
carbon reduction objectives of the Paris Agreement may
warrant the Adviser to
Calvert | Details
of the Fund
Calvert
US Select Equity ETF (Con’t)
revise the
targeted range of carbon
reduction by companies it seeks to invest in over time. ESG analysis
is
determined by Calvert, using a
combination of third party and customized ESG data as a base, and
having
regard to ESG themes such as environmental sustainability
and resource efficiency, diversity, equity and inclusion, respect for human
rights, product responsibility, human capital management
and accountable governance and transparent operations.
In
addition, the Fund
will seek to maintain higher levels of diversity level than
the Russell 1000® Index as
measured by weighted average
number of women at the board level. The
Adviser obtains board
gender diversity
data from third party vendors, which
provide
data on the number of women on boards at the issuer level. The Adviser collects
this data for all
names in its investment universe
for which data is available and calculates the weighted average for the Fund and
the Russell 1000®
Index.
The Fund
may, but it is not required to, use derivative instruments for a variety of
purposes, including hedging, risk management, portfolio
management or to earn income. The Fund’s use of derivatives may involve the
purchase and sale of derivative instruments such as
futures, options, swaps, contracts for difference (“CFDs”) and other related
instruments and techniques. The Fund may utilize
foreign currency forward exchange contracts, which are also derivatives, in
connection with any investments in foreign securities.
Derivative instruments used by the Fund will be counted toward the Fund’s 80%
policy discussed above to the extent they have
economic characteristics similar to the securities included within that
policy.
The Fund
may invest up to 20% of its net assets in the securities of non-U.S. issuers.
The Fund may invest in depositary receipts (such as
American Depository Receipts (ADRs), Global Depositary Receipts (GDRs), and
European Depository Receipts (EDRs)), which
evidence ownership of shares of a foreign issuer and are alternatives to
directly purchasing the underlying foreign securities in their
national markets and currencies.
Although
the Fund’s ESG factors and responsible investing criteria are typically
considered with respect to each company or issuer in which the
Fund invests, other factors may be considered by the portfolio management team.
In assessing investments, Calvert generally
focuses on the ESG factors and responsible investing criteria relevant to the
issuer’s operations, and an issuer may be acceptable
for investment based primarily on such assessment. As a result, securities may
be deemed suitable for investment even if the issuer
does not operate in accordance with all elements of the Fund’s ESG factors and
responsible investing criteria. For instance, the Fund
may also invest in issuers that Calvert believes are likely to operate in a
manner consistent with the Calvert Principles pending
Calvert’s engagement activity with such issuer. Additionally, the Fund may
invest in cash, money market instruments and ETFs. Such
investments will generally not be subject to the Fund’s responsible investment
analysis and will not be required to be consistent
with the Fund’s ESG factors and responsible investment criteria otherwise
applicable to investments made by the Fund. In addition,
ETFs in which the Fund may invest may hold securities of issuers that do not
operate in accordance with the Fund’s ESG factors
and responsible investment criteria.
Related
Performance Information of Composite
The Fund
has recently commenced operations and has no performance history. An affiliate
of the Adviser,
Calvert, manages a
composite
(the
“Composite”) that
consists of an account
and a mutual fund managed by two of the
portfolio managers that each
have
a
substantially
similar investment objective, policies
and investment strategies as the Fund (the “Composite
Accounts”) and the
table
below provides supplemental performance information for the Composite. The
performance of the Composite is net of fees and expenses,
which, depending on the account may be lower or higher than those charged to the
Fund. Since fees, commissions and taxes may
differ for the Composite and the Fund, performance data for identical periods
may differ. The Composite reflects
transaction
costs, but does not reflect (i) custody fees, Rule 12b-1 fees or other expenses
normally paid by mutual funds that are unrelated
to the investment management services provided by an adviser or (ii) a deduction
of any applicable sales load(s) of the Composite
Account. If these expenses were included, returns would be lower. The Composite
performance
information does not represent
the performance of the Fund. It is provided to illustrate the past performance
of accounts advised by an affiliate of the Adviser.
The
portfolio managers for the Composite Accounts are two of the portfolio
managers listed for the Fund. These
two individuals
have sole or joint responsibility for
managing the Composite Accounts.
These two individuals have ultimate decision-making
authority for both the Composite Accounts and the Fund.
The
historical performance data for the Composite should not be considered a
substitute for the Fund’s performance and should not be
considered an indication of the Fund’s future performance. You should not assume
that the Fund will have the same performance as the
Composite. An investment in the Fund can lose value. Although the Fund and the
Composite Accounts
have a
substantially similar
investment objective, policies and investment strategies, differences in asset
size and cash flows, among
other things, may
result in
differences in security selection, relative weightings or differences in the
price paid for certain securities. As such, the investments
held by the Fund may not be identical to the investments held by the Composite
Accounts
and the
future performance of the
Fund will differ from the performance of the Composite.
One of the
Composite Accounts in the Composite is not subject to certain investment
limitations, diversification requirements and other
restrictions imposed on registered investment companies, such as the Fund, by
the 1940 Act and the Internal Revenue Code of 1986, as
amended, which, if applicable, may have adversely affected the performance of
the Composite.
Calvert | Details
of the Fund
Calvert
US Select Equity ETF (Con’t)
Performance
of the Composite
Average
Annual Total Returns
|
| |
For
Periods Ended December 31, 2022 |
|
|
|
1
Year |
Since Inception1
|
Composite |
-20.49% |
10.79% |
Russell
1000® Index2
|
-19.13% |
10.72% |
1 |
The
inception date of the oldest account in the Composite is June 1,
2020. |
2 |
Russell
1000® Index is an unmanaged index of U.S. large-cap stocks. The
Russell 1000® Index measures the performance of the large-cap segment of
the
US equity universe. It is a subset of the Russell 3000® Index and includes
approximately 1,000 of the largest securities based on a combination of
their
market cap and current index membership. It is not possible to invest
directly in an index. |
Calvert | Additional
Information About the Fund’s Investment Strategies and Related
Risks
Additional
Information About the Fund’s Investment Strategies and Related
Risks
|
| |
This
section discusses additional information relating to the
Fund’s investment strategies, other types of investments that
the
Fund may make and related risk factors. The Fund’s investment
practices and limitations are described in more detail in the
Statement of Additional Information (“SAI”), which is incorporated by
reference and legally is a part of this Prospectus. For
details on how to obtain a copy of the SAI and other reports and
information, see the back cover of this
Prospectus. |
Economies
and financial markets throughout the world have experienced periods of increased
volatility, uncertainty and distress and disruption
to consumer demand, economic output and supply chains as a result of conditions
associated with the COVID-19 pandemic.
To the extent these conditions continue, the risks associated with an investment
in the Fund, including those described below,
could be heightened and the Fund’s investments (and thus a shareholder’s
investment in the Fund) may be particularly susceptible
to sudden and substantial losses, reduced yield or income or other adverse
developments. The duration and extent of COVID-19
and associated economic and market conditions and uncertainty over the long term
cannot be reasonably estimated at this time.
The ultimate impact of COVID-19 and the extent to which the associated
conditions impact the Fund will also depend on future
developments, which are highly uncertain, difficult to accurately predict and
subject to change at any time.
The name,
investment objective and policies of the Fund is similar to another fund advised
by the Adviser or its affiliates. However, the
investment results of the Fund may be higher or lower than, and there is no
guarantee that the investment results of the Fund will be
comparable to, any other funds. A new fund or a fund with fewer assets under
management may be more significantly affected by purchases
and redemptions of its Creation Units (as defined below) than a fund with
relatively greater assets under management would be
affected by purchases and redemptions of its shares. As compared to a larger
fund, a new or smaller fund is more likely to sell a
comparatively large portion of its portfolio to meet significant Creation Unit
redemptions or invest a comparatively large amount of
cash to facilitate Creation Unit purchases, in each case when the fund otherwise
would not seek to do so. Such transactions
may cause funds to make investment decisions at inopportune times or prices or
miss attractive investment opportunities.
Such transactions may also accelerate the realization of taxable income if sales
of securities resulted in gains and the fund
redeems Creation Units for cash, or otherwise cause a fund to perform
differently than intended. While such risks may apply to funds of
any size, such risks are heightened in funds with fewer assets under management.
In addition, new funds may not be able to fully
implement their investment strategy immediately upon commencing investment
operations, which could reduce investment performance.
Equity
Securities
Equity
securities may include common and preferred stocks, convertible securities and
equity-linked securities, rights and warrants to purchase
common stocks, depositary receipts, shares of investment companies, limited
partnership interests and other specialty securities
having equity features. The Fund may invest in equity securities that are
publicly traded on securities exchanges or over-the-counter
(“OTC”) or in equity securities that are not publicly traded. Securities that
are not publicly traded may be more difficult to value or
sell and their value may fluctuate more dramatically than other securities. The
prices of convertible securities are affected by changes
similar to those of equity and fixed-income securities.
A
depositary receipt is generally issued by a bank or financial institution and
represents the common stock or other equity securities of a
foreign company. Depositary receipts involve many of the same risks as those
associated with direct investment in foreign securities.
In addition, the underlying issuers of certain depositary receipts, particularly
unsponsored or unregistered depositary receipts,
are under no obligation to distribute shareholder communications to the holders
of such receipts, or to pass through to them any voting
rights with respect to the deposited securities.
The value
of equity securities and related instruments may decline in response to adverse
changes in the economy or the economic outlook;
deterioration in investor sentiment; interest rate, currency, and commodity
price fluctuations; adverse geopolitical, social or environmental
developments; issuer- and sector-specific considerations; unexpected trading
activity among retail investors; and other factors.
Market conditions may affect certain types of stocks to a greater extent than
other types of stocks. If the stock market declines,
the value of Fund shares will also likely decline. Although stock prices can
rebound, there is no assurance that values will return to
previous levels
Market
and Geopolitical Risk
The value
of your investment in the Fund is based on the values of the Fund’s investments,
which may change due to economic and other
events that affect markets generally, as well as those that affect particular
regions, countries, industries, companies or governments.
