N-CSRS 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number: 811-23820
 
Morgan Stanley ETF Trust
(Exact name of registrant as specified in charter)
 
1585 Broadway, New York, New York 10036
(Address of principal executive offices)                                            (Zip code)
 
John H. Gernon
1585 Broadway, New York, New York 10036
(Name and address of agent for service)
 
Registrant's telephone number, including area code: 212-762-1886
 
Date of fiscal year end: September 30.
 
Date of reporting period: March 31, 2024.
 
 
Item 1 - Report to Shareholders

 
Morgan
Stanley
ETF
Trust
Calvert
International
Responsible
Index
ETF
NYSE
Arca:
CVIE
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
13
Statement
of
Operations
....................................................................................
14
Statements
of
Changes
in
Net
Assets
.......................................................................
15
Financial
Highlights
.........................................................................................
16
Notes
to
Financial
Statements
...............................................................................
17
Liquidity
Risk
Management
Program
.........................................................................
24
Important
Notices
..........................................................................................
25
U.S.
Customer
Privacy
Notice
...............................................................................
26
Trustees
and
Officers
Information
...........................................................................
29
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Calvert
International
Respon-
sible
Index
ETF (the
“Fund”)
performed
during
the
latest
six-month
period.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Calvert
International
Responsible
Index
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
six-month
period
ended
March
31,
2024 and
held
for
the
entire
six-month
period.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(
10/1/23
)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Calvert
International
Responsible
Index
ETF
$1,000.00
$1,181.50
$1,024.10
$0.98
$0.91
0.18%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
183/366
(to
reflect
the
most
recent
one-half
year
period).
**
Annualized.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Calvert
International
Responsible
Index
ETF
Morgan
Stanley
ETF
Trust
*
Cumulative
Return
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im
.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
MSCI
World
ex
USA
Index
(1)
and
the
Calvert
International
Responsible
Index
(2)
Period
Ended
March
31,
2024
Total
Returns
Average
Annual
Six
Months
*
One
Year
Since
Inception
(3)
Calvert
International
Responsible
Index
ETF
-
NAV
(4)
18.15%
16.50%
13.75%
Calvert
International
Responsible
Index
ETF
-
Market
Price
(4)
18.69%
16.40%
14.08%
MSCI
World
ex
USA
Index
16.69%
15.29%
12.62%
Calvert
International
Responsible
Index
18.47%
16.51%
14.07%
(1)
The
MSCI
World
ex
USA
Index
is
a
free
float
adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
global
equity
market
performance
of
developed
markets,
excluding
the
United
States.
The
term
"free
float"
represents
the
portion
of
shares
outstanding
that
are
deemed
to
be
available
for
purchase
in
the
public
equity
markets
by
investors.
The
performance
of
the
Index
is
listed
in
U.S.
dollars
and
assumes
reinvestment
of
net
dividends.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
(2)
Calvert
International
Responsible
Index
is
composed
of
common
stocks
of
large
companies
in
developed
markets,
excluding
the
U.S.
Large
companies
in
developed
markets
are
the
1,000
largest
publicly
traded
companies,
excluding
real
estate
investment
trusts
and
business
development
companies,
in
markets
that
Calvert
Research
and
Management
("CRM")
determines
to
be
developed
markets
based
on
a
set
of
criteria
including
level
of
economic
development,
existence
of
capital
controls,
openness
to
foreign
direct
investment,
market
trading
and
liquidity
conditions,
regulatory
environment,
treatment
of
minority
shareholders,
and
investor
expectations.
The
Calvert
Principles
for
Responsible
Investment
serve
as
a
framework
for
considering
environmental,
social
and
governance
factors
that
may
affect
investment
performance.
Stocks
are
weighted
in
the
Calvert
Index
based
on
their
float-adjusted
market
capitalization,
by
country
and
by
sector,
subject
to
certain
prescribed
limits.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
Historical
performance
of
the
index
illustrates
market
trends
and
does
not
represent
the
past
or
future
performance
of
the
fund.
(3)
For
comparative
purposes,
average
annual
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(4)
Commenced
operations
on
January
30,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Calvert
International
Responsible
Index
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Common
Stocks
(99.3%)
Australia
(
4
.5
%
)
ANZ
Group
Holdings
Ltd.
16,809
$
322,406
APA
Group
7,885
43,263
ASX
Ltd.
236
10,227
Atlas
Arteria
Ltd.
4,606
16,016
BlueScope
Steel
Ltd.
6,398
99,551
Brambles
Ltd.
9,009
94,921
CAR
Group
Ltd.
817
19,231
Cochlear
Ltd.
403
88,740
Coles
Group
Ltd.
10,124
111,887
Commonwealth
Bank
of
Australia
8,504
667,648
Computershare
Ltd.
2,874
48,956
Fortescue
Ltd.
14,845
248,901
IGO
Ltd.
9,265
42,735
Insurance
Australia
Group
Ltd.
13,830
57,745
Macquarie
Group
Ltd.
2,141
278,939
Medibank
Pvt.
Ltd.
15,518
38,066
National
Australia
Bank
Ltd.
15,693
354,648
Pilbara
Minerals
Ltd.
36,765
91,865
Qantas
Airways
Ltd.(a)
11,107
39,492
QBE
Insurance
Group
Ltd.
8,285
97,995
REA
Group
Ltd.
73
8,833
Reece
Ltd.
1,252
22,952
Sonic
Healthcare
Ltd.
3,898
74,791
South32
Ltd.
57,281
112,110
Suncorp
Group
Ltd.
7,083
75,691
Telstra
Group
Ltd.
9,868
24,850
Transurban
Group
22,065
191,744
Wesfarmers
Ltd.
6,499
290,013
Westpac
Banking
Corp.
17,198
292,841
WiseTech
Global
Ltd.
544
33,343
Woolworths
Group
Ltd.
9,447
204,434
4,104,834
Austria
(
0
.2
%
)
Erste
Group
Bank
AG
1,227
54,729
Mondi
plc
457
8,056
OMV
AG
1,764
83,559
Verbund
AG
545
39,878
voestalpine
AG
1,378
38,694
224,916
Belgium
(
0
.6
%
)
Ackermans
&
van
Haaren
NV
86
15,047
Ageas
SA/NV
180
8,344
Anheuser-Busch
InBev
SA/NV
4,417
269,335
Azelis
Group
NV
412
8,717
D'ieteren
Group
88
19,540
Groupe
Bruxelles
Lambert
NV
844
63,861
KBC
Group
NV
682
51,132
Liberty
Global
Ltd.,
Class
A(a)
436
7,377
Sofina
SA
49
11,007
Solvay
SA
267
7,295
Syensqo
SA(a)
313
29,673
UCB
SA
520
64,247
Umicore
SA
245
5,291
560,866
Canada
(
9
.0
%
)
Agnico
Eagle
Mines
Ltd.
4,115
245,608
Shares
Value
Air
Canada(a)
1,568
$
22,722
Algonquin
Power
&
Utilities
Corp.
4,449
28,142
Alimentation
Couche-Tard,
Inc.
5,222
298,328
Bank
of
Montreal
3,527
344,686
Bank
of
Nova
Scotia
(The)
6,354
329,004
BCE,
Inc.
1,860
63,267
Brookfield
Asset
Management
Ltd.,
Class
A
1,928
81,066
Brookfield
Corp.,
Class
A
5,905
247,327
CAE,
Inc.(a)
2,478
51,217
Cameco
Corp.
5,187
224,767
Canadian
Imperial
Bank
of
Commerce
4,981
252,758
Canadian
National
Railway
Co.
3,669
483,606
Canadian
Pacific
Kansas
City
Ltd.
5,144
453,980
Canadian
Tire
Corp.
Ltd.,
Class
A
306
30,549
CCL
Industries,
Inc.,
Class
B
914
46,759
CGI,
Inc.(a)
1,453
160,455
Constellation
Software,
Inc.
122
333,567
Descartes
Systems
Group,
Inc.
(The)(a)
278
25,453
Dollarama,
Inc.
1,554
118,498
Element
Fleet
Management
Corp.
621
10,045
Emera,
Inc.
507
17,860
Empire
Co.
Ltd.,
Class
A
1,223
29,896
FirstService
Corp.
57
9,446
Fortis,
Inc.
1,668
65,968
George
Weston
Ltd.
60
8,114
Great-West
Lifeco,
Inc.
1,508
48,274
Hydro
One
Ltd.(b)
2,842
82,955
IGM
Financial,
Inc.
387
9,989
Intact
Financial
Corp.
929
151,056
Loblaw
Cos.
Ltd.
1,154
128,000
Magna
International,
Inc.
1,221
66,579
Manulife
Financial
Corp.
10,907
272,665
Metro,
Inc.,
Class
A
1,939
104,197
National
Bank
of
Canada
1,298
109,403
Nutrien
Ltd.
2,292
124,639
Open
Text
Corp.
2,361
91,701
Power
Corp.
of
Canada
4,282
120,178
Quebecor,
Inc.,
Class
B
355
7,789
RB
Global,
Inc.
1,050
80,051
Rogers
Communications,
Inc.,
Class
B
1,893
77,636
Royal
Bank
of
Canada
6,818
688,325
Saputo,
Inc.
314
6,184
Shopify,
Inc.,
Class
A(a)
7,016
541,732
Stantec,
Inc.
140
11,634
Sun
Life
Financial,
Inc.
3,135
171,223
Teck
Resources
Ltd.,
Class
B
5,277
241,769
TELUS
Corp.
3,994
63,957
TFI
International,
Inc.
560
89,385
Thomson
Reuters
Corp.
1,091
169,948
TMX
Group
Ltd.
1,465
38,681
Toromont
Industries
Ltd.
499
48,065
Toronto-Dominion
Bank
(The)
8,521
514,755
West
Fraser
Timber
Co.
Ltd.
506
43,733
WSP
Global,
Inc.
751
125,288
8,212,879
Chile
(
0
.3
%
)
Antofagasta
plc
4,207
108,362
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
International
Responsible
Index
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Chile
(cont’d)
Lundin
Mining
Corp.
11,603
$
118,838
227,200
China
(
0
.8
%
)
BOC
Hong
Kong
Holdings
Ltd.
20,000
53,536
Chow
Tai
Fook
Jewellery
Group
Ltd.
28,400
41,876
ESR
Group
Ltd.(b)
32,800
35,078
NXP
Semiconductors
NV
992
245,788
Prosus
NV
7,659
240,500
Wharf
Holdings
Ltd.
(The)
18,000
59,107
Xinyi
Glass
Holdings
Ltd.
37,000
39,192
715,077
Denmark
(
2
.9
%
)
AP
Moller
-
Maersk
A/S,
Class
B
3
3,907
Carlsberg
A/S,
Class
B
500
68,312
Coloplast
A/S,
Class
B
565
76,277
Danske
Bank
A/S
3,095
92,583
Demant
A/S(a)
542
26,918
DSV
A/S
628
102,022
Genmab
A/S(a)
339
102,291
Jyske
Bank
A/S
161
13,581
Novo
Nordisk
A/S,
Class
B
13,704
1,748,691
Novonesis
(Novozymes)
B,
Class
B
2,019
118,454
Orsted
A/S(a)(b)
482
26,827
Pandora
A/S
583
94,079
ROCKWOOL
A/S,
Class
B(a)
125
41,066
Tryg
A/S
334
6,877
Vestas
Wind
Systems
A/S(a)
4,942
138,103
2,659,988
Finland
(
0
.8
%
)
Elisa
OYJ
686
30,635
Fortum
OYJ
2,014
24,894
Kesko
OYJ,
Class
B
1,769
33,081
Kone
OYJ,
Class
B
1,371
63,877
Mandatum
OYJ(a)
741
3,317
Metso
OYJ
2,419
28,751
Neste
OYJ
4,402
119,329
Nokia
OYJ
29,637
105,338
Nordea
Bank
Abp
12,367
137,866
Sampo
OYJ,
Class
A
856
36,531
Stora
Enso
OYJ,
Class
R
3,574
49,735
UPM-Kymmene
OYJ
2,608
86,950
Valmet
OYJ
212
5,584
Wartsila
OYJ
Abp
725
11,032
736,920
France
(
8
.0
%
)
Accor
SA
938
43,865
Air
France-KLM(a)
556
6,200
Air
Liquide
SA
2,560
533,164
Amundi
SA(b)
124
8,524
Arkema
SA
525
55,305
AXA
SA
8,833
332,123
BioMerieux
195
21,534
BNP
Paribas
SA
4,937
351,163
Bouygues
SA
2,067
84,450
Bureau
Veritas
SA
1,597
48,776
Capgemini
SE
738
170,009
Shares
Value
Carrefour
SA
2,214
$
37,959
Cie
de
Saint-Gobain
SA
4,119
319,982
Cie
Generale
des
Etablissements
Michelin
SCA
3,278
125,749
Credit
Agricole
SA
5,026
74,994
Danone
SA
3,683
238,221
Dassault
Systemes
SE
3,113
137,978
Edenred
SE
1,347
71,952
Eiffage
SA
401
45,538
Elis
SA
1,034
23,518
Engie
SA
9,092
152,298
EssilorLuxottica
SA
1,426
322,955
Eurazeo
SE
192
16,848
Getlink
SE
2,115
36,045
Hermes
International
SCA
163
416,511
Ipsen
SA
163
19,417
Kering
SA
320
126,611
Legrand
SA
1,283
136,098
L'Oreal
SA
1,106
523,959
LVMH
Moet
Hennessy
Louis
Vuitton
SE
1,151
1,036,356
Neoen
SA(b)
342
9,692
Orange
SA
8,672
101,974
Pernod
Ricard
SA
1,150
186,238
Publicis
Groupe
SA
1,231
134,344
Renault
SA
954
48,214
Rexel
SA
1,259
34,034
Safran
SA
1,702
386,105
Sartorius
Stedim
Biotech(a)
250
71,361
SCOR
SE
336
11,638
SEB
SA
213
27,283
Societe
Generale
SA
2,318
62,110
Sodexo
SA
482
41,374
SOITEC(a)
262
27,136
Teleperformance
SE
151
14,690
Thales
SA
494
84,323
Valeo
SE
1,844
23,082
Veolia
Environnement
SA
3,500
113,891
Verallia
SA(b)
751
29,231
Vinci
SA
2,512
322,191
7,247,013
Germany
(
6
.6
%
)
adidas
AG
768
171,694
Allianz
SE
1,778
533,443
Bayerische
Motoren
Werke
AG
1,702
196,610
Bechtle
AG
659
34,860
Beiersdorf
AG
400
58,298
BioNTech
SE
ADR(a)
379
34,963
Brenntag
SE
802
67,630
Commerzbank
AG
5,852
80,456
Continental
AG
576
41,617
Covestro
AG(a)(b)
1,493
81,719
CTS
Eventim
AG
&
Co.
KGaA
503
44,790
Daimler
Truck
Holding
AG
2,313
117,308
Deutsche
Boerse
AG
838
171,641
Deutsche
Lufthansa
AG(a)
3,304
25,981
Deutsche
Post
AG
5,206
224,421
Deutsche
Telekom
AG
13,837
336,239
E.ON
SE
7,759
107,973
Evonik
Industries
AG
2,607
51,595
GEA
Group
AG
901
38,135
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
International
Responsible
Index
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Germany
(cont’d)
Hannover
Rueck
SE
274
$
75,075
HeidelbergCement
AG
1,648
181,455
HelloFresh
SE(a)
636
4,528
Henkel
AG
&
Co.
KGaA
619
44,630
HUGO
BOSS
AG
193
11,385
Infineon
Technologies
AG
7,349
250,132
KION
Group
AG
722
38,037
Knorr-Bremse
AG
354
26,801
Mercedes-Benz
Group
AG
4,513
359,753
Merck
KGaA
448
79,156
MTU
Aero
Engines
AG
279
70,870
Muenchener
Rueckversicherungs-Gesellschaft
AG
642
313,607
Nemetschek
SE
499
49,430
Puma
SE
124
5,627
SAP
SE
5,099
993,779
Scout24
SE(b)
353
26,633
Siemens
AG
3,761
718,790
Siemens
Energy
AG(a)
1,563
28,705
Siemens
Healthineers
AG(a)(b)
1,426
87,353
Symrise
AG,
Class
A
531
63,628
Talanx
AG
255
20,214
thyssenkrupp
AG
3,942
21,176
Volkswagen
AG
161
24,621
Vonovia
SE
2,335
69,097
Zalando
SE(a)(b)
1,459
41,741
6,025,596
Hong
Kong
(
1
.2
%
)
AIA
Group
Ltd.
54,000
362,578
CK
Infrastructure
Holdings
Ltd.
500
2,926
CLP
Holdings
Ltd.
7,500
59,749
Hang
Seng
Bank
Ltd.
7,700
84,266
Hong
Kong
Exchanges
&
Clearing
Ltd.
6,400
186,281
Hongkong
Land
Holdings
Ltd.
1,900
5,833
MTR
Corp.
Ltd.