Price movements, sometimes called volatility, may be greater or less depending
on the types of securities the Fund owns and the
markets in which the securities trade. Volatility and disruption in financial
markets and economies may be sudden and unexpected,
expose the Fund to greater risk, including risks associated with reduced market
liquidity and fair valuation, and adversely affect the
Fund’s operations. For example, the Adviser potentially will be prevented from
executing investment decisions at an advantageous
time or price as a result of any domestic or global market disruptions and
reduced market liquidity may impact the Fund’s
ability to sell securities to meet redemptions.
Calvert | Additional
Information About the Fund’s Investment Strategies and Related
Risks
Additional
Information About the Fund’s Investment Strategies and Related Risks
(Con’t)
The
increasing interconnectivity between global economies and financial markets
increases the likelihood that events or conditions in one region
or financial market may adversely impact issuers in a different country, region
or financial market. Securities in the Fund’s portfolio
may underperform due to inflation (or expectations for inflation), interest
rates, global demand for particular products or resources,
natural disasters, health emergencies (such as epidemics and pandemics),
terrorism, regulatory events and governmental or quasi-governmental
actions. The occurrence of global events similar to those in recent years, such
as terrorist attacks around the world,
natural disasters, health emergencies, social and political discord or debt
crises and downgrades, among others, may result in market
volatility and may have long term effects on both the U.S. and global financial
markets. Inflation rates may change frequently and
significantly because of various factors, including unexpected shifts in the
domestic or global economy and changes in monetary or
economic policies (or expectations that these policies may change). Changes in
inflation rates may adversely affect market and economic
conditions, the Fund’s investments and an investment in the Fund. Other
financial, economic and other global market and social
developments or disruptions may result in similar adverse circumstances, and it
is difficult to predict when similar events affecting
the U.S. or global financial markets may occur, the effects that such events may
have and the duration of those effects (which may
last for extended periods). In general, the securities or other instruments that
the Adviser believes represent an attractive investment
opportunity or in which the Fund seeks to invest may be unavailable entirely or
in the specific quantities sought by the Fund. As a
result, the Fund may need to obtain the desired exposure through a less
advantageous investment, forgo the investment at the time
or seek to replicate the desired exposure through a derivative transaction or
investment in another investment vehicle. Any such
event(s) could have a significant adverse impact on the value and risk profile
of the Fund’s portfolio. There is a risk that you may lose
money by investing in the Fund.
Social,
political, economic and other conditions and events, such as war, natural
disasters, health emergencies (e.g., the novel coronavirus
outbreak, epidemics and other pandemics), terrorism, conflicts and social
unrest, could reduce consumer demand or economic
output, result in market closures, travel restrictions or quarantines, and
generally have a significant impact on the economies
and financial markets and the Adviser’s investment advisory activities and
services of other service providers, which in turn could
adversely affect the Fund’s investments and other operations.
Global
events may negatively impact broad segments of businesses and populations, cause
a significant negative impact on the performance
of the Fund’s investments, adversely affect and increase the volatility of the
Fund’s share price, exacerbate pre-existing political,
social and economic risks to the Fund. The Fund’s operations may be interrupted
as a result, which may contribute to the negative
impact on investment performance. In addition, governments, their regulatory
agencies, or self-regulatory organizations may take
actions that affect the instruments in which the Fund invests, or the issuers of
such instruments, in ways that could have a significant
negative impact on the Fund’s investment performance.
Certain
countries and regulatory bodies use negative interest rates as a monetary policy
tool to encourage economic growth during periods of
deflation. In a negative interest rate environment, debt instruments may trade
at negative yields, which means the purchaser
of the instrument may receive at maturity less than the total amount invested.
In addition, in a negative interest rate environment,
if a bank charges negative interest rates, instead of receiving interest on
deposits, a depositor must pay the bank fees to keep money
with the bank. To the extent the Fund holds a debt instrument or has a bank
deposit with a negative interest rate, the Fund would
generate a negative return on that investment.
Responsible
Investing
Investing
primarily in responsible investments carries the risk that, under certain market
conditions, the Fund may underperform funds that
do not utilize a responsible investment strategy. The application of responsible
investment criteria may affect the Fund’s exposure
to certain sectors or types of investments, and may impact the Fund’s relative
investment performance depending on whether
such sectors or investments are in or out of favor in the market. An
investment’s ESG performance, or Calvert’s and/or the Adviser’s
assessment of such performance may change over time, which could cause the Fund
to temporarily hold securities that do not comply
with the Fund’s responsible investment criteria. In evaluating an investment,
Calvert and
the
Adviser are dependent
upon information
and data that may be incomplete, inaccurate or unavailable, which could
adversely affect the analysis of the ESG factors relevant
to a particular investment. Successful application of the Fund’s responsible
investment strategy will depend on Calvert’s and/or the
Adviser’s skill in properly identifying and analyzing material ESG issues.
Regulatory changes or interpretations regarding the definitions
and/or use of ESG criteria could have a material adverse effect on the Fund’s
ability to invest in accordance with its ESG strategy.
Socially responsible norms differ by country and region, and a company’s ESG
practices or Calvert and/or the Adviser’s assessment
of such may change over time and there is a risk that the Adviser may
incorrectly assess a company’s ESG practices. The Fund may
invest in companies that do not reflect the beliefs and values of any particular
investor.
Foreign
Investing
To the
extent that the Fund invests in foreign issuers, there is the risk that news and
events unique to a country or region will affect those
markets and their issuers. These same events will not necessarily have an effect
on the U.S. economy or similar issuers located in the United
States. In addition, some of the Fund’s securities, including underlying
securities represented by depositary receipts, may be
denominated in foreign currencies. As a result, changes in the value of a
country’s currency compared to the U.S. dollar may affect the value
of the Fund’s investments. These changes may happen separately from, and in
response to, events that do not otherwise affect the
value of the security in the issuer’s home country.
Calvert | Additional
Information About the Fund’s Investment Strategies and Related
Risks
Additional
Information About the Fund’s Investment Strategies and Related Risks
(Con’t)
Foreign
Securities
Foreign
issuers generally are subject to different accounting, auditing and financial
reporting standards than U.S. issuers. There may be less
information available to the public about foreign issuers. Securities of foreign
issuers can be less liquid and experience greater price
movements. In addition, the prices of such securities may be susceptible to
influence by large traders, due to the limited size of many
foreign securities markets. Moreover, investments in certain foreign markets
that have historically been considered stable may become
more volatile and subject to increased risk due to ongoing developments and
changing conditions in such markets. Also, the growing
interconnectivity of global economies and financial markets has increased the
probability that adverse developments and conditions
in one country or region will affect the stability of economies and financial
markets in other countries or regions. In some foreign
countries, there is also the risk of government expropriation, excessive
taxation, political or social instability, the imposition of currency
controls or diplomatic developments that could affect the Fund’s investment.
There also can be difficulty obtaining and enforcing
judgments against issuers in foreign countries. Foreign stock exchanges,
broker-dealers and listed issuers may be subject to less
government regulation and oversight. The cost of investing in foreign
securities, including brokerage commissions and custodial expenses,
can be higher than the cost of investing in domestic securities.
Certain
foreign markets may rely heavily on particular industries or foreign capital and
are more vulnerable to diplomatic developments,
the imposition of economic sanctions against a particular country or countries,
organizations, companies, entities and/or
individuals, changes in international trading patterns, trade barriers and other
protectionist or retaliatory measures. International trade
barriers or economic sanctions against foreign countries, organizations,
companies, entities and/or individuals may adversely affect the
Fund’s foreign holdings or exposures. Investments in foreign markets may also be
adversely affected by less stringent investor
protections and disclosure standards, and governmental actions such as the
imposition of capital controls, nationalization of companies
or industries, expropriation of assets or the imposition of punitive taxes.
Governmental actions can have a significant effect on
the economic conditions in foreign countries, which also may adversely affect
the value and liquidity of the Fund’s investments.
Foreign investment in the securities markets of certain foreign countries is
restricted or controlled to varying degrees. For
example, the governments of certain countries may prohibit or impose substantial
restrictions on foreign investing in their capital markets or
in certain sectors or industries. In addition, a foreign government may limit or
cause delay in the convertibility or repatriation
of its currency which would adversely affect the U.S. dollar value and/or
liquidity of investments denominated in that currency.
Moreover, if a deterioration occurs in a country’s balance of payments, the
country could impose temporary restrictions on foreign
capital remittances. The Fund could also be adversely affected by delays in, or
a refusal to grant, any required governmental approval
for repatriation, as well as by the application to it of other restrictions on
investment. Any of these actions could severely affect
security prices, which could result in losses to the Fund and increased
transaction costs, impair the Fund’s ability to purchase or sell
foreign securities or transfer the Fund’s assets back into the United States, or
otherwise adversely affect the Fund’s operations. Certain
foreign investments may become less liquid in response to market developments or
adverse investor perceptions, or become illiquid
after purchase by the Fund, particularly during periods of market turmoil.
Certain foreign investments may become illiquid when, for
instance, there are few, if any, interested buyers and sellers or when dealers
are unwilling to make a market for certain securities.
When the Fund holds illiquid investments, its portfolio may be harder to
value.