1,000
3,297
Prudential
plc
10,665
100,101
Sino
Land
Co.
Ltd.
38,000
39,474
Sun
Hung
Kai
Properties
Ltd.
5,000
48,202
Swire
Pacific
Ltd.,
Class
A
2,500
20,571
Swire
Properties
Ltd.
13,800
28,988
Techtronic
Industries
Co.
Ltd.
6,500
88,118
WH
Group
Ltd.(b)
31,500
20,768
Wharf
Real
Estate
Investment
Co.
Ltd.
6,000
19,511
1,070,663
Ireland
(
0
.5
%
)
AerCap
Holdings
NV(a)
765
66,486
AIB
Group
plc
2,685
13,641
Bank
of
Ireland
Group
plc
3,963
40,446
Kerry
Group
plc,
Class
A
1,139
97,721
Kingspan
Group
plc
2,292
209,069
Smurfit
Kappa
Group
plc
705
32,184
459,547
Israel
(
0
.5
%
)
Bank
Hapoalim
BM
5,610
52,797
Bank
Leumi
Le-Israel
BM
5,395
45,016
Check
Point
Software
Technologies
Ltd.(a)
820
134,488
Mizrahi
Tefahot
Bank
Ltd.
624
23,487
Shares
Value
Nice
Ltd.
ADR(a)
587
$
152,984
408,772
Italy
(
2
.0
%
)
A2A
SpA
9,911
17,913
Amplifon
SpA
724
26,429
Assicurazioni
Generali
SpA
5,920
149,994
Banco
BPM
SpA
3,017
20,098
Coca-Cola
HBC
AG
1,082
34,212
Enel
SpA
45,184
298,599
FinecoBank
Banca
Fineco
SpA
2,723
40,834
Hera
SpA
5,146
18,151
Infrastrutture
Wireless
Italiane
SpA(b)
1,801
20,482
Interpump
Group
SpA
417
20,352
Intesa
Sanpaolo
SpA
82,791
300,700
Italgas
SpA
2,955
17,234
Mediobanca
Banca
di
Credito
Finanziario
SpA
653
9,739
Moncler
SpA
1,051
78,525
Nexi
SpA(a)(b)
2,708
17,179
Poste
Italiane
SpA(b)
2,485
31,145
PRADA
SpA
4,800
38,025
Prysmian
SpA
1,586
82,886
Recordati
Industria
Chimica
e
Farmaceutica
SpA
578
31,986
Reply
SpA
128
18,137
Snam
SpA
13,160
62,195
Telecom
Italia
SpA(a)
94,962
23,086
Terna
-
Rete
Elettrica
Nazionale
9,016
74,588
UniCredit
SpA
9,250
351,398
1,783,887
Japan
(
17
.3
%
)
Advantest
Corp.
3,700
163,676
Aeon
Co.
Ltd.
4,400
104,196
AGC,
Inc.
3,000
108,666
Aisin
Corp.
1,400
56,955
Ajinomoto
Co.,
Inc.
3,200
119,082
ANA
Holdings,
Inc.
2,500
52,199
Asahi
Group
Holdings
Ltd.
3,200
117,221
Astellas
Pharma,
Inc.
8,700
93,412
Bandai
Namco
Holdings,
Inc.
1,900
35,126
BayCurrent
Consulting,
Inc.
600
11,743
Bridgestone
Corp.
3,100
137,052
Canon,
Inc.
6,600
196,284
Central
Japan
Railway
Co.
4,400
109,081
Chugai
Pharmaceutical
Co.
Ltd.
4,500
171,443
Dai
Nippon
Printing
Co.
Ltd.
2,600
79,403
Daifuku
Co.
Ltd.
1,300
31,000
Dai-ichi
Life
Holdings,
Inc.
2,600
66,140
Daiichi
Sankyo
Co.
Ltd.
9,300
294,832
Daikin
Industries
Ltd.
1,400
190,650
Daito
Trust
Construction
Co.
Ltd.
100
11,378
Daiwa
House
Industry
Co.
Ltd.
4,300
127,484
Daiwa
Securities
Group,
Inc.
11,000
83,293
Denso
Corp.
8,600
163,937
Dentsu
Group,
Inc.
1,500
41,528
Disco
Corp.
400
145,865
East
Japan
Railway
Co.
4,800
91,959
Eisai
Co.
Ltd.
1,100
45,288
FANUC
Corp.
4,500
125,475
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
International
Responsible
Index
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Japan
(cont’d)
Fast
Retailing
Co.
Ltd.
800
$
246,906
Fuji
Electric
Co.
Ltd.
1,400
93,429
FUJIFILM
Holdings
Corp.
6,000
134,316
Fujitsu
Ltd.
7,000
111,814
Hankyu
Hanshin
Holdings,
Inc.
1,500
42,935
Hoya
Corp.
1,700
211,566
Hulic
Co.
Ltd.
4,800
49,159
Ibiden
Co.
Ltd.
700
31,155
Isuzu
Motors
Ltd.
5,600
75,446
Japan
Airlines
Co.
Ltd.
1,300
24,661
Japan
Exchange
Group,
Inc.
1,300
35,089
Japan
Post
Bank
Co.
Ltd.
4,400
47,243
Kao
Corp.
2,400
89,692
KDDI
Corp.
7,900
233,223
Keyence
Corp.
1,000
463,114
Kikkoman
Corp.
7,500
95,940
Kirin
Holdings
Co.
Ltd.
2,100
29,166
Komatsu
Ltd.
4,700
138,598
Kose
Corp.
300
16,032
Kubota
Corp.
6,500
101,637
Kyocera
Corp.
7,000
93,128
Kyowa
Kirin
Co.
Ltd.
2,600
46,642
LY
Corp.
28,700
72,535
M3,
Inc.
1,400
20,064
Makita
Corp.
1,400
39,545
MEIJI
Holdings
Co.
Ltd.
1,200
26,165
MinebeaMitsumi,
Inc.
2,800
54,596
MISUMI
Group,
Inc.
700
9,720
Mitsubishi
Chemical
Group
Corp.
14,700
89,291
Mitsubishi
Electric
Corp.
12,500
208,258
Mitsubishi
Estate
Co.
Ltd.
7,400
134,217
Mitsubishi
HC
Capital,
Inc.
9,800
68,152
Mitsubishi
Heavy
Industries
Ltd.
15,000
135,287
Mitsubishi
UFJ
Financial
Group,
Inc.
54,300
550,732
Mitsui
Fudosan
Co.
Ltd.
17,700
189,870
Mizuho
Financial
Group,
Inc.
12,400
244,813
MS&AD
Insurance
Group
Holdings,
Inc.
7,500
132,041
Murata
Manufacturing
Co.
Ltd.
9,300
174,177
Nidec
Corp.
2,100
86,362
Nintendo
Co.
Ltd.
4,700
256,482
Nippon
Paint
Holdings
Co.
Ltd.
8,200
58,759
Nippon
Telegraph
&
Telephone
Corp.
167,800
199,571
Nissan
Chemical
Corp.
300
11,328
Nitori
Holdings
Co.
Ltd.
100
15,078
Nitto
Denko
Corp.
300
27,305
Nomura
Holdings,
Inc.
20,200
128,692
Nomura
Research
Institute
Ltd.
1,700
47,817
Olympus
Corp.
7,300
104,837
Omron
Corp.
200
7,125
Ono
Pharmaceutical
Co.
Ltd.
2,900
47,463
Oracle
Corp.
Japan
100
7,496
Oriental
Land
Co.
Ltd.
6,000
191,761
ORIX
Corp.
6,100
132,927
Osaka
Gas
Co.
Ltd.
2,800
62,866
Otsuka
Corp.
2,800
59,221
Otsuka
Holdings
Co.
Ltd.
1,900
78,727
Panasonic
Holdings
Corp.
13,700
130,215
Rakuten
Group,
Inc.(a)
4,100
23,189
Shares
Value
Recruit
Holdings
Co.
Ltd.
8,200
$
359,165
Renesas
Electronics
Corp.
8,700
154,289
Resona
Holdings,
Inc.
15,300
94,219
SCREEN
Holdings
Co.
Ltd.
200
25,756
Secom
Co.
Ltd.
800
57,934
Sekisui
Chemical
Co.
Ltd.
3,600
52,521
Sekisui
House
Ltd.
4,500
102,104
SG
Holdings
Co.
Ltd.
3,000
37,950
Shin-Etsu
Chemical
Co.
Ltd.
9,600
419,027
Shionogi
&
Co.
Ltd.
1,500
76,643
Shiseido
Co.
Ltd.
1,200
32,746
SMC
Corp.
200
112,247
SoftBank
Corp.
16,300
209,048
SoftBank
Group
Corp.
5,200
307,922
Sompo
Holdings,
Inc.
4,500
93,957
Sony
Group
Corp.
6,300
538,234
Square
Enix
Holdings
Co.
Ltd.
600
23,081
Sumitomo
Electric
Industries
Ltd.
5,800
89,484
Sumitomo
Mitsui
Financial
Group,
Inc.
6,700
390,990
Sumitomo
Mitsui
Trust
Holdings,
Inc.
2,800
60,276
Suntory
Beverage
&
Food
Ltd.
1,400
47,288
Sysmex
Corp.
600
10,654
T&D
Holdings,
Inc.
2,100
36,444
Takeda
Pharmaceutical
Co.
Ltd.
9,400
261,047
TDK
Corp.
1,400
68,379
Terumo
Corp.
6,200
113,046
Toho
Co.
Ltd.
300
9,949
Tokio
Marine
Holdings,
Inc.
9,200
287,225
Tokyo
Electron
Ltd.
2,200
570,696
Tokyo
Gas
Co.
Ltd.
2,900
65,839
Tokyu
Corp.
4,300
52,235
TOPPAN
Holdings,
Inc.
2,900
72,354
Toray
Industries,
Inc.
13,700
65,683
TOTO
Ltd.
100
2,799
Toyota
Industries
Corp.
400
41,534
Toyota
Motor
Corp.
47,100
1,184,463
Trend
Micro,
Inc.
1,400
70,904
Unicharm
Corp.
1,600
50,946
West
Japan
Railway
Co.
2,800
58,277
Yakult
Honsha
Co.
Ltd.
700
14,301
Yamaha
Corp.
600
12,904
Yamaha
Motor
Co.
Ltd.
4,800
44,069
Yamato
Holdings
Co.
Ltd.
2,900
41,695
Yaskawa
Electric
Corp.
1,500
63,471
ZOZO,
Inc.
1,000
24,758
15,720,496
Jersey
(
0
.0
%
)
Arcadium
Lithium
plc
CDI(a)
5,357
23,695
Luxembourg
(
0
.0
%
)
Eurofins
Scientific
SE
706
45,047
Netherlands
(
3
.8
%
)
Aalberts
NV
1,120
53,936
ABN
AMRO
Bank
NV
CVA(b)
1,926
32,969
Adyen
NV(a)(b)
133
225,227
Aegon
Ltd.
5,086
31,035
Akzo
Nobel
NV
943
70,456
Argenx
SE(a)
274
108,336
ASM
International
NV
226
138,125
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
International
Responsible
Index
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Netherlands
(cont’d)
ASML
Holding
NV
1,759
$
1,694,930
ASR
Nederland
NV
216
10,589
BE
Semiconductor
Industries
NV
381
58,389
Euronext
NV(b)
394
37,531
IMCD
NV
290
51,161
ING
Groep
NV
12,921
212,753
JDE
Peet's
NV
1,672
35,140
Koninklijke
Ahold
Delhaize
NV
5,655
169,297
Koninklijke
KPN
NV
19,145
71,665
Koninklijke
Vopak
NV
839
32,376
NN
Group
NV
406
18,776
Pluxee
NV(a)
420
12,429
Universal
Music
Group
NV
4,317
129,987
Wolters
Kluwer
NV
1,422
222,992
3,418,099
New
Zealand
(
0
.2
%
)
Auckland
International
Airport
Ltd.
8,486
42,384
Fisher
&
Paykel
Healthcare
Corp.
Ltd.
1,300
19,945
Meridian
Energy
Ltd.
5,367
18,973
Spark
New
Zealand
Ltd.
7,365
20,991
Xero
Ltd.(a)
505
43,924
146,217
Norway
(
0
.6
%
)
AutoStore
Holdings
Ltd.(a)(b)
11,095
20,434
DNB
Bank
ASA
4,297
85,198
Gjensidige
Forsikring
ASA
1,289
18,678
Kongsberg
Gruppen
ASA
667
46,081
Mowi
ASA
3,908
71,668
Norsk
Hydro
ASA
19,430
106,386
Orkla
ASA
7,250
51,151
Salmar
ASA
133
8,771
Schibsted
ASA,
Class
A
1,126
35,995
Telenor
ASA
4,819
53,638
TOMRA
Systems
ASA
1,884
29,445
527,445
Portugal
(
0
.1
%
)
EDP
-
Energias
de
Portugal
SA
17,855
69,613
Jeronimo
Martins
SGPS
SA
1,899
37,696
107,309
Singapore
(
1
.0
%
)
DBS
Group
Holdings
Ltd.
9,900
264,298
Oversea-Chinese
Banking
Corp.
Ltd.
17,400
173,923
Singapore
Airlines
Ltd.
11,600
55,009
Singapore
Exchange
Ltd.
4,700
32,074
Singapore
Technologies
Engineering
Ltd.
11,100
33,063
Singapore
Telecommunications
Ltd.
53,700
100,667
STMicroelectronics
NV
2,987
128,829
United
Overseas
Bank
Ltd.
6,400
138,992
926,855
South
Africa
(
0
.3
%
)
Anglo
American
plc
11,306
278,762
South
Korea
(
3
.6
%
)
Delivery
Hero
SE(a)(b)
904
25,887
Doosan
Enerbility
Co.
Ltd.(a)
4,281
55,713
Hana
Financial
Group,
Inc.
2,012
88,027
HMM
Co.
Ltd.
2,083
24,370
Shares
Value
HYBE
Co.
Ltd.
211
$
35,892
Hyundai
Mobis
Co.
Ltd.
545
105,863
Hyundai
Motor
Co.
558
98,233
Kakao
Corp.
2,583
104,375
KB
Financial
Group,
Inc.
1,795
93,733
Kia
Corp.
1,424
118,468
Krafton,
Inc.(a)
174
32,312
L&F
Co.
Ltd.(a)
262
34,291
LG
Chem
Ltd.
269
87,918
LG
Electronics,
Inc.
608
43,717
LG
H&H
Co.
Ltd.
131
37,609
LG
Innotek
Co.
Ltd.
129
18,925
NAVER
Corp.
623
86,584
NCSoft
Corp.
71
10,864
POSCO
Holdings,
Inc.
712
222,657
Samsung
Biologics
Co.
Ltd.(a)(b)
29
17,944
Samsung
C&T
Corp.
144
17,125
Samsung
Electro-Mechanics
Co.
Ltd.
80
8,908
Samsung
Electronics
Co.
Ltd.
23,909
1,434,984
Shinhan
Financial
Group
Co.
Ltd.
2,489
87,265
SK
Hynix,
Inc.
2,545
336,876
3,228,540
Spain
(
2
.1
%
)
Acciona
SA
99
12,066
Aena
SME
SA(b)
384
75,666
Amadeus
IT
Group
SA
2,001
128,454
Banco
Bilbao
Vizcaya
Argentaria
SA
23,128
275,760
Banco
de
Sabadell
SA
10,994
17,276
Banco
Santander
SA
69,553
339,642
Bankinter
SA
5,414
39,655
CaixaBank
SA
18,164
88,140
Cellnex
Telecom
SA(b)
2,486
87,983
EDP
Renovaveis
SA
1,199
16,245
Enagas
SA
4,546
67,582
Iberdrola
SA
28,425
352,885
Industria
de
Diseno
Textil
SA
4,754
239,619
Naturgy
Energy
Group
SA
926
20,101
Redeia
Corp.