Economic
sanctions or other similar measures may be, and have been, imposed against
certain countries, organizations, companies, entities
and/or individuals. The Fund’s investments in foreign securities are subject to
economic sanctions and trade laws in the United
States and other jurisdictions. These laws and related governmental actions,
including counter-sanctions and other retaliatory measures,
can, from time to time, prevent or prohibit the Fund from investing in certain
foreign securities. In addition, economic sanctions
could prohibit the Fund from transacting with particular countries,
organizations, companies, entities and/or individuals by banning
them from global payment systems that facilitate cross-border payments,
restricting their ability to settle securities transactions,
and freezing their assets. The imposition of sanctions and other similar
measures could, among other things, cause a decline in
the value of securities issued by the sanctioned country or companies located
in, or economically linked to, the sanctioned country,
downgrades in the credit ratings of the sanctioned country or companies located
in, or economically linked to, the sanctioned
country, devaluation of the sanctioned country’s currency, and increased market
volatility and disruption in the sanctioned
country and throughout the world. Economic sanctions or other similar measures
could, among other things, effectively restrict
or eliminate the Fund’s ability to purchase or sell securities, negatively
impact the value or liquidity of the Fund’s investments, significantly
delay or prevent the settlement of the Fund’s securities transactions, force the
Fund to sell or otherwise dispose of investments
at inopportune times or prices, increase the Fund’s transaction costs, make the
Fund’s investments more difficult to value or
impair the Fund’s ability to meet its investment objective or invest in
accordance with its investment strategies. These conditions
may be in place for a substantial period of time and enacted with limited
advance notice to the Fund.
Liquidity
The Fund
may make investments that are illiquid or restricted or that may become less
liquid in response to overall economic conditions
or adverse investor perceptions, and which may entail greater risk than
investments in other types of securities. These investments
may be more difficult to value or sell, particularly in times of market turmoil,
and there may be little trading in the secondary
market available for particular securities. If the Fund is forced to sell an
illiquid or restricted security to meet cash needs, it may be
forced to sell the security at a loss or for less than its fair
value.
Calvert | Additional
Information About the Fund’s Investment Strategies and Related
Risks
Additional
Information About the Fund’s Investment Strategies and Related Risks
(Con’t)
Foreign
Currency
Investments
in foreign securities may be denominated in foreign currencies. The value of
foreign currencies may fluctuate relative to the value
of the U.S. dollar or other applicable foreign currency. Since the Fund may
invest in such non-U.S. dollar-denominated securities,
and therefore may convert the value of such securities into U.S. dollars,
changes in currency exchange rates can increase or decrease
the U.S. dollar value of the Fund’s assets. Currency exchange rates may
fluctuate significantly over short periods of time for a number of
reasons, including changes in interest rates and the overall economic health of
the issuer. Devaluation of a currency by a country’s
government or banking authority also will have a significant impact on the value
of any investments denominated in that currency.
The Adviser may use derivatives to reduce this risk. The Adviser may in its
discretion choose not to hedge against currency risk. In
addition, certain market conditions may make it impossible or uneconomical to
hedge against currency risk.
Foreign
Currency Forward Exchange Contracts
In
connection with its investments in foreign securities, the Fund also may enter
into contracts with banks, brokers or dealers to purchase
or sell securities or foreign currencies at a future date. A foreign currency
forward exchange contract is a negotiated agreement
between the contracting parties to exchange a specified amount of currency at a
specified future time at a specified rate. The rate
can be higher or lower than the spot rate between the currencies that are the
subject of the contract. Foreign currency forward
exchange contracts may be used to protect against uncertainty in the level of
future foreign currency exchange rates or to gain or modify
exposure to a particular currency. In addition, the Fund may use cross currency
hedging or proxy hedging with respect to currencies
in which the Fund has or expects to have portfolio or currency exposure. Cross
currency and proxy hedges involve the sale of one
currency against the positive exposure to a different currency and may be used
for hedging purposes or to establish an active exposure
to the exchange rate between any two currencies.
Investments
in foreign currency forward exchange contracts may substantially change the
Fund’s exposure to currency exchange rates and could
result in losses to the Fund if currencies do not perform as the Adviser
expects. The Adviser’s success in these transactions will
depend principally on its ability to predict accurately the future exchange
rates between foreign currencies and the U.S. dollar. Foreign
currency forward exchange contracts may be used for non-hedging purposes in
seeking to meet the Fund’s investment objectives,
such as when the Adviser anticipates that particular non-U.S. currencies will
appreciate or depreciate in value, even though securities
denominated in those currencies are not then held in the Fund’s investment
portfolios. Investing in foreign currency forward
exchange contracts for purposes of gaining from projected changes in exchange
rates, as opposed to hedging currency risks applicable
to the Fund’s holdings, further increases the Fund’s exposure to foreign
securities losses. There is no assurance that the Adviser’s
use of currency derivatives will benefit the Fund or that they will be, or can
be, used at appropriate times.
Derivatives
The Fund
may, but is not required to, use derivative instruments for a variety of
purposes, including hedging, risk management, portfolio
management or to earn income. Derivative instruments used by the Fund will be
counted towards the Fund’s exposure in the types
of securities listed herein to the extent they have economic characteristics
similar to such securities. A derivative is a financial
instrument whose value is based, in part, on the value of an underlying asset,
interest rate, index or financial instrument. Prevailing
interest rates and volatility levels, among other things, also affect the value
of derivative instruments. A derivative instrument
often has risks similar to its underlying asset and may have additional risks,
including imperfect correlation between the value of
the derivative and the underlying asset, risks of default by the counterparty to
certain transactions, magnification of losses incurred
due to changes in the market value of the securities, instruments, indices or
interest rates to which the derivative instrument relates,
risks that the transactions may not be liquid and risks arising from margin
requirements. The use of derivatives involves risks that are
different from, and possibly greater than, the risks associated with other
portfolio investments. Derivatives may involve the use of
highly specialized instruments that require investment techniques and risk
analyses different from those associated with other portfolio
investments.
Certain
derivative transactions may give rise to a form of leverage. Leverage magnifies
the potential for gain and the risk of loss. Leverage
associated with derivative transactions may cause the Fund to liquidate
portfolio positions when it may not be advantageous to do so
to satisfy its obligations or to meet earmarking or segregation requirements,
pursuant to applicable SEC rules and regulations,
or may cause the Fund to be more volatile than if the Fund had not been
leveraged. Although the Adviser seeks to use derivatives
to further the Fund’s investment objective, there is no assurance that the use
of derivatives will achieve this result.
The
derivative instruments and techniques that the Fund may use include futures. A
futures contract is a standardized, exchange-traded
agreement to buy or sell a specific quantity of an underlying asset, reference
rate or index at a specific price at a specific future time.
While the value of a futures contract tends to increase or decrease in tandem
with the value of the underlying instrument, differences
between the futures market and the market for the underlying asset may result in
an imperfect correlation. Depending on the terms
of the particular contract, futures contracts are settled through either
physical delivery of the underlying instrument on the settlement
date or by payment of a cash settlement amount on the settlement date. A
decision as to whether, when and how to use futures
contracts involves the exercise of skill and judgment and even a well-conceived
futures transaction may be unsuccessful because of
market behavior or unexpected events. In addition to the derivatives risks
discussed above, the prices of futures contracts can be
highly volatile, using futures contracts can lower total return, and the
potential loss from futures contracts can exceed the Fund’s
initial investment in such contracts. No assurance can be given that a liquid
market will exist for any particular futures
Calvert | Additional
Information About the Fund’s Investment Strategies and Related
Risks
Additional
Information About the Fund’s Investment Strategies and Related Risks
(Con’t)
contract
at any particular time. There is also the risk of loss by the Fund of margin
deposits in the event of bankruptcy of a broker with which
the Fund has open positions in the futures contract.
Exchange-Traded
Funds
The Fund
may invest in exchange-traded funds (“ETFs”). ETFs seek to track the performance
of various portions or segments of the equity and
fixed-income markets. Shares of ETFs have many of the same risks as direct
investments in common stocks or bonds. In addition,
the market value of ETF shares may differ from their NAV because the supply and
demand in the market for ETF shares at any point
in time is not always identical to the supply and demand in the market for the
underlying securities. Also, ETFs that track particular
indices typically will be unable to match the performance of the index exactly
due to, among other things, the ETF’s operating
expenses and transaction costs. ETFs typically incur fees that are separate from
those fees incurred directly by the Fund. Therefore,
as a shareholder in an ETF, the Fund would bear its ratable share of that
entity’s expenses. At the same time, the Fund would
continue to pay its own investment management fees and other expenses. As a
result, shareholders will directly bear the expenses
of their investment in the Fund and indirectly bear the expenses of the Fund’s
investments in ETFs with respect to investments
in ETFs.
Large
Shareholder Transactions Risk
The Fund
may experience adverse effects when certain shareholders purchase or redeem
large amounts of shares of the Fund. In addition,
a third party investor, the Adviser or an affiliate of the Adviser, an
authorized participant, a lead market maker, or another entity
(i.e., a seed investor) may invest in the Fund and hold its investment solely to
facilitate commencement of the Fund or to facilitate
the Fund’s achieving a specified size or scale. Any such investment may be held
for a limited period of time. There can be no assurance
that any large shareholder would not redeem its investment, that the size of the
Fund would be maintained at such levels or that the
Fund would continue to meet applicable listing 3 requirements. Such larger than
normal redemptions may cause the Fund to sell
portfolio securities at times when it would not otherwise do so, which may
negatively impact the Fund’s NAV and liquidity. Similarly,
large Fund share purchases may adversely affect the Fund’s performance to the
extent that the Fund is delayed in investing new cash
and is required to maintain a larger cash position than it ordinarily would.
These transactions may also accelerate the realization
of taxable income to shareholders if such sales of investments resulted in gains
and may also increase transaction costs. In addition,
a large redemption could result in the Fund’s current expenses being allocated
over a smaller asset base, leading to an increase
in the Fund’s expense ratio. Although large shareholder transactions may be more
frequent under certain circumstances, the Fund is
generally subject to the risk that shareholders can purchase or redeem a
significant percentage of Fund shares at any time. In addition,
transactions by large shareholders may account for a large percentage of the
trading volume on NYSE
Arca and may,
therefore,
have a material upward or downward effect on the market price of the
shares.
Counterparty
Risk
A
financial institution or other counterparty with whom the Fund does business
(such as trading, securities lending or as a derivatives counterparty),
or that underwrites, distributes or guarantees any instruments that the Fund
owns or is otherwise exposed to, may decline in
financial condition and become unable to honor its commitments. This could cause
the value of Fund shares to decline or could
delay the return or delivery of collateral or other assets to the Fund.
Counterparty risk is increased for contracts with longer maturities.
Securities
Lending
The Fund
may lend its portfolio securities to broker-dealers and other institutional
borrowers. During the existence of a loan, the Fund will
continue to receive the equivalent of the interest paid by the issuer on the
securities loaned, or all or a portion of the interest
on investment of the collateral, if any. The Fund may pay lending fees to such
borrowers. Loans will only be made to firms that have
been approved by the Adviser, and the Adviser or the securities lending agent
will periodically monitor the financial condition
of such firms while such loans are outstanding. Securities loans will only be
made when the Adviser believes that the expected
returns, net of expenses, justify the attendant risks. Securities loans
currently are required to be secured continuously by collateral
in cash, cash equivalents (such as money market instruments) or other liquid
securities held by the custodian and maintained
in an amount at least equal to the market value of the securities loaned. The
Fund may engage in securities lending to generate
income. Upon return of the loaned securities, the Fund would be required to
return the related collateral to the borrower and may be
required to liquidate portfolio securities in order to do so. The Fund may lend
up to one-third of the value of its total assets or
such other amount as may be permitted by law.
As with
other extensions of credit, there are risks of delay in recovery or even loss of
rights in the securities loaned if the borrower of the
securities fails financially. To the extent that the portfolio securities
acquired with such collateral have decreased in value, it may result in
the Fund realizing a loss at a time when it would not otherwise do so. As such,
securities lending may introduce leverage into the Fund.
The Fund also may incur losses if the returns on securities that it acquires
with cash collateral are less than the applicable rebate
rates paid to borrowers and related administrative costs.
Trading
Risk
Shares are
listed for trading on NYSE
Arca and are
bought and sold in the secondary market at market prices. The market prices of
shares are
expected to fluctuate, in some cases materially, in response to changes in the
Fund’s NAV, the intra-day value of the Fund’s
Calvert | Additional
Information About the Fund’s Investment Strategies and Related
Risks
Additional
Information About the Fund’s Investment Strategies and Related Risks
(Con’t)
holdings,
and supply and demand for shares. The
Adviser cannot predict whether shares will
trade above, below or at their NAV. Disruptions
to creations and redemptions, the existence of significant market volatility or
potential lack of an active trading market for the
shares
(including through a trading halt), as well as other factors, may result in the
shares trading
significantly above (at a premium)
or below (at a discount) to NAV or to the intraday value of the Fund’s holdings.
During such periods, you may incur significant
losses if you sell your shares.
Buying or
selling shares in the
secondary market may require paying brokerage commissions or other charges
imposed by brokers as determined
by that broker. Brokerage commissions are often a fixed amount and may be a
significant proportional cost when seeking to buy or
sell relatively small amounts of shares. In addition, the market price of
shares, like the
price of any exchange-traded security, includes a
“bid-ask spread” charged by the market makers or other participants that trade
the particular security. The spread of a Fund’s
shares varies
over time based on the Fund’s trading volume and market liquidity and may
increase if the Fund’s trading volume,
the spread of the Fund’s underlying securities, or market liquidity
decrease.
Trading in
shares on
NYSE Arca may be
halted due to market conditions or for reasons that, in the view of NYSE
Arca, make
trading in
shares
inadvisable. In addition, trading in shares on
NYSE Arca is
subject to trading halts caused by extraordinary market volatility
pursuant to NYSE
Arca “circuit
breaker” rules. If a trading halt or unanticipated closing of the exchange
occurs, a shareholder
may be unable to purchase or sell shares. There
can be no assurance that the requirements of NYSE
Arca necessary
to maintain
the listing of the Fund will continue to be met or will remain
unchanged.
Authorized
Participant Concentration Risk
Only an
authorized participant may engage in creation or redemption transactions
directly with the Fund. The Fund has a limited number of
intermediaries that act as authorized participants and none of these authorized
participants is or will be obligated to engage in
creation or redemption transactions. To the extent that these intermediaries
exit the business or are unable to or choose not to proceed
with creation and/or redemption orders with respect to the Fund and no other
authorized participant creates or redeems, shares may trade
at a discount to NAV and possibly face trading halts and/or
delisting.
Cybersecurity
Risk
With the
increased use of technologies such as the internet to conduct business, the
Fund, authorized participants, service providers and the
relevant listing exchange are susceptible to operational, information security
and related “cyber” risks both directly and through
the service providers. Similar types of cybersecurity risks are also present for
issuers of securities in which the Fund invests, which
could result in material adverse consequences for such issuers and may cause the
Fund’s investment in such issuers to lose value. In
general, cyber incidents can result from deliberate attacks or unintentional
events. Cyber incidents include, but are not limited
to, gaining unauthorized access to digital systems (e.g., through “hacking” or
malicious software coding) for purposes of misappropriating
assets or sensitive information, corrupting data, or causing operational
disruption. Cyberattacks may also be carried out in a
manner that does not require gaining unauthorized access, such as causing
denial-of-service attacks on websites (i.e., efforts to make
network services unavailable to intended users). Recently, geopolitical tensions
may have increased the scale and sophistication
of deliberate attacks, particularly those from nation-states or from entities
with nation-state backing.
Cybersecurity
failures by, or breaches of, the systems of the Fund’s adviser, distributor and
other service providers (including, but not limited
to, index and benchmark providers, fund accountants, custodians, transfer agents
and administrators), market makers, authorized
participants or the issuers of securities in which the Fund invests have the
ability to cause disruptions and impact business operations,
potentially resulting in: financial losses, interference with the Fund’s ability
to calculate its NAV, disclosure of confidential
trading information, impediments to trading, submission of erroneous trades or
erroneous creation or redemption orders,
the inability of the Fund or its service providers to transact business,
violations of applicable privacy and other laws, regulatory fines,
penalties, reputational damage, reimbursement or other compensation costs, or
additional compliance costs. In addition, cyberattacks
may render records of Fund assets and transactions, shareholder ownership of
Fund shares, and other data integral to the functioning
of the Fund inaccessible, inaccurate or incomplete. Substantial costs may be
incurred by the Fund in order to resolve or prevent
cyber incidents in the future. While the Fund has established business
continuity plans in the event of, and risk management systems to
prevent, such cyber incidents, there are inherent limitations in such plans and
systems, including the possibility that certain
risks have not been identified, that prevention and remediation efforts will not
be successful or that cyberattacks will go undetected.
Furthermore, the Fund cannot control the cybersecurity plans and systems put in
place by service providers to the Fund, issuers in
which the Fund invests, market makers or authorized participants. The Fund and
its shareholders could be negatively impacted
as a result.
Active
Management Risk
In
pursuing the Fund’s investment objective, the Adviser has considerable leeway in
deciding which investments to buy, hold or sell on a
day-to-day basis, and which trading strategies to use. For example, the Adviser,
in its discretion, may determine to use some permitted
trading strategies while not using others. The success or failure of such
decisions will affect the Fund’s performance.
Calvert | Additional
Information About the Fund’s Investment Strategies and Related
Risks
Additional
Information About the Fund’s Investment Strategies and Related Risks
(Con’t)
Temporary
Investments
Under
adverse or unstable market conditions or abnormal circumstances or when the
Adviser believes that changes in market, economic,
political or other conditions warrant, the Fund may, in the discretion of the
Adviser, take temporary positions that are inconsistent
with the Fund’s principal investment strategies in attempting to respond to such
conditions or circumstances. For example,
the Fund may invest without limit in cash, cash equivalents or other
fixed-income instruments, derivatives, repurchase agreements
or securities of other investment companies, including money market funds, for
temporary purposes. If the Adviser incorrectly
predicts the effects of these changes, such temporary investments may adversely
affect the Fund’s performance and the Fund may
not achieve its investment objective.
New
Fund Risk
A new
fund’s performance may not represent how the fund is expected to or may perform
in the long term. In addition, new funds have
limited operating histories for investors to evaluate and new funds may not
attract sufficient assets to achieve investment and trading
efficiencies.
Calvert | About
Responsible Investing
About
Responsible Investing
Investment
Selection Process
Calvert
seeks to identify issuers that manage ESG risk exposures adequately and that are
not exposed to excessive ESG risk through their
principal business activities. Issuers are analyzed using The Calvert Principles
for Responsible Investment (included as Appendix A to this
Prospectus), a framework for considering ESG factors. Each issuer is evaluated
relative to an appropriate peer group based on
financially material ESG factors as determined by Calvert. Calvert’s evaluation
of a particular security’s responsible investing characteristics
generally involves both quantitative and qualitative analysis. In assessing
investments, Calvert generally focuses on the ESG
factors relevant to the issuer’s operations, and an issuer may be acceptable for
investment based primarily on such assessment. Securities
may be deemed suitable for investment even if the issuer does not operate in
accordance with all elements of the Fund’s responsible
investing criteria. The Fund may also invest in issuers that Calvert believes
are likely to operate in accordance with the Principles
pending Calvert’s engagement activity with such issuer. In assessing issuers for
which quantitative data is limited, subjective
judgments may serve as the primary basis for Calvert’s evaluation. The
responsible investing criteria of the Fund may be changed by
the Board without shareholder approval.
As
described above, and in the
SAI, the Fund may invest in cash, money market instruments and ETFs. Such
investments will generally
not be subject to responsible investment analysis and will not be required to be
consistent with the responsible investment criteria
otherwise applicable to investments made by the Fund. In addition, ETFs in which
the Fund may invest may hold securities of issuers
that do not operate in accordance with the Fund’s responsible investment
criteria.