SA
2,027
34,600
Telefonica
SA
28,429
125,546
1,921,220
Sweden
(
2
.5
%
)
Alfa
Laval
AB
1,424
56,041
Assa
Abloy
AB,
Class
B
4,850
139,296
Atlas
Copco
AB,
Class
A
15,153
256,220
Beijer
Ref
AB,
Class
B
1,371
20,387
Boliden
AB
2,136
59,380
Castellum
AB(a)
3,754
49,468
Epiroc
AB,
Class
A
4,694
88,282
EQT
AB
1,841
58,298
Essity
AB,
Class
B
1,755
41,722
Getinge
AB,
Class
B
1,061
21,374
H
&
M
Hennes
&
Mauritz
AB,
Class
B
2,952
48,198
Hexagon
AB,
Class
B
10,837
128,411
Holmen
AB,
Class
B(a)
530
21,581
Husqvarna
AB,
Class
B
2,185
18,726
Industrivarden
AB,
Class
A
1,254
43,170
Indutrade
AB(a)
1,335
36,444
Investment
AB
Latour,
Class
B
406
10,689
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
International
Responsible
Index
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Sweden
(cont’d)
Investor
AB,
Class
B
8,940
$
224,616
Kinnevik
AB,
Class
B(a)
2,665
29,896
L
E
Lundbergforetagen
AB,
Class
B
386
20,916
Lifco
AB,
Class
B
1,092
28,555
Nibe
Industrier
AB,
Class
B
4,893
24,052
Saab
AB,
Class
B
275
24,484
Sagax
AB,
Class
B
968
25,566
Sandvik
AB
5,235
116,376
Skandinaviska
Enskilda
Banken
AB,
Class
A
6,963
94,391
SKF
AB,
Class
B
1,941
39,664
SSAB
AB,
Class
A
10,322
76,262
Svenska
Cellulosa
AB
SCA,
Class
B
3,599
55,301
Svenska
Handelsbanken
AB,
Class
A
2,646
26,788
Sweco
AB,
Class
B
727
8,193
Swedbank
AB,
Class
A
2,998
59,525
Swedish
Orphan
Biovitrum
AB(a)
915
22,865
Tele2
AB,
Class
B
1,354
11,131
Trelleborg
AB,
Class
B
1,142
40,895
Volvo
AB,
Class
B
8,452
229,310
2,256,473
Switzerland
(
5
.1
%
)
ABB
Ltd.
7,524
349,928
Adecco
Group
AG
1,543
61,089
Alcon,
Inc.
2,234
185,377
Avolta
AG(a)
272
11,334
Bachem
Holding
AG
143
13,717
Baloise
Holding
AG
410
64,320
Barry
Callebaut
AG
5
7,267
Belimo
Holding
AG
100
49,095
BKW
AG
109
16,749
Chocoladefabriken
Lindt
&
Spruengli
AG
1
120,795
Cie
Financiere
Richemont
SA
2,054
313,562
DKSH
Holding
AG
605
41,209
DSM-Firmenich
AG
700
79,682
Emmi
AG
2
1,987
Flughafen
Zurich
AG
155
35,209
Galenica
AG(b)
230
19,203
Geberit
AG
295
174,570
Georg
Fischer
AG
782
58,083
Givaudan
SA
36
160,515
Helvetia
Holding
AG
155
21,391
Julius
Baer
Group
Ltd.
857
49,553
Kuehne
+
Nagel
International
AG
223
62,144
Logitech
International
SA
521
46,715
Lonza
Group
AG
321
192,522
Novartis
AG
8,525
826,945
On
Holding
AG,
Class
A(a)
1,167
41,288
Partners
Group
Holding
AG
81
115,830
PSP
Swiss
Property
AG
247
32,414
Schindler
Holding
AG
286
69,857
SFS
Group
AG
78
10,271
SGS
SA(a)
822
79,854
SIG
Group
AG
1,506
33,441
Sika
AG
670
199,802
Sonova
Holding
AG
221
64,065
Straumann
Holding
AG
483
77,220
Swiss
Life
Holding
AG
112
78,613
Swiss
Prime
Site
AG
419
39,565
Shares
Value
Swisscom
AG(a)
111
$
67,953
Tecan
Group
AG
76
31,541
Temenos
AG
431
30,855
UBS
Group
AG
11,138
343,031
VAT
Group
AG(b)
146
75,747
Zurich
Insurance
Group
AG
576
310,990
4,665,298
Taiwan
(
5
.1
%
)
Accton
Technology
Corp.
1,000
14,327
Advantech
Co.
Ltd.
1,099
13,976
ASE
Technology
Holding
Co.
Ltd.
17,000
82,335
Cathay
Financial
Holding
Co.
Ltd.
74,000
111,566
Chailease
Holding
Co.
Ltd.
1,000
5,359
Chang
Hwa
Commercial
Bank
Ltd.
84,000
47,639
Chunghwa
Telecom
Co.
Ltd.
17,000
66,665
CTBC
Financial
Holding
Co.
Ltd.
94,000
95,165
Delta
Electronics,
Inc.
6,000
64,212
E
Ink
Holdings,
Inc.
5,000
35,465
Eva
Airways
Corp.
44,000
43,445
Evergreen
Marine
Corp.
Taiwan
Ltd.
11,000
60,493
Far
EasTone
Telecommunications
Co.
Ltd.
15,000
37,918
Feng
TAY
Enterprise
Co.
Ltd.
1,120
5,529
Fubon
Financial
Holding
Co.
Ltd.
57,400
124,293
Global
Unichip
Corp.
1,000
38,121
Hotai
Motor
Co.
Ltd.
1,020
20,621
Largan
Precision
Co.
Ltd.
1,000
75,929
Lite-On
Technology
Corp.
9,000
29,809
MediaTek,
Inc.
6,000
217,476
Mega
Financial
Holding
Co.
Ltd.
80,737
101,541
Nanya
Technology
Corp.
16,000
33,796
Novatek
Microelectronics
Corp.
2,000
36,809
Quanta
Computer,
Inc.
17,000
148,734
Realtek
Semiconductor
Corp.
1,000
17,404
Taishin
Financial
Holding
Co.
Ltd.
93,890
52,661
Taiwan
Cement
Corp.
100,000
99,052
Taiwan
Mobile
Co.
Ltd.
14,000
44,620
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
102,000
2,450,919
Unimicron
Technology
Corp.
12,000
71,242
Uni-President
Enterprises
Corp.
39,000
93,102
United
Microelectronics
Corp.
75,000
121,862
Walsin
Lihwa
Corp.
23,000
26,878
Wan
Hai
Lines
Ltd.
28,000
38,496
Yang
Ming
Marine
Transport
Corp.
27,000
37,205
Yuanta
Financial
Holding
Co.
Ltd.
87,050
81,872
4,646,536
United
Kingdom
(
9
.7
%
)
3i
Group
plc
4,538
161,030
abrdn
plc
10,837
19,316
Admiral
Group
plc
936
33,545
Ashtead
Group
plc
2,681
191,014
Associated
British
Foods
plc
2,421
76,397
AstraZeneca
plc
6,983
941,936
Auto
Trader
Group
plc(b)
5,292
46,809
Aviva
plc
13,998
87,814
B&M
European
Value
Retail
SA
5,195
35,819
BAE
Systems
plc
19,092
325,472
Barratt
Developments
plc
6,415
38,541
Beazley
plc
1,369
11,509
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
International
Responsible
Index
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
United
Kingdom
(cont’d)
Berkeley
Group
Holdings
plc
659
$
39,609
BP
plc
85,841
537,530
BT
Group
plc
39,614
54,871
Bunzl
plc
1,855
71,425
Centrica
plc
16,142
26,030
Coca-Cola
Europacific
Partners
plc
1,537
107,513
Compass
Group
plc
11,347
332,981
ConvaTec
Group
plc(b)
9,910
35,854
Croda
International
plc
529
32,758
DCC
plc
1,201
87,389
Diageo
plc
11,930
440,890
Diploma
plc
581
27,318
DS
Smith
plc
7,609
38,131
Halma
plc
3,414
102,126
Hargreaves
Lansdown
plc
1,881
17,489
Howden
Joinery
Group
plc
3,003
34,400
HSBC
Holdings
plc
88,925
695,351
IMI
plc
467
10,707
Inchcape
plc
1,875
17,149
Informa
plc
9,693
101,778
InterContinental
Hotels
Group
plc
1,266
131,812
Intermediate
Capital
Group
plc
1,513
39,258
Intertek
Group
plc
1,081
68,074
J
Sainsbury
plc
11,216
38,312
JD
Sports
Fashion
plc
8,594
14,602
Johnson
Matthey
plc
2,056
46,465
Kingfisher
plc
12,427
39,152
Legal
&
General
Group
plc
31,844
102,337
Lloyds
Banking
Group
plc
334,472
218,697
London
Stock
Exchange
Group
plc
1,842
220,823
M&G
plc
14,006
39,013
Melrose
Industries
plc
8,227
69,943
National
Grid
plc
21,590
290,736
Next
plc
719
83,852
Pearson
plc
2,891
38,054
Phoenix
Group
Holdings
plc
4,596
32,083
Reckitt
Benckiser
Group
plc
3,871
220,639
RELX
plc
11,708
506,414
Rentokil
Initial
plc
15,376
91,622
Rightmove
plc
4,313
29,944
RS
GROUP
plc
808
7,419
Sage
Group
plc
(The)
5,867
93,792
Schroders
plc
4,073
19,377
Severn
Trent
plc
1,505
46,959
Smith
&
Nephew
plc
5,183
64,924
Smiths
Group
plc
2,202
45,661
Spirax-Sarco
Engineering
plc
446
56,623
SSE
plc
5,656
117,892
St.
James's
Place
plc
1,954
11,466
Standard
Chartered
plc
10,772
91,362
Taylor
Wimpey
plc
16,860
29,189
Tesco
plc
47,035
176,231
Unilever
plc
11,790
592,100
United
Utilities
Group
plc
4,321
56,168
Vodafone
Group
plc
76,329
67,939
Weir
Group
plc
(The)
1,594
40,715
Whitbread
plc
1,282
53,670
Wise
plc,
Class
A(a)
2,523
29,596
Shares
Value
WPP
plc
7,279
$
69,295
8,772,711
United
States
(
10
.0
%
)
Amcor
plc
4,315
41,036
Aon
plc,
Class
A
971
324,042
BRP,
Inc.
392
26,346
Chubb
Ltd.
1,410
365,373
Clarivate
plc(a)
2,562
19,036
CRH
plc
5,130
442,487
CSL
Ltd.
2,601
488,569
CyberArk
Software
Ltd.(a)
165
43,829
Ferguson
plc
1,153
251,850
Ferrovial
SE
2,446
96,897
Flex
Ltd.(a)
2,483
71,039
Garmin
Ltd.
642
95,574
GFL
Environmental,
Inc.
1,243
42,904
GSK
plc
21,668
467,680
Haleon
plc
30,885
129,960
Holcim
AG
3,268
296,286
ICON
plc(a)
428
143,787
James
Hardie
Industries
plc
CDI(a)
6,097
245,065
Janus
Henderson
Group
plc
537
17,662
Linde
plc
2,371
1,100,903
Nestle
SA
12,108
1,287,155
QIAGEN
NV(a)
1,107
47,590
Roche
Holding
AG
3,008
767,112
Sanofi
SA
5,693
559,262
Schneider
Electric
SE
2,603
589,376
Spotify
Technology
SA(a)
608
160,451
Stellantis
NV
10,271
292,237
Swiss
Re
AG
1,148
147,786
TE
Connectivity
Ltd.
1,725
250,539
Waste
Connections,
Inc.
1,638
281,870
9,093,703
Total
Common
Stocks
(Cost
$80,473,079)
90,216,564
No.
of
Warrants
Warrants
(0.0%)
(c)
Canada
(
0.0%
)(c)
Constellation
Software,
Inc.
Expires
03/31/2040
(a)
(
Cost
$0
)
97
498
Shares
Short-Term
Investment
(
0
.2
%
)
Investment
Company
(0.2%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(
See
Note
G
)
(Cost
$159,217)
159,217
159,217
Total
Investments
(
99
.5
%
)
(Cost
$
80,632,296
)
(d)
90,376,279
Other
Assets
in
Excess
of
Liabilities
(0.5%)
469,163
NET
ASSETS
(100.0%)
$90,845,442
The
country
classifications
used
for
financial
reporting
purposes
may
differ
from
the
classifications
determined
by
Calvert
Research
and
Management.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
International
Responsible
Index
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
(a)
Non-income
producing
security.
(b)
144A
security
Certain
conditions
for
public
sale
may
exist.
Unless
otherwise
noted,
these
securities
are
deemed
to
be
liquid.
(c)
Amount
is
less
than
0.05%.
(d)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$80,632,296.
The
aggregate
gross
unrealized
appreciation
is
$12,153,294
and
the
aggregate
gross
unrealized
depreciation
is
$2,409,311,
resulting
in
net
unrealized
appreciation
of
$9,743,983.
ADR
American
Depositary
Receipt
CDI
CREST
Depository
Interest
CVA
Dutch
Certification
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
67
.1
%
Banks
11
.8
Semiconductors
&
Semiconductor
Equipment
7
.7
Pharmaceuticals
7
.3
Insurance
6
.1
Total
Investments
100
.0
%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
International
Responsible
Index
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$80,473,079)
$
90,217,062
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$159,217)
159,217
Total
Investments
in
Securities,
at
Value
(Cost
$80,632,296)
90,376,279
Foreign
Currency,
at
Value
(Cost
$130,811)
130,687
Cash
787
Dividends
Receivable
351,554
Total
Assets
90,859,307
Liabilities:
Payable
for
Management
Fee
13,353
Payable
for
Dividends
to
Shareholders
512
Total
Liabilities
13,865
Net
Assets
$
90,845,442
Net
Assets
Consist
of:
Paid-in-Capital
$
81,532,052
Total
Distributable
Earnings
9,313,390
Net
Assets
$
90,845,442
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
1,600,000
Net
Asset
Value
Per
Share
$
56
.78
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
International
Responsible
Index
ETF
14
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Six
Months
Ended
March
31,
2024
Investment
Income:
Dividends
from
Securities
of
Unaffiliated
Issuers
(Net
of
$97,433
of
Foreign
Taxes
Withheld)
$
752,115
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
4,048
Total
Investment
Income
756,163
Expenses:
Management
Fee
(Note
B)
65,741
Total
Expenses
65,741
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(
122
)
Net
Expenses
65,619
Net
Investment
Income
690,544
Realized
Gain
(Loss):
Investments
Sold
(
233,459
)
Foreign
Currency
Translation
5,639
Net
Realized
Loss
(
227,820
)
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
11,925,155
Foreign
Currency
Translation
(
176
)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
11,924,979
Net
Realized
Loss
and
Change
in
Unrealized
Appreciation
(Depreciation)
11,697,159
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
12,387,703
Semi-Annual
Report
March
31,
2024
Calvert
International
Responsible
Index
ETF
15
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statements
of
Changes
in
Net
Assets
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
^
to
September
30,
2023
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
690,544
$
797,188
Net
Realized
Loss
(
227,820
)
(
437,654
)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
11,924,979
(
2,182,246
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
12,387,703
(
1,822,712
)
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(
574,190
)
(
677,411
)
Total
Dividends
and
Distributions
to
Shareholders
(
574,190
)
(
677,411
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Subscribed
In-Kind
20,941,702
40,590,350
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
20,941,702
60,590,350
Total
Increase
in
Net
Assets
32,755,215
58,090,227
Net
Assets:
Beginning
of
Period
58,090,227
End
of
Period
$
90,845,442
$
58,090,227
Capital
Share
Transactions:
Beginning
of
Period
1,200,000
Shares
Subscribed
400,000
Shares
Subscribed
In-Kind
400,000
800,000
Shares
Outstanding,
End
of
Period
Net
Increase
in
1,600,000
1,200,000
^
Commencement
of
Operations
(1)
Includes
$11,134,300
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Calvert
International
Responsible
Index
ETF
16
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
(1)
to
September
30,
2023
Net
Asset
Value,
Beginning
of
Period
$
48
.41‌
$
50
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
0
.49‌
1
.02‌
Net
Realized
and
Unrealized
Gain
(Loss)
8
.27‌
(
1
.82‌
)
Total
from
Investment
Operations
8
.76‌
(
0
.80‌
)
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
0
.39‌
)
(
0
.79‌
)
Net
Asset
Value,
End
of
Period
$
56
.78‌
$
48
.41‌
Total
Return
(3)
18
.15‌
%
(4)
(
1
.66‌
)
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$90,845
$58,090
Net
Assets,
End
of
Period
(Thousands)
$
90,845‌
$
58,090‌
Ratio
of
Expenses
0
.18‌
%
(5)
(6)
0
.18‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
1
.89‌
%
(5)
(6)
3
.01‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.00‌
%
(5)
(7)
0
.00‌
%
(5)
(7)
Portfolio
Turnover
Rate
3‌
%
(4)
(8)
13‌
%
(4)
(8)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(7)
Amount
is
less
than
0.005%.
(8)
In-kind
transactions
are
not
included
in
portfolio
turnover
calculations.
17
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
"Trust")
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust
is
authorized
to establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Act").
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Calvert
In-
ternational
Responsible
Index
ETF (the
"Fund"),
which
seeks
to
track
the
performance
of
the
Calvert
International
Responsi-
ble
Index.
The
Fund
is
diversified.
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
An
equity
portfolio
security
list-
ed
or
traded
on
an
exchange
is
valued
at
its
latest
reported
sales
price
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price),
and
if
there
were
no
sales
on
a
given
day
and
if
there
is
no
official
ex-
change
closing
price
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
relevant
ex-
changes.
If
only
bid
prices
are
available
then
the
latest
bid
price
may
be
used.
Listed
equity
securities
not
traded
on
the
valuation
date
with
no
reported
bid
and
asked
prices
available
on
the
exchange
are
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers.