Shareholder
Advocacy and Corporate Responsibility
The
Adviser has engaged Calvert to vote proxies consistent with Calvert’s Proxy
Voting Policies and Procedures and Global Proxy Voting
Guidelines (the
“Proxy
Voting Policies”). The Adviser has also engaged Calvert to seek to actively
engage with issuers. Calvert
uses
strategic engagement and shareholder advocacy to encourage positive change in
companies. Calvert’s activities may include, but are not
limited to:
Direct
Dialogue with Company Management. Calvert,
or its agent, may initiate dialogue with management through phone calls,
letters
and in-person meetings. Through its interaction, Calvert seeks to learn about
management’s successes and challenges and to press for
improvement on issues of concern.
Proxy
Voting. As a
shareholder of the companies in its portfolio, the Fund
typically has an opportunity each year to express its views on issues
of corporate governance and sustainability at annual stockholder meetings.
Calvert votes proxies consistent with the Proxy
Voting Policies
attached to the SAI.
Shareholder
Resolutions. Calvert
may propose that companies submit resolutions to their shareholders on a variety
of ESG issues. Calvert
believes that submitting shareholder resolutions may help establish dialogue
with management and encourage companies to take
action.
Calvert | Fund
Management
Adviser
Morgan
Stanley Investment Management Inc., with principal offices at 522 Fifth Avenue,
New York, NY 10036, conducts a worldwide
portfolio management business and provides a broad range of portfolio management
services to customers in the United States and
abroad. Morgan Stanley (NYSE: “MS”) is the parent of the Adviser. Morgan Stanley
is a preeminent global financial services
firm engaged in securities trading and brokerage activities, as well as
providing investment banking, research and analysis, financing
and financial advisory services. As of September
30, 2022,
the Adviser, together with its affiliated asset management companies,
had approximately $1.3
trillion in assets
under management or supervision.
A
discussion regarding the Board of Trustees’ approval of the Management Agreement
will be available in the Fund’s semi-annual
report to
shareholders for the period ending March 31,
2023.
Management
Fees
The
Adviser receives a fee for management services equal to 0.29% of the Fund’s
average daily net assets.
Under the
Management Agreement, the Adviser will
pay
substantially all the expenses of the Fund (including expenses of the Trust
relating
to the Fund), except for the distribution
fees, if any, brokerage expenses, acquired
fund fees and expenses, taxes,
interest, litigation
expenses, and other extraordinary expenses, including the costs of
proxies, not
incurred in the ordinary course of the Fund’s
business.
Portfolio
Management
The Fund
is managed by Jade
Huang, Christopher Madden, James Reber, Thomas C. Seto, and Matthew
Maillet, who are
jointly and
primarily responsible for the day-to-day management of the Funds. Ms.
Huang and Messrs. Madden, Seto and Reber are Managing
Directors of the Adviser and have been associated with the Morgan Stanley
organization for more than five years. Mr. Maillet
has been an Executive Director of the Adviser since 2022 and was associated with
Goldman Sachs Asset Management, L.P. from 2014
until he joined Morgan Stanley.
The Fund’s
SAI provides additional information about the portfolio managers’ compensation
structure, other accounts managed by the
portfolio managers and the portfolio managers’ ownership of securities in the
Fund.
Calvert | Shareholder
Information
Distribution
of Fund Shares
The
Distributor is the exclusive distributor of Creation Units of the Fund. The
Distributor or its agent distributes Creation Units for the Fund
on an agency basis. The Distributor does not maintain a secondary market in
shares of the Fund. The Distributor has no role in
determining the investment policies of the Fund or the securities that are
purchased or sold by the Fund. The Distributor’s principal
address is 3 Canal Plaza Suite 100, Portland, ME 04101.
The Board
of Trustees of the Trust has adopted a distribution and service plan (“Plan”)
pursuant to Rule 12b-1 under the 1940 Act. Under the
Plan, the Fund is authorized to pay distribution fees in connection with the
sale and distribution of its shares and pay service
fees in connection with the provision of ongoing services to shareholders of the
Fund and the maintenance of shareholder accounts
in an amount up to 0.25% of its average daily net assets each year.
No Rule
12b-1 fees are currently paid by the Fund, and there are no current plans to
impose these fees. However, in the event Rule 12b-1 fees
are charged in the future, because these fees are paid out of the Fund’s assets
on an ongoing basis, these fees will increase the cost
of your investment in the Fund. By purchasing shares subject to distribution
fees and service fees, you may pay more over time than
you would by purchasing shares with other types of sales charge arrangements.
Long-term shareholders may pay more than the
economic equivalent of the maximum front-end sales charge permitted by the rules
of FINRA. The net income attributable to shares
will be reduced by the amount of distribution fees and service fees and other
expenses of the Fund.
About
Net Asset Value
The Fund’s
NAV per share is determined
by dividing the total of the value of the Fund’s investments and other assets,
less any liabilities
attributable to the Fund, by the
total number of outstanding shares of the
Fund. In making this calculation, the Fund generally
values its portfolio securities and other assets at market price.
When no
market quotations are readily available for a security or other asset, including
circumstances under which the Adviser determines
that a market quotation is not accurate, fair value for the security or other
asset will be determined in good faith using methods
approved by the Board of
Trustees. The
Adviser, consistent with its procedures and applicable regulatory guidance, may
(but need
not) determine to make an adjustment to the previous closing prices of either
domestic or foreign securities in light of significant
events, to reflect what it believes to be the fair value of
the securities
at the time of determining the Fund’s NAV. In these
cases, the
Fund’s NAV will reflect certain portfolio securities’ fair value rather than
their market price. To the extent the Fund invests in
open-end management companies (other than ETFs) that are registered under the
1940 Act, the Fund’s NAV is calculated based in
relevant part upon the NAV of such funds. The prospectuses for such funds
explain the circumstances under which they will use fair value
pricing and its effects.
Fair value
pricing involves subjective judgments and it is possible that the fair value
determined for a security or other asset is materially
different than the value that could be realized upon the sale of that security
or other asset. With respect to securities that are
primarily listed on foreign exchanges, the values of the Fund’s portfolio
securities may change on days when you will not be able to
purchase or sell your shares. The NAV
of the Fund is based
on the value of the Fund’s portfolio securities or other assets.
The Fund
relies on various sources to calculate its NAV. The ability of the Fund’s
provider of administrative services to calculate the NAV per
share of the Fund is subject to operational risks associated with processing or
human errors, systems or technology failures, cyber
attacks and errors caused by third party service providers, data sources, or
trading counterparties. Such failures may result in delays in
the calculation of the Fund’s NAV and/or the inability to calculate NAV over
extended time periods. The Fund may be unable to
recover any losses associated with such failures. In addition, if the third
party service providers and/or data sources upon which the
Fund directly or indirectly relies to calculate its NAV or price individual
securities are unavailable or otherwise unable to calculate
the NAV correctly, it may be necessary for alternative procedures to be utilized
to price the securities at the time of determining
the Fund’s NAV.
The Fund’s
NAV per share is subject to various investment and other risks. Please refer to
the “Additional Information About the Fund’s
Investment Strategies and Related Risks” and “Investment
Strategies and Techniques“ sections
of the Prospectus and SAI, respectively,
for more information regarding risks associated with an investment in the
Fund.
Book
Entry
The
Depository Trust Company (“DTC”) serves as securities depository for the
shares. (The
shares may be
held only in book-entry form;
stock certificates will not be issued.) DTC, or its nominee, is the record or
registered owner of all outstanding shares.
Beneficial ownership
of shares will be
shown on the records of DTC or its participants (described below). Beneficial
owners of shares are not
entitled
to have shares
registered in their names, will not receive or be entitled to receive physical
delivery of certificates in definitive form and
are not considered the registered holder thereof. Accordingly, to exercise any
rights of a holder of shares, each
beneficial owner must
rely on the procedures of: (i) DTC; (ii) “DTC Participants,” i.e., securities
brokers and dealers, banks, trust companies, clearing
corporations and certain other organizations, some of whom (and/or their
representatives) own DTC; and (iii) “Indirect Participants,”
i.e., brokers, dealers, banks and trust companies that clear through or maintain
a custodial relationship with a DTC Participant,
either directly or indirectly, through which such beneficial owner holds its
interests. The Trust understands that under
Calvert | Shareholder
Information
Shareholder
Information (Con’t)
existing
industry practice, in the event the Trust requests any action of holders of
shares, or a
beneficial owner desires to take any action
that DTC, as the record owner of all outstanding shares, is
entitled to take, DTC would authorize the DTC Participants to take such
action and that the DTC Participants would authorize the Indirect Participants
and beneficial owners acting through such DTC
Participants to take such action and would otherwise act upon the instructions
of beneficial owners owning through them. As described
above, the Trust recognizes DTC or its nominee as the owner of all shares for all
purposes.
Buying
and Selling Shares
Shares of
the Fund may be acquired or redeemed directly from the Fund at NAV only in
Creation Units or multiples thereof, as discussed
in the “Creations and Redemptions” section of the Prospectus. Only an Authorized
Participant (as defined in the “Creations
and Redemptions” section below) may engage in creation or redemption
transactions directly with the Fund. Once created,
shares of the
Fund generally trade in the secondary market in amounts less than a Creation
Unit.
Shares of
the Fund are listed for trading on a national securities exchange during the
trading day. Shares can be bought and sold throughout
the trading day at market price like shares of other publicly traded companies.
However, there can be no guarantee that an active
trading market will develop or be maintained, or that the Fund shares listing
will continue or remain unchanged. The Trust does not
impose any minimum investment for shares of the
Fund purchased on an exchange. Buying or selling the Fund’s shares
involves
certain costs that apply to all securities transactions. When buying or selling
shares of the
Fund through a financial intermediary,
you may incur a brokerage commission or other charges determined by your
financial intermediary. Due to these brokerage
costs, if any, frequent trading may detract significantly from investment
returns. In addition, you may also incur the cost of the spread
(the difference between the bid price and the ask price). The commission is
frequently a fixed amount and may be a significant
cost for investors seeking to buy or sell small amounts of shares. The
spread varies over time for shares of the
Fund based on its
trading volume and market liquidity, and is generally less if the Fund has more
trading volume and market liquidity and more if the
Fund has less trading volume and market liquidity.