In
cases
where
a
securi-
ty
is
traded
on
more
than
one
exchange,
the
security
is
valued
on
the
exchange
designated
as
the
primary
market;
(2)
all
other
equity
portfolio
securities
for
which
over-the-
counter
(“OTC”)
market
quotations
are
readily
available
are
valued
at
the
latest
reported
sales
price
(or
at
the
mar-
ket
official
closing
price
if
such
market
reports
an
official
closing
price),
and
if
there
was
no
trading
in
the
security
on
a
given
day
and
if
there
is
no
official
closing
price
from
relevant
markets
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
rel-
evant
markets.
An
unlisted
equity
security
that
does
not
trade
on
the
valuation
date
and
for
which
bid
and
asked
prices
from
the
relevant
markets
are
unavailable
is
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers;
(3)
certain
portfolio
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
whol-
ly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable brokers/dealers;
(4)
when
market
quo-
tations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circumstances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
market
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees;
(5)
foreign
exchange
transactions
("spot
contracts")
and
foreign
exchange
forward
contracts ("forward
contracts")
are
valued
daily
using
an
independent
pricing
vendor
at
the
spot
and
for-
ward
rates,
respectively,
as
of
the
close
of
the
NYSE; and
(6)
investments
in
mutual
funds,
including
the
Morgan
Stanley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
18
Morgan
Stanley
ETF
Trust
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
 Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Foreign
Currency
Translation
and
Foreign
Invest-
ments:
The
books
and
records
of
the
Fund
are
main-
tained
in
U.S.
dollars.
Foreign
currency
amounts
are
translated
into
U.S.
dollars
as
follows: 
investments,
other
assets
and
liabilities
at
the
prevail-
ing
rate
of
exchange
on
the
valuation
date;
investment
transactions
and
investment
income
at
the
prevailing
rates
of
exchange
on
the
dates
of
such
transactions. 
Although
the
net
assets
of
the
Fund
are
presented
at
the
foreign
exchange
rates
and
market
values
at
the
close
of
the
period,
the
Fund
does
not
isolate
that
portion
of
the
results
of
operations
arising
as
a
result
of
changes
in
the
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
the
market
prices
of
securities
held
at
period
end.
Similarly,
the
Fund
does
not
isolate
the
effect
of
changes
in
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
the
market
prices
of
securities
sold
during
the
period.
Accordingly,
realized
and
unre-
alized
foreign
currency
gains
(losses)
on
investments
in
securities
are
included
in
the
reported
net
realized
and
unrealized
gains
(losses)
on
investment
transactions
and
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:  
Common
Stocks
$
90,217‌
(1)
$
$
$
90,217
Warrants
—‌
(2)
(2)
Short-Term
Investment
Investment
Company
159‌
159
Total
Assets
$
90,376‌
$—
$—
$90,376
(1)
The
level
classification
by
major
category
of
investments
is
the
same
as
the
category
presentation
in
the
Portfolio
of
Investments.
(2)
Value
is
less
than
$500
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
balances.
However,
pursuant
to
U.S.
federal
income
tax
regulations,
gains
and
losses
from
certain
foreign
currency
transactions
and
the
foreign
currency
portion
of
gains
and
losses
realized
on
sales
and
maturities
of
foreign
de-
nominated
debt
securities
are
treated
as
ordinary
income
for
U.S.
federal
income
tax
purposes. 
Net
realized
gains
(losses)
on
foreign
currency
transac-
tions
represent
net
foreign
exchange
gains
(losses)
from
foreign
currency
forward
exchange
contracts,
disposition
of
foreign
currencies,
currency
gains
(losses)
realized
be-
tween
the
trade
and
settlement
dates
on
securities
transac-
tions,
and
the
difference
between
the
amount
of
invest-
ment
income
and
foreign
withholding
taxes
recorded
on
the
Fund’s
books
and
the
U.S.
dollar
equivalent
amounts
actually
received
or
paid.
The
change
in
unrealized
cur-
rency
gains
(losses)
on
foreign
currency
transactions
for
the
period
is
reflected
in
the
Statement
of
Operations. 
4.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
5.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
quarterly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
6.
Security
Transactions
and Income:
 Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
income
at
fair
value.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.18% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
.
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 100,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Partici-
pant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
20
Morgan
Stanley
ETF
Trust
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statements
of
Changes
in
Net
Assets.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the six
months
ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $3,695,327
and
$1,850,423,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
for
the
six
months
ended
March
31,
2024. Purchase
and
Sales
related
to
In-Kind
transactions
were
$18,990,458 and
$0 for
the six
months ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
investment
in
the
Liquidity
Fund.
For
the
six
months ended
March
31,
2024, management
fees
paid
were
reduced
by $122 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
six
months ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
The
tax
year
ended
September
30,
2023 remains
subject
to
examination
by
taxing
authorities.
The
tax
character
of
distributions
paid
may
differ
from
the
character
of
distributions
shown
for
GAAP
purposes
due
to
short-term
capital
gains
being
treated
as
ordinary
income
for
tax
purposes.
The
tax
character
of
distributions
paid
during
fiscal
year 2023
was
as
follows: 
Affiliated
Investment
Company
Value
September
30,
2023
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
156
$
1,232
$
1,229
$
4
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
159
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
21
Morgan
Stanley
ETF
Trust
The
amount
and
character
of
income
and
gains
to
be
distrib-
uted
are
determined
in
accordance
with
income
tax
regulations
which
may
differ
from
GAAP.
These
book/tax
differences
are
either
considered
temporary
or
permanent
in
nature. 
Temporary
differences
are
attributable
to
differing
book
and
tax
treatments
for
the
timing
of
the
recognition
of
gains
(loss-
es)
on
certain
investment
transactions
and
the
timing
of
the
deductibility
of
certain
expenses. 
The
Fund
had
no
permanent
differences
causing
reclassifica-
tions
among
the
components
of
net
assets
for
the
year ended
September
30,
2023. 
At
September
30,
2023 ,
the
components
of
distributable
earn-
ings
for
the
Fund
on
a
tax
basis
were
as
follows: 
At
September
30,
2023,
the
Fund
had
available
for
fed-
eral
income
tax
purposes
unused
short-term
capital
losses
of $418,624 that
do
not
have
an
expiration
date. 
To
the
extent
that
capital
loss
carryforwards
are
used
to
offset
any
future
capital
gains
realized,
no
capital
gains
tax
liability
will
be
incurred
by
the
Fund
for
gains
realized
and
not
distrib-
uted.
To
the
extent
that
capital
gains
are
offset,
such
gains
will
not
be
distributed
to
the
shareholders. 
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principle
risks
include,
but
are
not
limited
to,
the
following:
Tracking
Error
Risk:
Tracking
error
risk
refers
to
the
risk
that
the
Fund’s
performance
may
not
match
or
correlate
to
that
of
the
index
it
attempts
to
track,
either
on
a
daily
or
aggregate
basis.
Because
the
Fund
uses
a
representative
sampling
index-
ing
strategy,
it
can
be
expected
to
have
a
larger
tracking
error
than
if
it
used
a
replication
indexing
strategy.
Tracking
error
may
occur
because
of
transaction
costs,
the
Fund’s
holding
of
cash,
differences
in
accrual
of
dividends,
changes
to
the
index
or
the
need
to
meet
new
or
existing
regulatory
requirements.
Factors
such
as
Fund
expenses,
imperfect
correlation
between
the
Fund’s
investments
and
the
index,
rounding
of
share
prices,
changes
to
the
composition
of
the
index,
regulatory
policies,
limitations
on
Fund
investments
imposed
by
Fund
diversifica-
tion
and/or
concentration
policies,
high
portfolio
turnover
rate
2023
Distributions
Paid
From:
Ordinary
Long-Term
Income
Capital
Gain
$677,411
$–
Undistributed
Undistributed
Ordinary
Long-Term
Income
Capital
Gain
$173,428
$–
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
22
Morgan
Stanley
ETF
Trust
and
the
use
of
leverage
all
contribute
to
tracking
error.
Unlike
the
Fund,
the
returns
of
the
index
are
not
reduced
by
invest-
ment
and
other
operating
expenses,
including
the
trading
costs
associated
with
implementing
changes
to
its
portfolio
of
invest-
ments.
Tracking
error
risk
may
cause
the
Fund’s
performance
to
be
less
than
expected.
Tracking
error
risk
may
be
heightened
during
times
of
market
volatility,
unusual
market
conditions
or
other
abnormal
circumstances.
The
Fund
may
be
required
to
deviate
its
investments
from
the
securities
and
relative
weight-
ings
of
the
index
to
comply
with
applicable
laws
and
regula-
tions
or
because
of
market
restrictions
or
other
legal
reasons,
including
regulatory
limits
or
other
restrictions
on
securities
that
may
be
purchased
by
the
Adviser
and
its
affiliates.
Index
Related
Risk:
The
Fund’s
return
may
not
track
the
return
of
the
index
for
a
number
of
reasons
and
therefore
may
not
achieve
its
investment
objective.
For
example,
the
Fund
incurs
a
number
of
operating
expenses
not
applicable
to
the
index,
and
incurs
costs
in
buying
and
selling
securities,
espe-
cially
when
rebalancing
the
Fund’s
securities
holdings
to
reflect
changes
in
the
composition
of
the
index.
In
addition,
the
Fund’s
return
may
differ
from
the
return
of
the
index
because
of,
among
other
things,
pricing
differences
and
the
inability
to
purchase
certain
securities
included
in
the
index
due
to
regu-
latory
or
other
restrictions.
In
addition,
because
the
Fund
uses
a
representative
sampling
approach,
the
Fund
can
be
expected
to
be
less
correlated
with
the
return
of
the
index
as
when
a
fund
purchases
all
of
the
securities
in
an
index
in
the
proportions
in
which
they
are
rep-
resented
in
the
index.
Errors
in
the
construction
or
calculation
of
the
index
may
occur
from
time
to
time.
Any
such
errors
may
not
be
identified
and
corrected
by
the
index
provider
for
some
period
of
time,
which
may
have
an
adverse
impact
on
the
Fund
and
its
shareholders.
The
risk
that
the
Fund
may
not
track
the
performance
of
the
index
may
be
heightened
during
times
of
increased
market
volatility
or
other
unusual
market
conditions. 
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
To
the
extent
that
these
inter-
mediaries
exit
the
business
or
are
unable
to
or
choose
not
to
proceed
with
creation
and/or
redemption
orders
with
respect
to
the
Fund,
such
as
during
periods
of
market
stress,
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.
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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.
Large
Shareholder
Transaction
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
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
negative-
ly
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
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
23
Morgan
Stanley
ETF
Trust
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
circumstanc-
es,
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.
24
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
25
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
The
Adviser
has
engaged
Calvert
to
provide
proxy
voting
services
with
respect
to
the
Trust.
The
Adviser’s
Proxy
Voting
Policy
speci-
fies
that
each
Fund
will
follow
Calvert’s
Proxy
Voting
Policies
and
Procedures
and
Global
Proxy
Voting
Guidelines.
When
available,
the
Trust’s
proxy
voting
record
for
the
most
recent
12-month
period
ending
June
30,
as
filed
with
the
SEC,
will
be
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
will
also
be
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
26
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
27
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
28
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
29
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
ETFCALINTLRISAN
6598478
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Calvert
Ultra-Short
Investment
Grade
ETF
NYSE
Arca:
CVSB
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
10
Statement
of
Operations
....................................................................................
11
Statements
of
Changes
in
Net
Assets
.......................................................................
12
Financial
Highlights
.........................................................................................
13
Notes
to
Financial
Statements
...............................................................................
14
Liquidity
Risk
Management
Program
.........................................................................
20
Important
Notices
..........................................................................................
21
U.S.
Customer
Privacy
Notice
...............................................................................
22
Trustees
and
Officers
Information
...........................................................................
25
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Calvert
Ultra-Short
Investment
Grade
ETF (the
“Fund”)
performed
during
the
latest
six-month
period.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Calvert
Ultra-Short
Investment
Grade
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
six-month
period
ended
March
31,
2024 and
held
for
the
entire
six-month
period.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(
10/1/23
)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Calvert
Ultra-Short
Investment
Grade
ETF
$1,000.00
$1,034.90
$1,023.80
$1.22
$1.21
0.24%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
183/366
(to
reflect
the
most
recent
one-half
year
period).
**
Annualized.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Calvert
Ultra-Short
Investment
Grade
ETF
Morgan
Stanley
ETF
Trust
*
Cumulative
Return
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im
.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Bloomberg
U.S.
Universal
Index
(1)
and
the
Bloomberg
9-12
Months
Short
Treasury
Index
(2)
Period
Ended
March
31,
2024
Total
Returns
Average
Annual
Six
Months
*
One
Year
Since
Inception
(3)
Calvert
Ultra-Short
Investment
Grade
ETF
-
NAV
(4)
3.49%
6.53%
6.11%
Calvert
Ultra-Short
Investment
Grade
ETF
-
Market
Price
(4)
3.63%
6.64%
6.22%
Bloomberg
U.S.
Universal
Index
6.33%
2.67%
2.45%
Bloomberg
9-12
Months
Short
Treasury
Index
2.75%
4.71%
4.82%
(1)
The
Bloomberg
U.S.
Universal
Index
represents
the
union
of
the
US
Aggregate
Index,
US
Corporate
High
Yield
Index,
Investment
Grade
144A
Index,
Eurodollar
Index,
US
Emerging
Markets
Index,
and
the
non-Employee
Retirement
Income
Security
Act
of
1974
(non-ERISA)
eligible
portion
of
the
CMBS
Index.
The
index
covers
U.S.
dollar-denominated,
taxable
bonds
that
are
rated
either
investment
grade
or
high-yield.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
The
Fund’s
primary
benchmark
index
was
changed
from
the
Bloomberg
9-12
Months
Short
Treasury
Index
to
the
Bloomberg
U.S.
Universal
Index
to
comply
with
the
regulation
that
requires
the
Fund’s
primary
benchmark
to
represent
the
overall
applicable
market.
(2)
The
Bloomberg
9-12
Months
Short
Treasury
Index
measures
the
performance
of
U.S
Treasury
bills,
notes,
and
bonds
with
a
maturity
between
nine
and
twelve
months.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
(3)
For
comparative
purposes,
average
annual
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(4)
Commenced
operations
on
January
30,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Calvert
Ultra-Short
Investment
Grade
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Fixed
Income
Securities
(90.2%)
Asset-Backed
Securities
(
13.0%
)
Amur
Equipment
Finance
Receivables
XII
LLC,
2023-1A
6.09%,
12/20/29(a)
$
199,459‌
$
200,776‌
Avant
Loans
Funding
Trust,
2021-REV1
1.64%,
7/15/30(a)
440,000‌
437,626‌
CarNow
Auto
Receivables
Trust,
2023-2A
7.38%,
1/15/26(a)
120,243‌
120,464‌
Conn's
Receivables
Funding
LLC,
2023-A
8.01%,
1/17/28(a)
153,059‌
153,474‌
2024-A
7.05%,
1/16/29(a)
511,223‌
512,123‌
Dell
Equipment
Finance
Trust,
2023-2
5.84%,
1/22/29(a)
95,838‌
95,928‌
DLLST
LLC,
2024-1A
5.33%,
1/20/26(a)
130,000‌
129,765‌
Driven
Brands
Funding
LLC,
2018-1A
4.74%,
4/20/48(a)
235,625‌
231,471‌
FHF
Issuer
Trust,
2023-2A
6.79%,
10/15/29(a)
223,055‌
225,284‌
GLS
Auto
Select
Receivables
Trust,
2024-1A
5.24%,
3/15/30(a)
150,000‌
149,549‌
GM
Financial
Automobile
Leasing
Trust,
2023-2
5.44%,
10/20/25
31,832‌
31,817‌
GM
Financial
Consumer
Automobile
Receivables
Trust,
2023-4
5.89%,
11/16/26
150,000‌
150,384‌
Hyundai
Auto
Lease
Securitization
Trust,
2023-B
5.47%,
9/15/25(a)
112,515‌
112,469‌
J.P.
Morgan
Mortgage
Trust,
2023-HE2
SOFR30A
+
1.70%,
7.02%,
3/25/54(a)(b)
111,333‌
112,279‌
LAD
Auto
Receivables
Trust,
2023-1A
5.68%,
10/15/26(a)
76,950‌
76,913‌
2023-2A
5.93%,
6/15/27(a)
191,541‌
191,756‌
2023-3A
6.09%,
6/15/26(a)
139,049‌
139,169‌
Lendbuzz
Securitization
Trust,
2024-1A
6.19%,
8/15/29(a)
165,000‌
164,850‌
Marlette
Funding
Trust,
2020-1A
3.54%,
3/15/30(a)
53,830‌
53,555‌
2023-1A
6.07%,
4/15/33(a)
63,480‌
63,491‌
Face
Amount
Value
2023-3A
6.49%,
9/15/33(a)
$
281,977‌
$
282,368‌
Newtek
Small
Business
Loan
Trust,
2023-1
US
Prime
Rate
-
0.50%,
8.00%,
7/25/50(a)(b)
128,893‌
128,698‌
Octane
Receivables
Trust,
2023-1A
5.87%,
5/21/29(a)
67,830‌
67,910‌
Oportun
Issuance
Trust,
2024-1A
6.33%,
4/8/31(a)
327,052‌
327,204‌
Oscar
US
Funding
XIII
LLC,
2021-2A
0.86%,
9/10/25(a)
36,988‌
36,715‌
Oscar
US
Funding
XV
LLC,
2023-1A
6.07%,
9/10/26(a)
378,000‌
378,674‌
Prodigy
Finance
DAC,
2021-1A
CME
Term
SOFR
1
Month
+
1.36%,
6.69%,
7/25/51(a)(b)
709,871‌
705,176‌
2021-1A
CME
Term
SOFR
1
Month
+
2.61%,
7.94%,
7/25/51(a)(b)
120,034‌
121,057‌
Prosper
Marketplace
Issuance
Trust,
2023-1A
7.06%,
7/16/29(a)
150,508‌
151,029‌
Reach
ABS
Trust,
2023-1A
7.05%,
2/18/31(a)
94,268‌
94,538‌
SFS
Auto
Receivables
Securitization
Trust,
2024-1A
5.35%,
6/21/27(a)
140,000‌
139,823‌
SoFi
Consumer
Loan
Program
Trust,
2023-1S
5.81%,
5/15/31(a)
27,684‌
27,671‌
Theorem
Funding
Trust,
2023-1A
7.58%,
4/15/29(a)
52,797‌
53,209‌
Upstart
Securitization
Trust,
2021-5
1.31%,
11/20/31(a)
15,044‌
15,004‌
Vantage
Data
Centers
Issuer
LLC,
2019-1A
3.19%,
7/15/44(a)
665,567‌
659,364‌
6,541,583
Commercial
Mortgage-Backed
Securities
(
12.1%
)
BPR
Trust
CME
Term
SOFR
1
Month
+
3.00%,
8.33%,
5/15/39(a)(b)
150,000‌
151,183‌
BX
Commercial
Mortgage
Trust
CME
Term
SOFR
1
Month
+
1.06%,
6.39%,
9/15/36(a)(b)
425,000‌
421,432‌
CAMB
Commercial
Mortgage
Trust
CME
Term
SOFR
1
Month
+
1.55%,
6.87%,
12/15/37(a)(b)
286,543‌
287,036‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
Ultra-Short
Investment
Grade
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Commercial
Mortgage-Backed
Securities
(12.1%)
(cont’d)
CME
Term
SOFR
1
Month
+
2.05%,
7.37%,
12/15/37(a)(b)
$
288,000‌
$
288,402‌
Connecticut
Avenue
Securities
Trust
SOFR30A
+
2.95%,
8.27%,
6/25/42(a)(b)
363,779‌
375,058‌
CSMC
Trust
CME
Term
SOFR
1
Month
+
3.14%,
8.47%,
9/9/24(a)(b)
500,000‌
503,120‌
Extended
Stay
America
Trust
CME
Term
SOFR
1
Month
+
1.19%,
6.52%,
7/15/38(a)(b)
502,841‌
504,038‌
CME
Term
SOFR
1
Month
+
1.49%,
6.82%,
7/15/38(a)(b)
274,277‌
274,842‌
FHLMC
STACR
REMIC
Trust
SOFR30A
+
1.35%,
6.67%,
2/25/44(a)(b)
143,778‌
144,316‌
FHLMC,
REMIC
SOFR30A
+
0.51%,
5.83%,
1/15/42(b)
286,068‌
282,520‌
SOFR30A
+
0.66%,
5.98%,
4/15/36(b)
227,815‌
224,740‌
FNMA,
REMIC
SOFR30A
+
0.36%,
5.68%,
6/25/36(b)
222,288‌
219,587‌
SOFR30A
+
0.65%,
5.97%,
2/25/38(b)
236,071‌
234,249‌
Hawaii
Hotel
Trust
CME
Term
SOFR
1
Month
+
1.20%,
6.52%,
5/15/38(a)(b)
250,000‌
249,686‌
J.P.
Morgan
Chase
Commercial
Mortgage
Securities
Trust
CME
Term
SOFR
1
Month
+
1.16%,
6.49%,
4/15/38(a)(b)
100,000‌
99,865‌
Marlette
Funding
Trust
6.50%,
4/15/33(a)
260,000‌
261,814‌
Med
Trust
CME
Term
SOFR
1
Month
+
1.56%,
6.89%,
11/15/38(a)(b)
233,878‌
233,931‌
CME
Term
SOFR
1
Month
+
1.91%,
7.24%,
11/15/38(a)(b)
204,021‌
204,001‌
MHC
Commercial
Mortgage
Trust
CME
Term
SOFR
1
Month
+
0.92%,
6.24%,
4/15/38(a)(b)
461,382‌
460,333‌
ORL
Trust
CME
Term
SOFR
1
Month
+
2.35%,
7.68%,
10/19/36(a)(b)
100,000‌
100,750‌
Radnor
RE
Ltd.
SOFR30A
+
1.85%,
7.17%,
11/25/31(a)(b)
88,542‌
88,757‌
Reach
Abs
Trust
6.30%,
2/18/31(a)
208,643‌
209,596‌
VMC
Finance
LLC
CME
Term
SOFR
1
Month
+
1.76%,
7.09%,
1/18/37(a)(b)
255,464‌
252,636‌
6,071,892
Face
Amount
Value
Corporate
Bonds
(
53.3%
)
Automobiles
(1.7%)
General
Motors
Co.
6.13%,
10/1/25
$
225,000‌
$
226,989‌
Hyundai
Capital
America
5.80%,
6/26/25(a)
246,000‌
246,647‌
6.69%,
11/3/25(a)(b)
150,000‌
151,105‌
Volkswagen
Group
of
America
Finance
LLC
6.17%,
3/20/26(a)(b)
250,000‌
250,230‌
874,971
Banks
(20.3%)
Banco
Bilbao
Vizcaya
Argentaria
SA
5.86%,
9/14/26(b)
200,000‌
200,365‌
Banco
Santander
SA
5.15%,
8/18/25
200,000‌
198,664‌
Bank
of
America
Corp.
2.46%,
10/22/25(b)
1,300,000‌
1,276,815‌
3.84%,
4/25/25(b)
290,000‌
289,606‌
Bank
of
Ireland
Group
plc
6.25%,
9/16/26(a)(b)
600,000‌
603,950‌
BPCE
SA
5.15%,
7/21/24(a)
200,000‌
199,180‌
5.95%,
1/14/25(a)(b)
500,000‌
500,872‌
Citigroup,
Inc.
3.35%,
4/24/25(b)
450,000‌
449,260‌
6.04%,
5/1/25(b)
625,000‌
625,271‌
6.07%,
1/25/26(b)
200,000‌
200,267‌
Discover
Bank
2.45%,
9/12/24
250,000‌
246,327‌
HSBC
Holdings
plc
0.98%,
5/24/25(b)
470,000‌
466,401‌
ING
Groep
NV
3.55%,
4/9/24
450,000‌
449,810‌
Intesa
Sanpaolo
SpA
7.00%,
11/21/25(a)
350,000‌
356,617‌
JPMorgan
Chase
&
Co.
3.63%,
5/13/24
225,000‌
224,527‌
3.85%,
6/14/25
1,075,000‌
1,070,364‌
5.55%,
12/15/25(b)
225,000‌
224,898‌
KeyBank
NA
5.66%,
6/14/24(b)
250,000‌
249,833‌
KeyCorp
3.88%,
5/23/25(b)
45,000‌
44,799‌
National
Bank
of
Canada
5.25%,
1/17/25
250,000‌
249,470‌
PNC
Financial
Services
Group,
Inc.
(The)
5.67%,
10/28/25(b)
210,000‌
209,990‌
Royal
Bank
of
Canada
4.95%,
4/25/25
140,000‌
139,552‌
Santander
Holdings
USA,
Inc.
3.50%,
6/7/24
225,000‌
224,017‌
Societe
Generale
SA
5.52%,
1/19/28(a)(b)
225,000‌
223,544‌
Standard
Chartered
plc
1.82%,
11/23/25(a)(b)
240,000‌
233,525‌
Swedbank
AB
6.14%,
9/12/26(a)
218,000‌
221,990‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
Ultra-Short
Investment
Grade
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(53.3%)
(cont’d)
Truist
Financial
Corp.
5.75%,
6/9/25(b)
$
460,000‌
$
458,944‌
Wells
Fargo
&
Co.
2.41%,
10/30/25(b)
375,000‌
367,908‌
10,206,766
Biotechnology
(0.2%)
Amgen,
Inc.
5.25%,
3/2/25
80,000‌
79,780‌
Capital
Markets
(4.2%)
Bank
of
New
York
Mellon
(The)
5.79%,
3/13/26(b)
120,000‌
120,124‌
Credit
Suisse
AG
7.95%,
1/9/25
250,000‌
254,202‌
Goldman
Sachs
Group,
Inc.
(The)
3.50%,
1/23/25
240,000‌
236,204‌
5.87%,
10/21/24(b)
400,000‌
400,100‌
HAT
Holdings
I
LLC/HAT
Holdings
II
LLC
6.00%,
4/15/25(a)
175,000‌
174,436‌
Macquarie
Bank
Ltd.
5.39%,
12/7/26(a)
120,000‌
120,657‌
Stifel
Financial
Corp.
4.25%,
7/18/24
350,000‌
348,111‌
UBS
Group
AG
2.59%,
9/11/25(a)(b)
475,000‌
468,295‌
2,122,129
Chemicals
(0.8%)
Celanese
US
Holdings
LLC
6.05%,
3/15/25
225,000‌
225,489‌
Sherwin-Williams
Co.
(The)
3.13%,
6/1/24
175,000‌
174,195‌
399,684
Consumer
Finance
(5.7%)
AerCap
Ireland
Capital
DAC
1.65%,
10/29/24
500,000‌
487,890‌
Ally
Financial,
Inc.
3.88%,
5/21/24
384,000‌
382,861‌
Capital
One
Financial
Corp.
4.17%,
5/9/25(b)
985,000‌
983,010‌
Ford
Motor
Credit
Co.
LLC
5.13%,
6/16/25
475,000‌
470,886‌
General
Motors
Financial
Co.,
Inc.
3.95%,
4/13/24
200,000‌
199,832‌
6.70%,
4/7/25(b)
350,000‌
352,489‌
2,876,968
Diversified
Telecommunication
Services
(1.8%)
AT&T,
Inc.
6.76%,
6/12/24(b)
925,000‌
926,602‌
Electric
Utilities
(2.2%)
Enel
Finance
International
NV
2.65%,
9/10/24(a)
400,000‌
394,420‌
NextEra
Energy
Capital
Holdings,
Inc.
5.75%,
9/1/25
700,000‌
703,237‌
1,097,657
Face
Amount
Value
Electronic
Equipment,
Instruments
&
Components
(0.9%)
Amphenol
Corp.
4.75%,
3/30/26
$
40,000‌
$
39,719‌
TD
SYNNEX
Corp.
1.25%,
8/9/24
400,000‌
393,560‌
433,279
Entertainment
(1.2%)
Warnermedia
Holdings,
Inc.
6.41%,
3/15/26
589,000‌
589,012‌
Financial
Services
(2.0%)
Enact
Holdings,
Inc.
6.50%,
8/15/25(a)
500,000‌
500,405‌
Synchrony
Bank
5.40%,
8/22/25
500,000‌
495,581‌
995,986
Food
Products
(1.5%)
Campbell
Soup
Co.
5.30%,
3/20/26
250,000‌
250,292‌
JDE
Peet's
NV
0.80%,
9/24/24(a)
525,000‌
512,061‌
762,353
Ground
Transportation
(0.6%)
Penske
Truck
Leasing
Co.
LP
5.75%,
5/24/26(a)
120,000‌
120,906‌
SMBC
Aviation
Capital
Finance
DAC
3.55%,
4/15/24(a)
200,000‌
199,801‌
320,707
Health
Care
Providers
&
Services
(0.2%)
Centene
Corp.
4.25%,
12/15/27
100,000‌
95,423‌
Hotels,
Restaurants
&
Leisure
(0.6%)
Hyatt
Hotels
Corp.
1.80%,
10/1/24
325,000‌
318,210‌
Insurance
(1.3%)
GA
Global
Funding
Trust
0.80%,
9/13/24(a)
200,000‌
195,709‌
5.84%,
9/13/24(a)(b)
475,000‌
475,164‌
670,873
Leisure
Products
(0.6%)
Brunswick
Corp.
0.85%,
8/18/24
325,000‌
318,893‌
Machinery
(0.4%)
Daimler
Truck
Finance
North
America
LLC
6.40%,
4/5/24(a)(b)
225,000‌
225,015‌
Media
(0.3%)
Charter
Communications
Operating
LLC
4.91%,
7/23/25
150,000‌
148,215‌
Multi-Utilities
(0.5%)
Algonquin
Power
&
Utilities
Corp.
5.37%,
6/15/26(c)
260,000‌
258,670‌
Oil,
Gas
&
Consumable
Fuels
(0.5%)
Occidental
Petroleum
Corp.
6.95%,
7/1/24
225,000‌
225,481‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
Ultra-Short
Investment
Grade
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(53.3%)
(cont’d)
Passenger
Airlines
(1.2%)
Delta
Air
Lines,
Inc./SkyMiles
IP
Ltd.
4.50%,
10/20/25(a)
$
602,142‌
$
596,136‌
Professional
Services
(0.8%)
Concentrix
Corp.
6.65%,
8/2/26
420,000‌
423,376‌
Specialized
REITs
(1.0%)
EPR
Properties
4.50%,
4/1/25
500,000‌
492,698‌
Technology
Hardware,
Storage
&
Peripherals
(0.7%)
Hewlett
Packard
Enterprise
Co.
5.90%,
10/1/24
355,000‌
355,589‌
Textiles,
Apparel
&
Luxury
Goods
(0.5%)
Tapestry,
Inc.
7.05%,
11/27/25
225,000‌
229,730‌
Trading
Companies
&
Distributors
(0.9%)
Aviation
Capital
Group
LLC
5.50%,
12/15/24(a)
464,000‌
462,336‌
Wireless
Telecommunication
Services
(0.7%)
Sprint
LLC
7.13%,
6/15/24
340,000‌
340,795‌
26,847,334
U.S.
Government
and
Agency
Securities
(
11.8%
)
U.S.
Treasury
Bills
0.00%,
12/26/24
2,500,000‌
2,409,810‌
0.00%,
1/23/25
2,900,000‌
2,785,627‌
4.63%,
2/28/25
750,000‌
746,986‌
5,942,423
Total
Fixed
Income
Securities
(Cost
$45,188,759)
45,403,232
Shares
Short-Term
Investments
(9.7%)
Investment
Company
(
1.0%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(See
Note
G)
(Cost
$481,022)
481,022
481,022
Face
Amount
Commercial
Paper
(
8.7%
)
Australia
&
New
Zealand
Banking
Group
Ltd.
5.67%,
5/15/24(a)
$
500,000‌
496,451‌
Brookfield
Renewable
Energy
LP
5.87%,
5/7/24
485,000‌
482,001‌
Canadian
Imperial
Bank
of
Commerce
5.84%,
5/14/24
500,000‌
496,526‌
Crown
Castle,
Inc.
5.65%,
4/23/24
250,000‌
248,953‌
DNB
Bank
ASA
5.81%,
7/1/24
500,000‌
493,028‌
Face
Amount
Value
Harley-Davidson
Financial
Services,
Inc.
6.08%,
5/2/24
$
220,000‌
$
218,777‌
HSBC
USA,
Inc.
5.58%,
7/23/24
250,000‌
245,582‌
HSBC
USA,
Inc.
6.36%,
9/9/24(a)
250,000‌
243,698‌
International
Flavors
&
Fragrances,
Inc.
5.43%,
4/2/24
230,000‌
229,827‌
Lloyds
Bank
plc
5.79%,
4/1/24
500,000‌
499,705‌
Nutrien
Ltd.
5.62%,
5/28/24(a)
470,000‌
465,577‌
Rogers
Communications,
Inc.
5.57%,
5/2/24(a)
250,000‌
248,648‌
Total
Commercial
Paper
(Cost
$4,369,415)
4,368,773
Total
Short-Term
Investments
(Cost
$4,850,437)
4,849,795
Total
Investments
(99.9%)
(Cost
$50,039,196)
(d)
50,253,027
Other
Assets
in
Excess
of
Liabilities
(0.1%)
57,568
Net
Assets
(100.0%)
$50,310,595
(a)
144A
security
Certain
conditions
for
public
sale
may
exist.
Unless
otherwise
noted,
these
securities
are
deemed
to
be
liquid.
(b)
Floating
or
variable
rate
securities:
The
rates
disclosed
are
as
of
March
31,
2024.
For
securities
based
on
a
published
reference
rate
and
spread,
the
reference
rate
and
spread
are
indicated
in
the
description
in
the
Portfolio
of
Investments.
Certain
variable
rate
securities
may
not
be
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.