The Fund’s
primary listing exchange is NYSE Arca.
NYSE Arca is open
for trading Monday through Friday and is closed on
the following
holidays: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good
Friday, Memorial Day, Juneteenth National
Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas
Day.
A
“business day” with respect to the Fund is each day the New York Stock Exchange,
NYSE
Arca, and the
Trust are open and includes
any day that the Fund is required to be open under Section 22(e) of the 1940
Act. Orders from authorized participants to create or
redeem Creation Units will only be accepted on a business day. On days when
NYSE
Arca closes
earlier than normal, the Fund may
require orders to create or redeem Creation Units to be placed earlier in the
day. See the SAI for more information.
The
Trust’s Board of Trustees has not adopted a policy of monitoring for frequent
purchases and redemptions of Fund shares
(“frequent
trading”) that appear to attempt to take advantage of potential arbitrage
opportunities presented by a lag between a change in the
value of the Fund’s portfolio securities after the close of the primary markets
for the Fund’s portfolio securities and the reflection
of that change in the Fund’s NAV (“market timing”). The Trust believes this is
appropriate because ETFs, such as the Fund, are
intended to be attractive to arbitrageurs, as trading activity is critical to
ensuring that the market price of Fund shares
remains at
or close to NAV. Since the Fund issues and redeems Creation Units at NAV plus
applicable transaction fees, and the Fund’s
shares may be
purchased and sold on NYSE
Arca at
prevailing market prices, the risks of frequent trading are
limited.
Section
12(d)(1) of the 1940 Act generally restricts investments by investment
companies, including foreign and unregistered investment
companies, in the securities of other investment companies. For example, a
registered investment company (the “Acquired
Fund”), such as the Fund, may not knowingly sell or otherwise dispose of any
security issued by the Acquired Fund to any investment
company (the “Acquiring Fund”) or any company or companies controlled by the
Acquiring Fund if, immediately after such sale
or disposition: (i) more than 3% of the total outstanding voting stock of the
Acquired Fund is owned by the Acquiring Fund and
any company or companies controlled by the Acquiring Fund, or (ii) more than 10%
of the total outstanding voting stock of the
Acquired Fund is owned by the Acquiring Fund and other investment companies and
companies controlled by them. However,
registered investment companies are permitted to invest in the Fund beyond the
limits set forth in Section 12(d)(1), subject to
certain terms and conditions set forth in SEC rules. In order for a registered
investment company to invest in shares of the Fund
beyond the limitations of Section 12(d)(1) in reliance on Rule 12d1-4 under the
1940 Act, the registered investment company must,
among other things, enter into an agreement with the Trust. Foreign investment
companies are permitted to invest in the Fund only
up to the limits set forth in Section 12(d)(1), subject to any applicable SEC
Staff no-action relief.
The Fund
and the Distributor will have the sole right to accept orders to purchase shares
and reserve the right to reject any purchase order in
whole or in part.
Creations
and Redemptions
Prior to
trading in the secondary market, shares of the
Fund are “created” at NAV by market makers, large investors and institutions
only in
block-size Creation Units or multiples thereof. Each “creator” or authorized
participant (an “Authorized Participant”) enters into an
authorized participant agreement with the Fund’s Distributor. An Authorized
Participant is a member or participant of a
Calvert | Shareholder
Information
Shareholder
Information (Con’t)
clearing
agency registered with the SEC, which has a written agreement with the Fund or
one of its service providers that allows such member or
participant to place orders for the purchase and redemption of Creation
Units.
A creation
transaction, which is subject to acceptance by JPMorgan
Chase Bank N.A., as the
Trust’s transfer agent, generally takes place when
an Authorized Participant deposits into the Fund a designated portfolio of
securities (including any portion of such securities
for which cash may be substituted) and a specified amount of cash in exchange
for a specified number of Creation Units.
Similarly,
shares can be
redeemed only in Creation Units, generally for a designated portfolio of
securities (including any portion of such
securities for which cash may be substituted) held by the Fund and a specified
amount of cash. Except when aggregated in Creation
Units, shares are not
redeemable by the Fund.
The prices
at which creations and redemptions occur are based on the next calculation of
NAV after a creation or redemption order is received
in an acceptable form under the authorized participant agreement.
Only an
Authorized Participant may create or redeem Creation Units directly with the
Fund.
In the
event of a system failure or other interruption, including disruptions at market
makers or authorized participants, orders to purchase
or redeem Creation Units either may not be executed according to the Fund’s
instructions or may not be executed at all, or the Fund
may not be able to place or change orders.
To the
extent the Fund engages in in-kind transactions, the Fund intends to comply with
the U.S. federal securities laws in accepting securities
for deposit and satisfying redemptions with redemption securities by, among
other means, assuring that any securities accepted
for deposit and any securities used to satisfy redemption requests will be sold
in transactions that would be exempt from registration
under the Securities Act of 1933, as amended (the “Securities Act”). Further, an
Authorized Participant that is not a “qualified
institutional buyer,” as such term is defined under Rule 144A of the Securities
Act, will not be able to receive restricted securities
eligible for resale under Rule 144A.
Creations
and redemptions must be made through a firm that is either a member of the
Continuous Net Settlement System of the National
Securities Clearing Corporation or a DTC Participant and has executed an
agreement with the Distributor with respect to creations
and redemptions of Creation Unit aggregations. Information about the procedures
regarding creation and redemption of Creation
Units (including the cut-off times for receipt of creation and redemption
orders) and the applicable transaction fees is included
in the Fund’s SAI.
Portfolio
Holdings
A
description of the Trust’s policies and procedures with respect to the
disclosure of the Fund’s portfolio securities is available in the Trust’s
SAI.
Dividends
and Distributions
General
Policies
Dividends
from net investment income, if any, generally are declared and paid quarterly by the
Fund. Distributions of net realized securities
gains, if any, generally are declared and paid once a year, but the Trust may
make distributions on a more frequent basis for the Fund.
The Trust reserves the right to declare special distributions if, in its
reasonable discretion, such action is necessary or advisable
to preserve its status as a regulated investment company or to avoid imposition
of income or excise taxes on undistributed income or
realized gains. Dividends and other distributions on shares of the Fund are
distributed on a pro rata basis to beneficial owners of
such shares. Dividend payments are made through DTC participants and indirect
participants to beneficial owners then of record
with proceeds received from the Fund.
Dividend
Reinvestment Service
No
dividend reinvestment service is provided by the Trust. Broker-dealers may make
available the DTC book-entry Dividend Reinvestment
Service for use by beneficial owners of the Fund for reinvestment of their
dividend distributions. Beneficial owners should
contact their broker to determine the availability and costs of the service and
the details of participation therein. Brokers may require
beneficial owners to adhere to specific procedures and timetables. If this
service is available and used, dividend distributions of both
income and realized gains will be automatically reinvested in additional whole
shares of the Fund purchased in the secondary market.
Taxes
As with
any investment, you should consider how your Fund investment will be taxed. The
tax information in this Prospectus is provided
as general information. You should consult your own tax professional about the
tax consequences of an investment in the Fund.
Unless your investment in the Fund is through a tax deferred retirement account,
such as a 401(k) plan or IRA, you need to be
Calvert | Shareholder
Information
Shareholder
Information (Con’t)
aware of
the possible tax consequences when the Fund makes distributions and when you
sell shares, including an exchange to another
Morgan Stanley Fund.
Taxation
of Distributions. Your
distributions normally are subject to federal and state income tax when they are
paid, whether you take them
in cash or reinvest them in Fund shares. A distribution also may be subject to
local income tax. Any income dividend distributions
and any short-term capital gain distributions are taxable to you as ordinary
income. Any long-term capital gain distributions
are taxable as long-term capital gains, no matter how long you have owned shares
in the Fund.
If certain
holding period requirements are met with respect to your shares, a portion of
the income dividends you receive may be taxed at
the same rates as long-term capital gains. However, even if income received in
the form of income dividends is taxed at the same rates
as long-term capital gains, such income will not be considered long-term capital
gains for other federal income tax purposes.
For example, you will not be permitted to offset income dividends with capital
losses. Short term capital gain distributions will
continue to be taxed as ordinary income taxes.
If certain
holding period requirements are met, corporate shareholders may be entitled to a
dividends-received deduction for the portion of
dividends they receive which are attributable to dividends received by such
portfolios from U.S. corporations.
If you buy
shares of the Fund before a distribution, you may be subject to tax on the
entire amount of the taxable distribution you receive.
Distributions are taxable to you even if they are paid from income or gain
earned by the Fund before your investment (and thus were
included in the price you paid for your Fund shares).
Investment
income received by the Fund from sources within foreign countries may be subject
to foreign income, withholding, and other
taxes. Tax conventions between certain countries and the U.S. may reduce or
eliminate such taxes.
You will
be sent a statement (Internal Revenue Service (“IRS”) Form 1099-DIV) by February
of each year showing the taxable distributions
paid to you in the previous year. The statement provides information on your
dividends and any capital gains for tax purposes.
Taxation
of Sales. Your sale
of Fund shares normally is subject to federal and state income tax and may
result in a taxable gain or loss to you. A
sale also may be subject to local income tax. Your exchange of Fund shares for
shares of another Morgan Stanley Fund is treated
for tax purposes like a sale of your original shares and a purchase of your new
shares. Thus, the exchange may, like a sale, result in
a taxable gain or loss to you and will give you a new tax basis for your shares.
When you sell your shares, you will
generally recognize
a capital gain or loss in an amount equal to the difference between your
adjusted tax basis in the shares and the
amount received.