These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description
in
the
Portfolio
of
Investments.
(c)
Multi-step
Coupon
rate
changes
in
predetermined
increments
to
maturity.
Rate
disclosed
is
as
of
March
31,
2024.
Maturity
date
disclosed
is
the
ultimate
maturity
date.
(d)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$50,039,196.
The
aggregate
gross
unrealized
appreciation
is
$229,930
and
the
aggregate
gross
unrealized
depreciation
is
$16,099,
resulting
in
net
unrealized
appreciation
of
$213,831.
CME
Chicago
Mercantile
Exchange
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
REIT
Real
Estate
Investment
Trust
REMIC
Real
Estate
Mortgage
Investment
Conduit
SOFR
Secured
Overnight
Financing
Rate
SOFR30A
Secured
Overnight
Financing
Rate
30
Day
Average
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
Ultra-Short
Investment
Grade
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
27.4‌
%
Banks
20.3‌
Asset-Backed
Securities
13.0‌
Commercial
Mortgage-Backed
Securities
12.1‌
U.S.
Government
and
Agency
Securities
11.8‌
Short-Term
Investments
9.7‌
Consumer
Finance
5.7‌
Total
Investments
100.0‌%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
Ultra-Short
Investment
Grade
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$49,558,174)
$
49,772,005
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$481,022)
481,022
Total
Investments
in
Securities,
at
Value
(Cost
$50,039,196)
50,253,027
Receivable
for
Investments
Sold
183,414
Interest
Receivable
312,920
Dividends
Receivable
4,438
Total
Assets
50,753,799
Liabilities:
Payable
for
Investments
Purchased
201,667
Payable
for
Management
Fee
9,718
Payable
for
Dividends
to
Shareholders
227,580
Payable
to
Bank
4,239
Total
Liabilities
443,204
Net
Assets
$
50,310,595
Net
Assets
Consist
of:
Paid-in-Capital
$
50,060,653
Total
Distributable
Earnings
249,942
Net
Assets
$
50,310,595
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
1,000,000
Net
Asset
Value
Per
Share
$
50
.31
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
Ultra-Short
Investment
Grade
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Six
Months
Ended
March
31,
2024
Investment
Income:
Interest
from
Securities
of
Unaffiliated
Issuers
$
1,364,193
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
31,463
Total
Investment
Income
1,395,656
Expenses:
Management
Fee
(Note
B)
56,190
Total
Expenses
56,190
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(
914
)
Net
Expenses
55,276
Net
Investment
Income
1,340,380
Realized
Gain
(Loss):
Investments
Sold
59,005
Futures
Contracts
(
398
)
Net
Realized
Gain
58,607
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
208,918
Futures
Contracts
641
Net
Change
in
Unrealized
Appreciation
(Depreciation)
209,559
Net
Realized
Gain
and
Change
in
Unrealized
Appreciation
(Depreciation)
268,166
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
1,608,546
Semi-Annual
Report
March
31,
2024
Calvert
Ultra-Short
Investment
Grade
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statements
of
Changes
in
Net
Assets
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
^
to
September
30,
2023
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
1,340,380
$
1,326,851
Net
Realized
Gain
(Loss)
58,607
(
33,087
)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
209,559
4,272
Net
Increase
in
Net
Assets
Resulting
from
Operations
1,608,546
1,298,036
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(
1,353,625
)
(
1,303,015
)
Total
Dividends
and
Distributions
to
Shareholders
(
1,353,625
)
(
1,303,015
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Subscribed
In-Kind
3,780,315
26,280,338
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
3,780,315
46,280,338
Total
Increase
in
Net
Assets
4,035,236
46,275,359
Net
Assets:
Beginning
of
Period
46,275,359
End
of
Period
$
50,310,595
$
46,275,359
Capital
Share
Transactions:
Beginning
of
Period
925,000
Shares
Subscribed
400,000
Shares
Subscribed
In-Kind
75,000
525,000
Shares
Outstanding,
End
of
Period
Net
Increase
in
1,000,000
925,000
^
Commencement
of
Operations
(1)
Total
consists
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Calvert
Ultra-Short
Investment
Grade
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
(1)
to
September
30,
2023
Net
Asset
Value,
Beginning
of
Period
$
50
.03‌
$
50
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
1
.44‌
1
.82‌
Net
Realized
and
Unrealized
Gain
(Loss)
0
.28‌
(
0
.07‌
)
Total
from
Investment
Operations
1
.72‌
1
.75‌
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
1
.44‌
)
(
1
.72‌
)
Net
Asset
Value,
End
of
Period
$
50
.31‌
$
50
.03‌
Total
Return
(3)
3
.49‌
%
(4)
3
.54‌
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$50,311
$46,275
Net
Assets,
End
of
Period
(Thousands)
$
50,311‌
$
46,275‌
Ratio
of
Expenses
0
.24‌
%
(5)
(6)
0
.24‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
5
.72‌
%
(5)
(6)
5
.42‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.00‌
%
(5)
(7)
0
.00‌
%
(5)
(7)
Portfolio
Turnover
Rate
34‌
%
(4)
54‌
%
(4)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(7)
Amount
is
less
than
0.005%.
14
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
"Trust")
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to
establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Act").
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Calvert
Ultra-Short
Investment
Grade
ETF (the
"Fund"),
which
seeks
to
maximize
income,
to
the
extent
consistent
with
preserva-
tion
of
capital,
through
investment
in
short-term
bonds
and
income-producing
securities.
The
Fund
is
diversified. 
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteris-
tics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
bro-
kers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable
brokers/dealers;
(2)
futures
are
valued
at
the
settlement
price
on
the
exchange
on
which
they
trade
or,
if
a
settlement
price
is
unavail-
able,
at
the
last
sale
price
on
the
exchange;
(3)
when
market
quotations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circumstances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
market
value,
portfolio
securities
are
valued
at
their
fair
value
as
deter-
mined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees;
(4)
invest-
ments
in
mutual
funds,
including
the
Morgan
Stanley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
15
Morgan
Stanley
ETF
Trust
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
 Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
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.
Derivatives
are
financial
instruments
whose
value
is
based,
in
part,
on
the
value
of
an
underlying
asset,
interest
rate,
index
or
financial
instrument.
Prevail-
ing
interest
rates
and
volatility
levels,
among
other
things,
also
affect
the
value
of
derivative
instruments.
A
deriva-
tive
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,
instru-
ments,
indices
or
interest
rates
to
which
the
derivative
instrument
relates,
risks
that
the
transactions
may
not
be
liquid
and
risks
arising
from
margin
requirements,
risks
arising
from
mispricing
or
valuation
complexity
and
operational
and
legal
risks. 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
port-
folio
investments.
All
of
the
Fund’s
holdings,
including
derivative
instruments,
are
marked-to-market
each
day
with
the
change
in
value
reflected
in
unrealized
appreci-
ation
(depreciation).
Upon
disposition,
a
realized
gain
or
loss
is
recognized.
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
transac-
tions
may
cause
the
Fund
to
liquidate
portfolio
positions
when
it
may
not
be
advantageous
to
do
so
to
satisfy
its
obligations
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
objectives,
there
is
no
assurance
that
the
use
of
derivatives
will
achieve
this
result.
Following
is
a
description
of
the
derivative
instruments
and
techniques
that
the
Fund
used
during
the
period
and
their
associated
risks:
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
specif-
ic
price
at
a
specific
future
time.
The
value
of
a
futures
contract
tends
to
increase
and
decrease
in
tandem
with
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:
Fixed
Income
Securities
Asset-Backed
Securities
$
—‌
$
6,542‌
$
—‌
$
6,542‌
Commercial
Mortgage-Backed
Securities
—‌
6,072‌
—‌
6,072‌
Corporate
Bonds
—‌
26,847‌
—‌
26,847‌
U.S.
Government
and
Agency
Securities
—‌
5,942‌
—‌
5,942‌
—‌
—‌
—‌
—‌
Total
Fixed
Income
Securities
—‌
45,403‌
—‌
45,403‌
—‌
—‌
—‌
—‌
Short-Term
Investments
Investment
Company
481
—‌
—‌
481‌
Commercial
Paper
4,369‌
—‌
4,369‌
Total
Short-Term
Investments
481‌
4,369‌
—‌
4,850‌
Total
Assets
$481
$49,772‌
$—‌
$50,253‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
16
Morgan
Stanley
ETF
Trust
the
value
of
the
underlying
instrument.
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.
During
the
period
the
futures
contract
is
open,
payments
are
received
from
or
made
to
the
broker
based
upon
chang-
es
in
the
value
of
the
contract
(the
variation
margin).
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
unsuc-
cessful
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
contract
at
any
particular
time.
FASB
ASC
815,
“Derivatives
and
Hedging”
(“ASC
815”),
is
intended
to
improve
financial
reporting
about
deriv-
ative
instruments
by
requiring
enhanced
disclosures
to
enable
investors
to
better
understand
how
and
why
the
Fund
uses
derivative
instruments,
how
these
derivative
instruments
are
accounted
for
and
their
effects
on
the
Fund’s
financial
position
and
results
of
operations.
The
following
tables
set
forth
by
primary
risk
exposure
the
Fund’s
realized
gains
(losses)
and
change
in
unrealized
appreciation
(depreciation)
by
type
of
derivative
contract
for
the
six
months
ended
March
31,
2024
in
accordance
with
ASC
815:
For
the
six
months
ended
March
31,
2024,
the
approx-
imate
average
monthly
amount
outstanding
for
each
derivative
type
is
as
follows:
4.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
5.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
monthly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
6.
Security
Transactions
and Income:
 Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
income
at
fair
value.
Interest
income
is
recog-
nized
on
the
accrual
basis
(except
where
collection
is
in
doubt)
net
of
applicable
withholding
taxes.
Discounts
are
accreted
and
premiums
are
amortized
over
the
life
of
the
respective
securities.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.24% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
Realized
Gain
(Loss)
Primary
Risk
Exposure
Derivative
Type
Value
Interest
Rate
Risk
Futures
Contracts
$(398)
Change
in
Unrealized
Appreciation
(Depreciation)
Primary
Risk
Exposure
Derivative
Type
Value
Interest
Rate
Risk
Futures
Contracts
$641
Futures
Contracts:
Average
monthly
notional
value
..................
202,566
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 25,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statements
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the six
months
ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $13,657,472
and
$9,505,411,
respectively.
For
the
six
months
ended
March
31,
2024,
purchases
and
sales
of
long-term
U.S
Government
securities
were
$229,818
and
$
1,249,451,
respectively. There
were
no
purchase
and
sales
related
to
In-Kind
transactions
for
the six
months ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
investment
in
the
Liquidity
Fund.
For
the
six
months ended
March
31,
2024, management
fees
paid
were
reduced
by $914 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
six
months ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
Affiliated
Investment
Company
Value
September
30,
2023
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
639
$
15,432
$
15,590
$
31
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
481
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
18
Morgan
Stanley
ETF
Trust
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
The
tax
year
ended
September
30,
2023 remains
subject
to
examination
by
taxing
authorities.
The
tax
character
of
distributions
paid
may
differ
from
the
character
of
distributions
shown
for
GAAP
purposes
due
to
short-term
capital
gains
being
treated
as
ordinary
income
for
tax
purposes.
The
tax
character
of
distributions
paid
during
fiscal
year 2023
was
as
follows: 
The
amount
and
character
of
income
and
gains
to
be
distrib-
uted
are
determined
in
accordance
with
income
tax
regulations
which
may
differ
from
GAAP.
These
book/tax
differences
are
either
considered
temporary
or
permanent
in
nature. 
Temporary
differences
are
attributable
to
differing
book
and
tax
treatments
for
the
timing
of
the
recognition
of
gains
(loss-
es)
on
certain
investment
transactions
and
the
timing
of
the
deductibility
of
certain
expenses. 
The
Fund
had
no
permanent
differences
causing
reclassifica-
tions
among
the
components
of
net
assets
for
the
year ended
September
30,
2023. 
At
September
30,
2023,
the
components
of
distributable
earn-
ings
for
the
Fund
on
a
tax
basis
were
as
follows: 
At
September
30,
2023,
the
Fund
had
available
for
federal
income
tax
purposes
unused
short-term
capital
losses
of $49,
706 that
do
not
have
an
expiration
date. 
To
the
extent
that
capital
loss
carryforwards
are
used
to
offset
any
future
capital
gains
realized,
no
capital
gains
tax
liability
will
be
incurred
by
the
Fund
for
gains
realized
and
not
distrib-
uted.
To
the
extent
that
capital
gains
are
offset,
such
gains
will
not
be
distributed
to
the
shareholders. 
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
2023
Distributions
Paid
From:
Ordinary
Long-Term
Income
Capital
Gain
$1,303,015
$–
Undistributed
Undistributed
Ordinary
Long-Term
Income
Capital
Gain
$39,815
$–
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
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,
such
as
during
periods
of
market
stress,
and
no
other
authorized
participant
creates
or
redeems,
shares
may
trade
at
a
discount
to
NAV
and
possibly
face
trading
halts
and/
or
delisting.
Cash
Transactions
Risk:
Unlike
certain
ETFs,
the
Fund
may
effect
creations
and
redemptions
in
cash
or
partially
in
cash.
Therefore,
it
may
be
required
to
sell
portfolio
securities
and
subsequently
recognize
gains
on
such
sales
that
the
Fund
might
not
have
recognized
if
it
were
to
distribute
portfolio
securities
in-kind.
As
such,
investments
in
shares
may
be
less
tax-efficient
than
an
investment
in
an
ETF
that
distributes
portfolio
securities
entirely
in-kind. 
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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.
20
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
21
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
The
Adviser
has
engaged
Calvert
to
provide
proxy
voting
services
with
respect
to
the
Trust.
The
Adviser’s
Proxy
Voting
Policy
speci-
fies
that
each
Fund
will
follow
Calvert’s
Proxy
Voting
Policies
and
Procedures
and
Global
Proxy
Voting
Guidelines.
When
available,
the
Trust’s
proxy
voting
record
for
the
most
recent
12-month
period
ending
June
30,
as
filed
with
the
SEC,
will
be
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
will
also
be
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
22
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
23
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
24
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
25
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
ETFCALULTSHORTINVGRDSAN
6598532
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
NYSE
Arca:
CVLC
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
14
Statement
of
Operations
....................................................................................
15
Statements
of
Changes
in
Net
Assets
.......................................................................
16
Financial
Highlights
.........................................................................................
17
Notes
to
Financial
Statements
...............................................................................
18
Liquidity
Risk
Management
Program
.........................................................................
24
Important
Notices
..........................................................................................
25
U.S.
Customer
Privacy
Notice
...............................................................................
26
Trustees
and
Officers
Information
...........................................................................
29
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Calvert
US
Large-Cap
Core
Responsible
Index
ETF (the
“Fund”)
performed
during
the
latest
six-month
period.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
six-month
period
ended
March
31,
2024 and
held
for
the
entire
six-month
period.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(
10/1/23
)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
$1,000.00
$1,242.60
$1,024.25
$0.84
$0.76
0.15%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
183/366
(to
reflect
the
most
recent
one-half
year
period).
**
Annualized.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
Morgan
Stanley
ETF
Trust
*
Cumulative
Return
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im
.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Russell
1000
®
Index
(1)
and
the
Calvert
US
Large-Cap
Core
Responsible
Index
(2)
Period
Ended
March
31,
2024
Total
Returns
Average
Annual
Six
Months
*
One
Year
Since
Inception
(3)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
-
NAV
(4)
24.26%
29.65%
27.57%
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
-
Market
Price
(4)
24.12%
29.83%
27.65%
Russell
1000
®
Index
23.49%
29.87%
27.61%
Calvert
US
Large-Cap
Core
Responsible
Index
24.40%
29.91%
27.85%
(1)
The
Russell
1000
®
Index
is
an
unmanaged
index
of
1,000
U.S.
large-cap
stocks.
The
Russell
1000
®
Index
is
an
index
of
approximately
1,000
of
the
largest
U.S.
companies
based
on
a
combination
of
market
capitalization
and
current
index
membership.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
(2)
The
Calvert
US
Large-Cap
Core
Responsible
Index
(the
“Calvert
Index”)
is
composed
of
common
stocks
of
large
companies
that
operate
their
businesses
in
a
manner
consistent
with
the
Calvert
Principles
for
Responsible
Investment.
Large
companies
are
the
1,000
largest
publicly
traded
U.S.
companies
based
on
market
capitalization,
excluding
real
estate
investment
trusts
and
business
development
companies.
The
Calvert
Principles
for
Responsible
Investment
serve
as
a
framework
for
considering
environmental,
social
and
governance
factors
that
may
affect
investment
performance.
Stocks
are
weighted
in
the
Calvert
Index
based
on
their
float-adjusted
market
capitalization
within
the
relevant
sector,
subject
to
certain
prescribed
limits.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
(3)
For
comparative
purposes,
average
annual
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(4)
Commenced
operations
on
January
30,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Common
Stocks
(99.7%)
Aerospace
&
Defense
(0.2%)
Axon
Enterprise,
Inc.