Generally, this capital gain or loss is long-term or short-term depending on
whether your holding period exceeds one year, except
that any loss realized on shares held for
six months or less will be treated as a long-term capital loss to the extent of
any long-term
capital gain dividends that were received on the shares.
Additionally, any loss realized on a sale, exchange or redemption of
Shares of
the Fund may be disallowed under “wash sale” rules to the extent the
shares disposed
of are replaced with other shares of the Fund
within a period of 61 days beginning 30 days before and ending 30 days after the
date of disposition, such as pursuant to a dividend
reinvestment in Fund shares. If disallowed, the loss will be reflected in an
adjustment to the basis of the shares
acquired.
Creations
and Redemptions. A person
who exchanges securities for Creation Units generally will recognize a gain or
loss. The gain or loss will
be equal to the difference between the market value of the Creation Units at the
time of exchange and the sum of the exchanger’s
aggregate basis in the securities surrendered and the amount of any cash paid
for such Creation Units. A person who exchanges
Creation Units for securities will generally recognize a gain or loss equal to
the difference between the exchanger’s basis in the
Creation Units and the sum of the aggregate market value of the securities
received. The IRS, however, may assert that a loss realized
upon an exchange of primarily securities for Creation Units cannot be deducted
currently under the rules governing “wash sales,” or
on the basis that there has been no significant change in economic position.
Persons exchanging securities for Creation Units or
redeeming Creation Units should consult their own tax adviser with respect to
whether wash sale rules apply and when a loss might be
deductible and the tax treatment of any creation or redemption
transaction.
Under
current U.S. federal income tax laws, any capital gain or loss realized upon a
redemption (or creation) of Creation Units is generally
treated as long-term capital gain or loss if the Fund shares (or securities
surrendered) have been held for more than one year and as a
short-term capital gain or loss if the Fund shares (or securities surrendered)
have been held for one year or less.
Other
Information. An
additional 3.8% Medicare tax is imposed on certain net investment income
(including ordinary dividends and capital
gain distributions received from the Fund and net gains from redemptions or
other taxable dispositions of Fund shares) of U.S.
individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds certain threshold
amounts.
You may be
subject to backup withholding at a rate of 24% with respect to taxable
distributions if you do not provide your correct taxpayer
identification number, or certify that it is correct, or if you have been
notified by the IRS that you are subject to backup
Calvert | Shareholder
Information
Shareholder
Information (Con’t)
withholding.
Shareholders who are not citizens or residents of the United States and certain
foreign entities will generally be subject to
withholding of U.S. tax of 30% on distributions made by the Fund of investment
income and short-term capital gains.
Withholding
of U.S. tax is required (at a 30% rate) on payments of taxable dividends made to
certain non-U.S. entities that fail to comply (or
be deemed compliant) with extensive reporting and withholding requirements
designed to inform the U.S. Department of the
Treasury of U.S.-owned foreign investment accounts. Shareholders may be
requested to provide additional information to the Fund to
enable the Fund to determine whether withholding is required.
Reporting
to you and the IRS is required annually on Form 1099-B not only the gross
proceeds of Fund shares you sell or redeem but also
their cost basis. Shareholders should contact their intermediaries with respect
to reporting of cost basis and available elections with
respect to their accounts. You should carefully review the cost basis
information provided by the applicable intermediary and make any
additional basis, holding period or other adjustments that are required when
reporting these amounts on your federal income tax
returns.
Because
each investor’s tax circumstances are unique and the tax laws may change, you
should consult your tax advisor about your investment.
Tax-Advantaged
Product Structure
Unlike
interests in many conventional mutual funds, the shares are
traded throughout the day on a national securities exchange, whereas
mutual fund interests are typically only bought and sold at closing NAVs. The
shares have been
designed to be tradable in the
secondary market on a national securities exchange on an intra-day basis, and to
be created and redeemed in Creation Units at each day’s
next calculated NAV. Shares are created and redeemed principally in kind. The
in-kind arrangements are designed to protect
ongoing shareholders from adverse effects on the Fund’s portfolio that could
arise from frequent cash creation and redemption
transactions. In a conventional mutual fund, redemptions can have an adverse tax
impact on taxable shareholders because the mutual
fund may need to sell portfolio securities to obtain cash to meet fund
redemptions. These sales may generate taxable gains for the
shareholders of the mutual fund, whereas the shares‘ in-kind
redemption mechanism generally will not lead toa tax event for the Fund
or its ongoing shareholders.
Potential
Conflicts of Interest
As a
diversified global financial services firm, Morgan Stanley, the parent company
of the Adviser, engages in a broad spectrum of activities,
including financial advisory services, investment management activities,
lending, commercial banking, sponsoring and managing
private investment funds, engaging in broker-dealer transactions and principal
securities, commodities and foreign exchange
transactions, research publication and other activities. In the ordinary course
of its business, Morgan Stanley is a full-service investment
banking and financial services firm and therefore engages in activities where
Morgan Stanley’s interests or the interests of its
clients may conflict with the interests of the Fund. Morgan Stanley advises
clients and sponsors, manages or advises other investment
funds and investment programs, accounts and businesses (collectively, together
with any new or successor funds, programs,
accounts or businesses, the ‘‘Affiliated Investment Accounts’’) with a wide
variety of investment objectives that in some instances
may overlap or conflict with the Fund’s investment objectives and present
conflicts of interest. In addition, Morgan Stanley may also
from time to time create new or successor Affiliated Investment Accounts that
may compete with the Fund and present similar
conflicts of interest. The discussion below enumerates certain actual, apparent
and potential conflicts of interest. There is no assurance
that conflicts of interest will be resolved in favor of Fund shareholders and,
in fact, they may not be. Conflicts of interest not
described below may also exist.
For more
information about conflicts of interest, see the section entitled “Potential
Conflicts of Interest” in the SAI.
Material
Nonpublic Information. It is
expected that confidential or material nonpublic information regarding an
investment or potential
investment opportunity may become available to the Adviser. If such information
becomes available, the Adviser may be precluded
(including by applicable law or internal policies or procedures) from pursuing
an investment or disposition opportunity with
respect to such investment or investment opportunity. Morgan Stanley has
established certain information barriers and other policies
to address the sharing of information between different businesses within Morgan
Stanley. In limited circumstances, however,
including for purposes of managing business and reputational risk, and subject
to policies and procedures and any applicable
regulations, personnel, including personnel of the Adviser, on one side of an
information barrier may have access to information
and personnel on the other side of the information barrier through “wall
crossings.” The Adviser faces conflicts of interest
in determining whether to engage in such wall crossings. Information obtained in
connection with such wall crossings may limit or
restrict the ability of the Adviser to engage in or otherwise effect
transactions on behalf of the Fund (including purchasing or selling
securities that the Adviser may otherwise have purchased or sold for the Fund in
the absence of a wall crossing).
Investments
by Morgan Stanley and its Affiliated Investment Accounts. In
serving in multiple capacities to Affiliated Investment Accounts,
Morgan Stanley, including the Adviser and the Investment team, may have
obligations to other clients or investors in Affiliated
Investment Accounts, the fulfillment of which may not be in the best interests
of the Fund or its shareholders. The Fund’s investment
objectives may overlap with the investment objectives of certain Affiliated
Investment Accounts. As a result, the members
Calvert | Shareholder
Information
Shareholder
Information (Con’t)
of an
Investment team may face conflicts in the allocation of investment opportunities
among the Fund and other investment funds, programs,
accounts and businesses advised by or affiliated with the Adviser. Certain
Affiliated Investment Accounts may provide for higher
management or incentive fees or greater expense reimbursements or overhead
allocations, all of which may contribute to this conflict
of interest and create an incentive for the Adviser to favor such other
accounts. To seek to reduce potential conflicts of interest
and to attempt to allocate such investment opportunities in a fair and equitable
manner, the Adviser has implemented allocation
policies and procedures. These policies and procedures are intended to give all
clients of the Adviser, including the Fund, fair
access to investment opportunities consistent with the requirements of
organizational documents, investment strategies, applicable
laws and regulations, and the fiduciary duties of the Adviser.
Payments
to Broker-Dealers and Other Financial Intermediaries. The
Adviser and/or the Distributor may pay compensation, out of their own
funds and not as an expense of the Fund, to certain Financial Intermediaries
(which may include affiliates of the Adviser and
Distributor), including recordkeepers and administrators of various deferred
compensation plans, in connection with the sale, distribution,
marketing and retention of shares of the Fund and/or shareholder servicing. The
prospect of receiving, or the receipt of, additional
compensation, as described above, by Financial Intermediaries may provide such
Financial Intermediaries and their financial
advisors and other salespersons with an incentive to favor sales of shares of
the Fund over other investment options with respect to
which these Financial Intermediaries do not receive additional compensation (or
receives lower levels of additional compensation).
These payment arrangements, however, will not change the price that an investor
pays for shares of the Fund or the amount
that the Fund receives to invest on behalf of an investor. Investors may wish to
take such payment arrangements into account when
considering and evaluating any recommendations relating to Fund shares and
should review carefully any disclosures provided by
Financial Intermediaries as to their compensation. In addition, in certain
circumstances, the Adviser restricts, limits or reduces the amount of
the Fund’s investment, or restricts the type of governance or voting rights it
acquires or exercises, where the Fund (potentially
together with Morgan Stanley) exceeds a certain ownership interest, or possesses
certain degrees of voting or control or has other
interests.
Morgan
Stanley Trading and Principal Investing Activities.
Notwithstanding anything to the contrary herein, Morgan Stanley will
generally
conduct its sales and trading businesses, publish research and analysis, and
render investment advice without regard for the Fund’s
holdings, although these activities could have an adverse impact on the value of
one or more of the Fund’s investments, or could
cause Morgan Stanley to have an interest in one or more portfolio investments
that is different from, and potentially adverse to, that
of the Fund.