(a)
772
$
241,543
Curtiss-Wright
Corp.
420
107,495
HEICO
Corp.
449
85,759
Hexcel
Corp.
791
57,624
Woodward,
Inc.
615
94,784
587,205
Air
Freight
&
Logistics
(0.6%)
CH
Robinson
Worldwide,
Inc.
911
69,364
Expeditors
International
of
Washington,
Inc.
1,070
130,080
FedEx
Corp.
1,800
521,532
GXO
Logistics,
Inc.
(a)
958
51,502
United
Parcel
Service,
Inc.,
Class
 B
5,654
840,354
1,612,832
Automobile
Components
(0.1%)
Aptiv
plc
(a)
2,202
175,389
Autoliv,
Inc.
658
79,243
BorgWarner,
Inc.
1,840
63,921
Lear
Corp.
461
66,790
Visteon
Corp.
(a)
218
25,639
410,982
Automobiles
(1.5%)
Ford
Motor
Co.
29,990
398,267
General
Motors
Co.
10,682
484,429
Harley-Davidson,
Inc.
1,074
46,977
Rivian
Automotive,
Inc.,
Class
 A
(a)
5,217
57,126
Tesla,
Inc.
(a)
19,033
3,345,811
Thor
Industries,
Inc.
415
48,696
4,381,306
Banks
(4.4%)
Bank
of
America
Corp.
54,272
2,057,994
Bank
OZK
946
43,005
BOK
Financial
Corp.
247
22,724
Citigroup,
Inc.
15,924
1,007,034
Citizens
Financial
Group,
Inc.
3,870
140,442
Columbia
Banking
System,
Inc.
1,814
35,101
Comerica,
Inc.
1,097
60,324
Commerce
Bancshares,
Inc.
1,098
58,414
Cullen/Frost
Bankers,
Inc.
518
58,311
East
West
Bancorp,
Inc.
1,166
92,242
Fifth
Third
Bancorp
5,641
209,902
First
Citizens
BancShares
,
Inc.,
Class
 A
97
158,595
First
Financial
Bankshares
,
Inc.
1,221
40,061
First
Horizon
Corp.
4,617
71,102
FNB
Corp.
3,124
44,048
Home
BancShares
,
Inc.
1,667
40,958
Huntington
Bancshares,
Inc.
11,926
166,368
JPMorgan
Chase
&
Co.
19,719
3,949,716
KeyCorp
7,803
123,365
M&T
Bank
Corp.
1,373
199,689
New
York
Community
Bancorp,
Inc.
6,032
19,423
Old
National
Bancorp
2,578
44,883
Pinnacle
Financial
Partners,
Inc.
625
53,675
PNC
Financial
Services
Group,
Inc.
(The)
3,308
534,573
Popular,
Inc.
606
53,383
Prosperity
Bancshares,
Inc.
784
51,572
Regions
Financial
Corp.
7,730
162,639
Shares
Value
SouthState
Corp.
658
$
55,950
Synovus
Financial
Corp.
1,263
50,596
Truist
Financial
Corp.
11,086
432,132
U.S.
Bancorp
12,955
579,088
United
Bankshares
,
Inc.
1,166
41,731
Valley
National
Bancorp
3,810
30,328
Webster
Financial
Corp.
1,425
72,347
Wells
Fargo
&
Co.
29,413
1,704,777
Western
Alliance
Bancorp
936
60,082
Wintrust
Financial
Corp.
521
54,387
Zions
Bancorp
NA
1,220
52,948
12,633,909
Beverages
(1.6%)
Celsius
Holdings,
Inc.
(a)
1,405
116,503
Coca-Cola
Co.
(The)
30,704
1,878,471
Coca-Cola
Consolidated,
Inc.
42
35,549
Keurig
Dr
Pepper,
Inc.
9,053
277,656
Monster
Beverage
Corp.
(a)
7,033
416,916
PepsiCo,
Inc.
10,926
1,912,159
4,637,254
Biotechnology
(2.5%)
AbbVie,
Inc.
13,178
2,399,714
ACADIA
Pharmaceuticals,
Inc.
(a)
936
17,307
Alkermes
plc
(a)
1,273
34,460
Alnylam
Pharmaceuticals,
Inc.
(a)
958
143,173
Amgen,
Inc.
4,009
1,139,839
Apellis
Pharmaceuticals,
Inc.
(a)
738
43,380
Arrowhead
Pharmaceuticals,
Inc.
(a)
792
22,651
Biogen,
Inc.
(a)
1,057
227,921
BioMarin
Pharmaceutical,
Inc.
(a)
1,417
123,761
Blueprint
Medicines
Corp.
(a)
461
43,730
Denali
Therapeutics,
Inc.
(a)
897
18,406
Exact
Sciences
Corp.
(a)
1,373
94,819
Exelixis
,
Inc.
(a)
2,330
55,291
Gilead
Sciences,
Inc.
9,336
683,862
Halozyme
Therapeutics,
Inc.
(a)
1,012
41,168
Incyte
Corp.
(a)
1,414
80,556
Ionis
Pharmaceuticals,
Inc.
(a)
1,081
46,861
Moderna,
Inc.
(a)
2,462
262,351
Neurocrine
Biosciences,
Inc.
(a)
730
100,682
Regeneron
Pharmaceuticals,
Inc.
(a)
781
751,705
Sarepta
Therapeutics,
Inc.
(a)
679
87,903
United
Therapeutics
Corp.
(a)
301
69,146
Vertex
Pharmaceuticals,
Inc.
(a)
1,931
807,177
7,295,863
Broadline
Retail
(3.8%)
Amazon.com,
Inc.
(a)
58,850
10,615,363
eBay,
Inc.
3,522
185,891
Etsy,
Inc.
(a)
815
56,007
Macy's,
Inc.
1,845
36,882
10,894,143
Building
Products
(1.2%)
AAON,
Inc.
766
67,484
Advanced
Drainage
Systems,
Inc.
740
127,458
Allegion
plc
963
129,726
AO
Smith
Corp.
1,353
121,039
AZEK
Co.,
Inc.
(The),
Class
 A
(a)
992
49,818
Carlisle
Cos.,
Inc.
876
343,260
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Building
Products
(cont’d)
Carrier
Global
Corp.
8,629
$
501,604
Fortune
Brands
Innovations,
Inc.
871
73,747
Johnson
Controls
International
plc
6,990
456,587
Lennox
International,
Inc.
352
172,043
Masco
Corp.
1,553
122,501
Owens
Corning
1,652
275,554
Simpson
Manufacturing
Co.,
Inc.
470
96,435
Trane
Technologies
plc
2,339
702,168
Trex
Co.,
Inc.
(a)
757
75,511
UFP
Industries,
Inc.
421
51,787
Zurn
Elkay
Water
Solutions
Corp.
1,006
33,671
3,400,393
Capital
Markets
(3.9%)
Affiliated
Managers
Group,
Inc.
276
46,222
Ameriprise
Financial,
Inc.
839
367,851
Ares
Management
Corp.,
Class
 A
1,278
169,948
Bank
of
New
York
Mellon
Corp.
(The)
6,213
357,993
BlackRock,
Inc.
1,230
1,025,451
Blackstone,
Inc.
5,938
780,075
Blue
Owl
Capital,
Inc.,
Class
 A
3,828
72,196
Carlyle
Group,
Inc.
(The)
1,599
75,009
Cboe
Global
Markets,
Inc.
874
160,580
Charles
Schwab
Corp.
(The)
12,344
892,965
CME
Group,
Inc.
2,989
643,502
Coinbase
Global,
Inc.,
Class
 A
(a)
1,425
377,796
Evercore,
Inc.,
Class
 A
295
56,814
FactSet
Research
Systems,
Inc.
306
139,043
Franklin
Resources,
Inc.
2,392
67,239
Goldman
Sachs
Group,
Inc.
(The)
2,703
1,129,016
Hamilton
Lane,
Inc.,
Class
 A
270
30,445
Houlihan
Lokey,
Inc.,
Class
 A
440
56,404
Interactive
Brokers
Group,
Inc.,
Class
 A
873
97,523
Intercontinental
Exchange,
Inc.
4,725
649,357
Invesco
Ltd.
3,687
61,167
Jefferies
Financial
Group,
Inc.
1,607
70,869
KKR
&
Co.,
Inc.
5,611
564,354
LPL
Financial
Holdings,
Inc.
623
164,597
MarketAxess
Holdings,
Inc.
295
64,679
Moody's
Corp.
1,226
481,855
Morningstar,
Inc.
210
64,758
MSCI,
Inc.,
Class
 A
588
329,545
Nasdaq,
Inc.
2,982
188,164
Northern
Trust
Corp.
1,687
150,008
Raymond
James
Financial,
Inc.
1,567
201,234
S&P
Global,
Inc.
2,456
1,044,905
SEI
Investments
Co.
883
63,488
State
Street
Corp.
2,555
197,553
Stifel
Financial
Corp.
825
64,490
T
Rowe
Price
Group,
Inc.
1,819
221,772
Tradeweb
Markets,
Inc.,
Class
 A
948
98,753
11,227,620
Chemicals
(1.2%)
Air
Products
and
Chemicals,
Inc.
2,263
548,257
Arcadium
Lithium
plc
(a)
11,133
47,983
Ashland,
Inc.
458
44,595
Axalta
Coating
Systems
Ltd.
(a)
2,426
83,430
Balchem
Corp.
359
55,627
Shares
Value
Cabot
Corp.
634
$
58,455
Celanese
Corp.,
Class
 A
1,198
205,888
Eastman
Chemical
Co.
1,300
130,286
Ecolab,
Inc.
2,625
606,112
Element
Solutions,
Inc.
2,567
64,124
FMC
Corp.
1,197
76,249
Huntsman
Corp.
1,462
38,056
International
Flavors
&
Fragrances,
Inc.
2,308
198,465
Mosaic
Co.
(The)
3,135
101,762
PPG
Industries,
Inc.
2,423
351,093
Sherwin-Williams
Co.
(The)
2,420
840,539
3,450,921
Commercial
Services
&
Supplies
(0.9%)
Casella
Waste
Systems,
Inc.,
Class
 A
(a)
529
52,302
Cintas
Corp.
570
391,607
Clean
Harbors,
Inc.
(a)
475
95,622
Copart,
Inc.
(a)
6,758
391,424
MSA
Safety,
Inc.
404
78,210
Republic
Services,
Inc.,
Class
 A
1,887
361,247
Rollins,
Inc.
2,236
103,460
Stericycle,
Inc.
(a)
892
47,053
Tetra
Tech,
Inc.
499
92,170
Veralto
Corp.
1,774
157,283
Vestis
Corp.
910
17,536
Waste
Management,
Inc.
3,654
778,850
2,566,764
Communications
Equipment
(0.9%)
Arista
Networks,
Inc.
(a)
1,812
525,444
Ciena
Corp.
(a)
909
44,950
Cisco
Systems,
Inc.
28,660
1,430,421
F5,
Inc.
(a)
436
82,661
Juniper
Networks,
Inc.
2,323
86,090
Lumentum
Holdings,
Inc.
(a)
501
23,722
Motorola
Solutions,
Inc.
1,157
410,712
Viasat
,
Inc.
(a)
558
10,094
2,614,094
Construction
&
Engineering
(0.3%)
AECOM
1,307
128,191
Comfort
Systems
USA,
Inc.
331
105,162
EMCOR
Group,
Inc.
441
154,438
MasTec
,
Inc.
(a)
579
53,992
Quanta
Services,
Inc.
1,314
341,377
Valmont
Industries,
Inc.
179
40,862
WillScot
Mobile
Mini
Holdings
Corp.
(a)
1,564
72,726
896,748
Construction
Materials
(0.3%)
Summit
Materials,
Inc.,
Class
 A
(a)
2,224
99,124
Vulcan
Materials
Co.
2,384
650,641
749,765
Consumer
Finance
(0.8%)
Ally
Financial,
Inc.
2,489
101,029
American
Express
Co.
4,860
1,106,573
Capital
One
Financial
Corp.
3,134
466,621
Credit
Acceptance
Corp.
(a)
50
27,577
Discover
Financial
Services
2,068
271,094
FirstCash
Holdings,
Inc.
328
41,833
OneMain
Holdings,
Inc.
996
50,886
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Consumer
Finance
(cont’d)
SLM
Corp.
1,902
$
41,445
SoFi
Technologies,
Inc.
(a)
8,286
60,488
Synchrony
Financial
3,423
147,600
2,315,146
Consumer
Staples
Distribution
&
Retail
(2.1%)
Albertsons
Cos.,
Inc.,
Class
 A
2,837
60,825
BJ's
Wholesale
Club
Holdings,
Inc.
(a)
806
60,974
Casey's
General
Stores,
Inc.
364
115,916
Costco
Wholesale
Corp.
2,939
2,153,200
Dollar
General
Corp.
1,421
221,761
Dollar
Tree,
Inc.
(a)
1,403
186,810
Kroger
Co.
(The)
6,694
382,428
Performance
Food
Group
Co.
(a)
1,488
111,064
Sprouts
Farmers
Market,
Inc.
(a)
1,030
66,414
Sysco
Corp.
4,658
378,136
Target
Corp.
3,031
537,124
U.S.
Foods
Holding
Corp.
(a)
2,414
130,284
Walmart,
Inc.
28,684
1,725,916
6,130,852
Containers
&
Packaging
(0.4%)
AptarGroup,
Inc.
728
104,752
Avery
Dennison
Corp.
876
195,567
Ball
Corp.
3,246
218,651
Berry
Global
Group,
Inc.
1,105
66,830
Crown
Holdings,
Inc.
1,167
92,496
Graphic
Packaging
Holding
Co.
3,341
97,490
Packaging
Corp.
of
America
968
183,707
Sealed
Air
Corp.
1,329
49,439
Silgan
Holdings,
Inc.
907
44,044
Sonoco
Products
Co.
909
52,577
Westrock
Co.
2,791
138,015
1,243,568
Distributors
(0.1%)
Genuine
Parts
Co.
888
137,578
LKQ
Corp.
1,654
88,340
Pool
Corp.
262
105,717
331,635
Diversified
Consumer
Services
(0.1%)
Bright
Horizons
Family
Solutions,
Inc.
(a)
462
52,372
Duolingo,
Inc.,
Class
 A
(a)
276
60,880
H&R
Block,
Inc.
1,147
56,329
Service
Corp.
International
1,202
89,201
258,782
Diversified
Telecommunication
Services
(0.7%)
AT&T,
Inc.
50,362
886,371
Iridium
Communications,
Inc.
905
23,675
Verizon
Communications,
Inc.
29,813
1,250,953
2,160,999
Electric
Utilities
(1.0%)
Alliant
Energy
Corp.
2,219
111,838
Avangrid,
Inc.
706
25,727
Constellation
Energy
Corp.
2,886
533,477
Evergy
,
Inc.
1,954
104,304
Eversource
Energy
3,078
183,972
Exelon
Corp.
8,955
336,439
IDACORP,
Inc.
475
44,123
Shares
Value
NextEra
Energy,
Inc.
18,638
$
1,191,155
NRG
Energy,
Inc.
2,064
139,712
PNM
Resources,
Inc.
825
31,053
Portland
General
Electric
Co.
947
39,774
Xcel
Energy,
Inc.
4,948
265,955
3,007,529
Electrical
Equipment
(1.3%)
Acuity
Brands,
Inc.
341
91,637
AMETEK,
Inc.
2,378
434,936
Atkore,
Inc.
410
78,048
Eaton
Corp.
plc
3,886
1,215,074
Emerson
Electric
Co.
5,879
666,796
EnerSys
287
27,110
Hubbell,
Inc.,
Class
 B
552
229,108
nVent
Electric
plc
1,787
134,740
Regal
Rexnord
Corp.
732
131,833
Rockwell
Automation,
Inc.
1,182
344,352
Sensata
Technologies
Holding
plc
1,400
51,436
Shoals
Technologies
Group,
Inc.,
Class
 A
(a)
1,138
12,723
Sunrun,
Inc.
(a)
1,549
20,416
Vertiv
Holdings
Co.,
Class
 A
3,697
301,934
3,740,143
Electronic
Equipment,
Instruments
&
Components
(0.9%)
Advanced
Energy
Industries,
Inc.
325
33,144
Amphenol
Corp.,
Class
 A
6,164
711,018
Arrow
Electronics,
Inc.
(a)
379
49,065
Avnet,
Inc.
647
32,078
Badger
Meter,
Inc.
266
43,042
Belden,
Inc.
357
33,062
CDW
Corp.
955
244,270
Cognex
Corp.
1,635
69,357
Coherent
Corp.
(a)
1,573
95,355
Corning,
Inc.
5,298
174,622
Insight
Enterprises,
Inc.
(a)
216
40,072
IPG
Photonics
Corp.
(a)
212
19,226
Jabil,
Inc.
878
117,608
Keysight
Technologies,
Inc.
(a)
1,791
280,077
Littelfuse
,
Inc.