Morgan
Stanley’s Investment Banking and Other Commercial Activities. Morgan
Stanley advises clients on a variety of mergers, acquisitions,
restructuring, bankruptcy and financing transactions. Morgan Stanley may act as
an advisor to clients, including other investment
funds that may compete with the Fund and with respect to investments that the
Fund may hold. Morgan Stanley may give
advice and take action with respect to any of its clients or proprietary
accounts that may differ from the advice given, or may involve an
action of a different timing or nature than the action taken, by the Fund.
Morgan Stanley may give advice and provide recommendations
to persons competing with the Fund and/or any of the Fund’s investments that are
contrary to the Fund’s best interests
and/or the best interests of any of its investments. Morgan Stanley’s activities
on behalf of its clients (such as engagements as an
underwriter or placement agent) may restrict or otherwise limit investment
opportunities that may otherwise be available to the Fund.
Morgan
Stanley may be engaged to act as a financial advisor to a company in connection
with the sale of such company, or subsidiaries
or divisions thereof, may represent potential buyers of businesses through its
mergers and acquisition activities and may provide
lending and other related financing services in connection with such
transactions. Morgan Stanley’s compensation for such activities
is usually based upon realized consideration and is usually contingent, in
substantial part, upon the closing of the transaction.
Under these circumstances, the Fund may be precluded from participating in a
transaction with or relating to the company
being sold or participating in any financing activity related to a merger or an
acquisition.
Calvert | Financial
Highlights
No
financial information is provided for the Fund because it had not commenced
operations as of the date of this Prospectus. Financial
information will be provided in the first shareholder report after commencement
of operations.
Calvert | Premium/Discount
Information
Premium/Discount
Information
The Fund
has not yet commenced operations and, therefore, does not have information about
the differences between the Fund’s daily
market price on NYSE
Arca and its
NAV. Information regarding how often the closing trading price of the
shares of the
Fund was above
(i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund for the
most recently completed calendar year and the most
recently completed calendar quarter(s) since that year (or the life of the Fund,
if shorter) can be found at www.calvert.com.
Calvert |
Continuous
Offering Information
Continuous
Offering Information
The method
by which Creation Units are created and traded may raise certain issues under
applicable securities laws. Because new Creation
Units are issued and sold by the Trust on an ongoing basis, a “distribution,” as
such term is used in the Securities Act may occur at
any point. Broker dealers and other persons are cautioned that some activities
on their part may, depending on the circumstances,
result in their being deemed participants in a distribution in a manner which
could render them statutory underwriters
and subject them to the prospectus delivery and liability provisions of the
Securities Act.
For
example, a broker dealer firm or its client may be deemed a statutory
underwriter if it takes Creation Units after placing an order with the
Distributor, breaks them down into constituent shares, and
sells such shares directly
to customers, or if it chooses to couple the
creation of a supply of new shares with an
active selling effort involving solicitation of secondary market demand for
shares. A
determination
of whether one is an underwriter for purposes of the Securities Act must take
into account all the facts and circumstances
pertaining to the activities of the broker dealer or its client in the
particular case, and the examples mentioned above should not
be considered a complete description of all the activities that could lead to a
categorization as an underwriter.
Broker
dealers who are not “underwriters” but are participating in a distribution (as
contrasted to ordinary secondary trading transactions),
and thus dealing with shares that are
part of an “unsold allotment” within the meaning of Section 4(a)(3)(C) of the
Securities
Act, would be unable to take advantage of the prospectus delivery exemption
provided by Section 4(a)(3) of the Securities Act. This
is because the prospectus delivery exemption in Section 4(a)(3) of the
Securities Act is not available in respect of such transactions
as a result of Section 24(d) of the 1940 Act. As a result, broker dealer firms
should note that dealers who are not underwriters
but are participating in a distribution (as contrasted with ordinary secondary
market transactions) and thus dealing with the
shares that are
part of an overallotment within the meaning of Section 4(a)(3)(A) of the
Securities Act would be unable to take advantage
of the prospectus delivery exemption provided by Section 4(a)(3) of the
Securities Act. Firms that incur a prospectus delivery
obligation with respect to shares are
reminded that, under Rule 153 of the Securities Act, a prospectus delivery
obligation under
Section 5(b)(2) of the Securities Act owed to an exchange member in connection
with a sale on the
Exchange is
satisfied by the fact that
the prospectus is available at the
Exchange upon
request. The prospectus delivery mechanism provided in Rule 153 is only
available
with respect to transactions on an exchange.
In
addition, certain affiliates of the Fund and the Adviser may purchase and resell
Fund shares pursuant
to this Prospectus.
The
Calvert Principles for Responsible Investment
We believe
that most corporations deliver benefits to society, through their products and
services, creation of jobs, payment of taxes and the
sum of their behaviors. As a responsible investor, Calvert Research and
Management seeks to invest in companies and other issuers
that provide positive leadership in the areas of their operations and overall
activities that are material to improving long-term shareholder
value and societal outcomes.
Calvert
seeks to invest in issuers that balance the needs of financial and nonfinancial
stakeholders and demonstrate a commitment to the global
commons, as well as to the rights of individuals and communities.
The
Calvert Principles for Responsible Investment (Calvert Principles) provide a
framework for Calvert’s evaluation of investments and guide
Calvert’s stewardship on behalf of clients through active engagement with
issuers. The Calvert Principles seek to identify companies
and other issuers that operate in a manner that is consistent with or
promote:
Environmental
Sustainability and Resource Efficiency
• |
Reduce
the negative impact of operations and practices on the
environment |
• |
Manage
water scarcity and ensure efficient and equitable access to clean
sources |
• |
Mitigate
impact on all types of natural capital |
• |
Diminish
climate-related risks and reduce carbon
emissions |
• |
Drive
sustainability innovation and resource efficiency through business
operations or other activities, products and
services |
Equitable
Societies and Respect for Human Rights
• |
Respect
consumers by marketing products and services in a fair and ethical manner,
maintaining integrity in customer relations and
ensuring the security of sensitive consumer
data |
• |
Respect
human rights, respect culture and tradition in local communities and
economies, and respect Indigenous Peoples’
Rights |
• |
Promote
diversity and gender equity across workplaces, marketplaces and
communities |
• |
Demonstrate
a commitment to employees by promoting development, communication,
appropriate economic opportunity and decent
workplace standards |
• |
Respect
the health and well-being of consumers and other users of products and
services by promoting product safety |
Accountable
Governance and Transparency
• |
Provide
responsible stewardship of capital in the best interests of shareholders
and debtholders |
• |
Exhibit
accountable governance and develop effective boards or other governing
bodies that reflect expertise and diversity of perspective
and provide oversight of sustainability risk and
opportunity |
• |
Include
environmental and social risks, impacts and performance in material
financial disclosures to inform shareholders and debtholders,
benefit stakeholders and contribute to
strategy |
• |
Lift
ethical standards in all operations, including in dealings with customers,
regulators and business partners |
• |
Demonstrate
transparency and accountability in addressing adverse events and
controversies while minimizing risks and building trust |
Through
the application of the Calvert Principles, Calvert could have no or limited
exposure to issuers that:
• |
Demonstrate
poor management of environmental risks or contribute significantly to
local or global environmental problems. |
• |
Demonstrate
a pattern of employing forced, compulsory or child
labor. |
• |
Exhibit
a pattern and practice directly or through the company’s supply chain of
human rights violations or are complicit in human
rights violations committed by governments or security forces, including
those that are under U.S. or international sanction
for human rights abuses. |
• |
Exhibit
a pattern and practice of violating the rights and protections of
Indigenous Peoples. |
• |
Demonstrate
poor governance or engage in harmful or unethical
practices. |
• |
Manufacture
tobacco products. |
• |
Have
significant and direct involvement in the manufacture of alcoholic
beverages without taking significant steps to reduce the harmful
impact of these products. |
• |
Have
significant and direct involvement in gambling or gaming operations
without taking significant steps to reduce the harmful impact
of these businesses. |
• |
Have
significant and direct involvement in the manufacture of civilian handguns
and/or automatic weapons marketed to
civilians. |
• |
Have
significant and direct involvement in the manufacture of military weapons
that violate international humanitarian law, including
cluster bombs, landmines, biochemical weapons, nuclear weapons, blinding
laser weapons, or incendiary weapons. |
• |
Use
animals in product testing without countervailing social benefits such as
the development of medical treatments to ease human
suffering and disease |
Where to
Find Additional Information
In
addition to this Prospectus, the Fund has an SAI, dated January
[
],
2023 (as may
be supplemented from time to time), which contains
additional, more detailed information about the Trust and the Fund. The SAI is
incorporated by reference into this Prospectus
and, therefore, legally forms a part of this Prospectus. Certain affiliates of
the Fund and the Adviser may purchase and resell
Fund shares pursuant to this Prospectus.
The Trust
publishes Annual and Semi-Annual Reports (“Shareholder Reports”) that contain
additional information about the Fund’s investments.
In the Fund’s Annual Report to Shareholders, you will find a discussion of the
market conditions and the investment strategies
that significantly affected such Fund’s performance during the last fiscal year.
For additional Trust information, including information
regarding the investments comprising the Fund, please call the toll-free number
below.
You may
obtain the SAI and Shareholder Reports without charge by contacting the Trust at
the toll-free number below or on our website
at: www.calvert.com. If you
purchased shares through a Financial Intermediary, you may also obtain these
documents, without
charge, by contacting your Financial Intermediary.
Shareholder
Reports and other information about the Fund are available on the EDGAR Database
on the SEC’s website at http://www.sec.gov,
and copies of this information may be obtained, after paying a duplicating fee,
by electronic request at the following e-mail
address: [email protected].
Morgan
Stanley ETF Trust
c/o Morgan
Stanley Investment Management Inc.
522 Fifth
Avenue
New York,
New York 10036
For
Shareholder Inquiries,
call
toll-free 800-836-2414.
Prices and
Investment Results are available at www.calvert.com.
The
Trust’s 1940 Act registration number is 811-23820.
© 2023
Calvert Research and Management