228
55,256
Novanta
,
Inc.
(a)
336
58,723
TD
SYNNEX
Corp.
433
48,972
Teledyne
Technologies,
Inc.
(a)
470
201,780
Trimble,
Inc.
(a)
2,734
175,960
Vishay
Intertechnology
,
Inc.
955
21,659
Vontier
Corp.
1,106
50,168
Zebra
Technologies
Corp.,
Class
 A
(a)
364
109,724
2,664,238
Energy
Equipment
&
Services
(0.2%)
Baker
Hughes
Co.,
Class
 A
18,356
614,926
Entertainment
(1.6%)
AMC
Entertainment
Holdings,
Inc.,
Class
 A
(a)
1,549
5,762
Atlanta
Braves
Holdings,
Inc.,
Class
 C
(a)
458
17,890
Electronic
Arts,
Inc.
1,675
222,222
Liberty
Media
Corp-Liberty
Formula
One,
Class
 A
(a)
1,779
104,499
Liberty
Media
Corp-Liberty
Live,
Class
 A
(a)
557
23,589
Live
Nation
Entertainment,
Inc.
(a)
1,164
123,116
Madison
Square
Garden
Sports
Corp.
(a)
127
23,434
Netflix,
Inc.
(a)
3,039
1,845,676
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Entertainment
(cont’d)
ROBLOX
Corp.,
Class
 A
(a)
3,339
$
127,483
Roku,
Inc.,
Class
 A
(a)
890
58,001
Take-Two
Interactive
Software,
Inc.
(a)
1,123
166,754
Walt
Disney
Co.
(The)
14,348
1,755,621
Warner
Bros
Discovery,
Inc.
(a)
17,576
153,439
Warner
Music
Group
Corp.,
Class
 A
1,066
35,199
4,662,685
Financial
Services
(2.9%)
Affirm
Holdings,
Inc.,
Class
 A
(a)
1,610
59,989
Block,
Inc.,
Class
 A
(a)
3,885
328,593
Equitable
Holdings,
Inc.
2,812
106,884
Essent
Group
Ltd.
904
53,797
Euronet
Worldwide,
Inc.
(a)
315
34,628
Fidelity
National
Information
Services,
Inc.
3,998
296,572
Fiserv,
Inc.
(a)
4,157
664,372
Jack
Henry
&
Associates,
Inc.
525
91,208
Mastercard,
Inc.,
Class
 A
5,866
2,824,890
MGIC
Investment
Corp.
2,303
51,495
PayPal
Holdings,
Inc.
(a)
7,446
498,807
Radian
Group,
Inc.
1,277
42,741
Shift4
Payments,
Inc.,
Class
 A
(a)
412
27,221
Toast,
Inc.,
Class
 A
(a)
2,646
65,938
Visa,
Inc.,
Class
 A
11,134
3,107,277
Voya
Financial,
Inc.
864
63,867
Western
Union
Co.
(The)
2,821
39,437
WEX,
Inc.
(a)
302
71,734
8,429,450
Food
Products
(1.1%)
Bunge
Global
SA
1,276
130,815
Campbell
Soup
Co.
1,715
76,232
Conagra
Brands,
Inc.
4,265
126,415
Darling
Ingredients,
Inc.
(a)
1,354
62,974
Flowers
Foods,
Inc.
1,944
46,170
General
Mills,
Inc.
5,307
371,331
Hershey
Co.
(The)
1,365
265,492
Hormel
Foods
Corp.
2,549
88,935
Ingredion,
Inc.
626
73,148
JM
Smucker
Co.
(The)
926
116,556
Kellanova
2,574
147,464
Kraft
Heinz
Co.
(The)
7,358
271,510
Lamb
Weston
Holdings,
Inc.
1,272
135,506
Lancaster
Colony
Corp.
185
38,412
McCormick
&
Co.,
Inc.
(Non-Voting)
2,393
183,806
Mondelez
International,
Inc.,
Class
 A
12,599
881,930
Simply
Good
Foods
Co.
(The)
(a)
888
30,219
3,046,915
Gas
Utilities
(0.1%)
National
Fuel
Gas
Co.
854
45,877
New
Jersey
Resources
Corp.
928
39,820
ONE
Gas,
Inc.
521
33,620
Southwest
Gas
Holdings,
Inc.
581
44,232
UGI
Corp.
2,005
49,203
212,752
Ground
Transportation
(1.1%)
Avis
Budget
Group,
Inc.
168
20,573
JB
Hunt
Transport
Services,
Inc.
644
128,317
Shares
Value
Knight-Swift
Transportation
Holdings,
Inc.,
Class
 A
1,218
$
67,014
Landstar
System,
Inc.
278
53,587
Old
Dominion
Freight
Line,
Inc.
1,462
320,631
Ryder
System,
Inc.
359
43,148
Saia,
Inc.
(a)
204
119,340
Uber
Technologies,
Inc.
(a)
14,077
1,083,788
Union
Pacific
Corp.
4,752
1,168,660
XPO,
Inc.
(a)
915
111,658
3,116,716
Health
Care
Equipment
&
Supplies
(3.1%)
Abbott
Laboratories
12,917
1,468,146
Align
Technology,
Inc.
(a)
510
167,239
Baxter
International,
Inc.
3,657
156,300
Becton
Dickinson
&
Co.
2,162
534,987
Boston
Scientific
Corp.
(a)
10,955
750,308
CONMED
Corp.
236
18,899
Cooper
Cos.,
Inc.
(The)
1,511
153,306
DENTSPLY
SIRONA,
Inc.
1,620
53,768
Dexcom,
Inc.
(a)
2,823
391,550
Edwards
Lifesciences
Corp.
(a)
4,481
428,204
Envista
Holdings
Corp.
(a)
1,330
28,436
GE
HealthCare
Technologies,
Inc.
3,011
273,730
Globus
Medical,
Inc.,
Class
 A
(a)
883
47,364
Haemonetics
Corp.
(a)
388
33,116
Hologic,
Inc.
(a)
1,662
129,570
ICU
Medical,
Inc.
(a)
157
16,849
IDEXX
Laboratories,
Inc.
(a)
607
327,738
Inari
Medical,
Inc.
(a)
385
18,472
Inspire
Medical
Systems,
Inc.
(a)
219
47,039
Insulet
Corp.
(a)
533
91,356
Intuitive
Surgical,
Inc.
(a)
2,624
1,047,212
iRhythm
Technologies,
Inc.
(a)
234
27,144
Masimo
Corp.
(a)
332
48,754
Medtronic
plc
9,953
867,404
Merit
Medical
Systems,
Inc.
(a)
434
32,876
Neogen
Corp.
(a)
1,681
26,526
Novocure
Ltd.
(a)
773
12,082
Penumbra,
Inc.
(a)
283
63,160
QuidelOrtho
Corp.
(a)
380
18,217
ResMed,
Inc.
1,065
210,902
Shockwave
Medical,
Inc.
(a)
278
90,525
STERIS
plc
752
169,065
Stryker
Corp.
2,675
957,302
Teleflex,
Inc.
359
81,195
Zimmer
Biomet
Holdings,
Inc.
1,492
196,914
8,985,655
Health
Care
Providers
&
Services
(2.5%)
agilon
health,
Inc.
(a)
2,300
14,030
AMN
Healthcare
Services,
Inc.
(a)
308
19,253
Centene
Corp.
(a)
3,898
305,915
Chemed
Corp.
111
71,254
Cigna
Group
(The)
2,153
781,948
CVS
Health
Corp.
9,423
751,578
DaVita,
Inc.
(a)
415
57,291
Elevance
Health,
Inc.
1,735
899,667
Encompass
Health
Corp.
759
62,678
Ensign
Group,
Inc.
(The)
418
52,008
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Health
Care
Providers
&
Services
(cont’d)
HealthEquity,
Inc.
(a)
602
$
49,141
Henry
Schein,
Inc.
(a)
986
74,463
Humana,
Inc.
886
307,194
Laboratory
Corp.
of
America
Holdings
603
131,731
Molina
Healthcare,
Inc.
(a)
442
181,587
Option
Care
Health,
Inc.
(a)
1,362
45,681
Progyny,
Inc.
(a)
470
17,931
Quest
Diagnostics,
Inc.
780
103,826
R1
RCM,
Inc.
(a)
689
8,874
Select
Medical
Holdings
Corp.
790
23,819
Surgery
Partners,
Inc.
(a)
514
15,333
UnitedHealth
Group,
Inc.
6,475
3,203,182
7,178,384
Health
Care
Technology
(0.1%)
Doximity
,
Inc.,
Class
 A
(a)
894
24,057
Veeva
Systems,
Inc.,
Class
 A
(a)
1,040
240,958
265,015
Hotels,
Restaurants
&
Leisure
(1.8%)
Airbnb,
Inc.,
Class
 A
(a)
2,955
487,457
Aramark
2,551
82,959
Booking
Holdings,
Inc.
239
867,063
Chipotle
Mexican
Grill,
Inc.,
Class
 A
(a)
253
735,413
Choice
Hotels
International,
Inc.
254
32,093
Darden
Restaurants,
Inc.
1,128
188,545
Domino's
Pizza,
Inc.
338
167,945
Hilton
Grand
Vacations,
Inc.
(a)
465
21,953
Hilton
Worldwide
Holdings,
Inc.
1,935
412,755
Hyatt
Hotels
Corp.,
Class
 A
365
58,261
Marriott
International,
Inc.,
Class
 A
1,903
480,146
Marriott
Vacations
Worldwide
Corp.
262
28,225
Planet
Fitness,
Inc.,
Class
 A
(a)
695
43,528
Starbucks
Corp.
10,336
944,607
Texas
Roadhouse,
Inc.,
Class
 A
646
99,788
Vail
Resorts,
Inc.
269
59,941
Wendy's
Co.
(The)
1,300
24,492
Wingstop
,
Inc.
283
103,691
Wyndham
Hotels
&
Resorts,
Inc.
654
50,195
Yum!
Brands,
Inc.
2,593
359,519
5,248,576
Household
Durables
(0.6%)
D.R.
Horton,
Inc.
2,665
438,526
KB
Home
750
53,160
Leggett
&
Platt,
Inc.
955
18,288
Lennar
Corp.,
Class
 A
2,267
389,879
Meritage
Homes
Corp.
336
58,955
Mohawk
Industries,
Inc.
(a)
359
46,989
Newell
Brands,
Inc.
2,882
23,142
NVR,
Inc.
(a)
27
218,699
PulteGroup,
Inc.
2,028
244,617
Taylor
Morrison
Home
Corp.,
Class
 A
(a)
1,001
62,232
Tempur
Sealy
International,
Inc.
1,167
66,309
TopBuild
Corp.
(a)
297
130,897
Whirlpool
Corp.
363
43,426
1,795,119
Household
Products
(1.3%)
Church
&
Dwight
Co.,
Inc.
1,681
175,345
Clorox
Co.
(The)
843
129,072
Shares
Value
Colgate-Palmolive
Co.
5,414
$
487,531
Kimberly-Clark
Corp.
2,193
283,665
Procter
&
Gamble
Co.
(The)
15,654
2,539,861
3,615,474
Independent
Power
and
Renewable
Electricity
Producers
(0.1%)
AES
Corp.
(The)
6,344
113,748
Brookfield
Renewable
Corp.,
Class
 A
1,255
30,835
Clearway
Energy,
Inc.,
Class
 C
1,110
25,586
Ormat
Technologies,
Inc.
499
33,029
203,198
Insurance
(2.4%)
Aflac,
Inc.
4,385
376,496
Allstate
Corp.
(The)
2,165
374,567
American
Financial
Group,
Inc.
637
86,938
American
International
Group,
Inc.
5,642
441,035
Arch
Capital
Group
Ltd.
(a)
3,017
278,891
Axis
Capital
Holdings
Ltd.
678
44,084
Brown
&
Brown,
Inc.
1,925
168,514
Cincinnati
Financial
Corp.
1,276
158,441
Everest
Group
Ltd.
355
141,112
First
American
Financial
Corp.
820
50,061
Globe
Life,
Inc.
767
89,256
Hanover
Insurance
Group,
Inc.
(The)
304
41,396
Hartford
Financial
Services
Group,
Inc.
(The)
2,494
257,007
Kinsale
Capital
Group,
Inc.
188
98,651
Lincoln
National
Corp.
1,490
47,576
Marsh
&
McLennan
Cos.,
Inc.
4,111
846,784
MetLife,
Inc.
5,055
374,626
Old
Republic
International
Corp.
2,163
66,447
Primerica,
Inc.
288
72,852
Principal
Financial
Group,
Inc.
1,972
170,203
Progressive
Corp.
(The)
4,910
1,015,486
Prudential
Financial,
Inc.
3,003
352,552
Reinsurance
Group
of
America,
Inc.
544
104,927
RenaissanceRe
Holdings
Ltd.
419
98,478
Ryan
Specialty
Holdings,
Inc.,
Class
 A
830
46,065
Selective
Insurance
Group,
Inc.
512
55,895
Travelers
Cos.,
Inc.
(The)
1,894
435,885
Unum
Group
1,615
86,661
W.
R.
Berkley
Corp.
1,677
148,314
White
Mountains
Insurance
Group
Ltd.
19
34,092
Willis
Towers
Watson
plc
854
234,850
6,798,142
Interactive
Media
&
Services
(3.8%)
Alphabet,
Inc.,
Class
 A
(a)
71,571
10,802,211
IAC,
Inc.
(a)
556
29,657
Pinterest,
Inc.,
Class
 A
(a)
4,147
143,777
Snap,
Inc.,
Class
 A
(a)
7,411
85,078
ZoomInfo
Technologies,
Inc.,
Class
 A
(a)
1,699
27,235
11,087,958
IT
Services
(1.6%)
Accenture
plc,
Class
 A
4,435
1,537,215
Akamai
Technologies,
Inc.
(a)
1,076
117,026
Amdocs
Ltd.
767
69,314
Cloudflare,
Inc.,
Class
 A
(a)
2,094
202,762
Cognizant
Technology
Solutions
Corp.,
Class
 A
3,453
253,070
DXC
Technology
Co.
(a)
1,390
29,482
EPAM
Systems,
Inc.
(a)
403
111,293
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
IT
Services
(cont’d)
Gartner,
Inc.
(a)
580
$
276,469
International
Business
Machines
Corp.
6,467
1,234,938
MongoDB,
Inc.,
Class
 A
(a)
488
175,016
Okta,
Inc.,
Class
 A
(a)
1,093
114,350
Snowflake,
Inc.,
Class
 A
(a)
2,162
349,379
Twilio,
Inc.,
Class
 A
(a)
1,242
75,948
VeriSign,
Inc.
(a)
600
113,706
4,659,968
Leisure
Products
(0.1%)
Brunswick
Corp.
754
72,776
Hasbro,
Inc.
879
49,681
Mattel,
Inc.
(a)
2,476
49,050
171,507
Life
Sciences
Tools
&
Services
(1.7%)
Agilent
Technologies,
Inc.
2,153
313,283
Avantor,
Inc.
(a)
5,063
129,461
Bio-Rad
Laboratories,
Inc.,
Class
 A
(a)
154
53,264
Bio-Techne
Corp.
1,201
84,538
Bruker
Corp.
714
67,073
Charles
River
Laboratories
International,
Inc.
(a)
383
103,774
Danaher
Corp.
5,056
1,262,584
Fortrea
Holdings,
Inc.
(a)
689
27,657
Illumina,
Inc.
(a)
1,144
157,094
IQVIA
Holdings,
Inc.
(a)
1,338
338,367
Medpace
Holdings,
Inc.
(a)
185
74,768
Mettler-Toledo
International,
Inc.
(a)
159
211,675
PerkinElmer,
Inc.
946
99,330
Repligen
Corp.
(a)
395
72,648
Thermo
Fisher
Scientific,
Inc.
2,854
1,658,773
Waters
Corp.
(a)
451
155,248
West
Pharmaceutical
Services,
Inc.
540
213,684
5,023,221
Machinery
(3.3%)
AGCO
Corp.
592
72,828
Allison
Transmission
Holdings,
Inc.
977
79,293
Caterpillar,
Inc.
4,306
1,577,848
Chart
Industries,
Inc.
(a)
398
65,559
CNH
Industrial
NV
8,813
114,216
Cummins,
Inc.
1,442
424,885
Deere
&
Co.
2,686
1,103,248
Donaldson
Co.,
Inc.
1,322
98,727
Dover
Corp.
1,438
254,799
Esab
Corp.
654
72,313
Flowserve
Corp.
1,436
65,597
Fortive
Corp.
3,621
311,478
Franklin
Electric
Co.,
Inc.
353
37,704
Graco,
Inc.
1,846
172,527
IDEX
Corp.
756
184,479
Illinois
Tool
Works,
Inc.
3,079
826,188
Ingersoll
Rand,
Inc.
4,165
395,467
ITT,
Inc.
909
123,651
Lincoln
Electric
Holdings,
Inc.
617
157,606
Middleby
Corp.
(The)
(a)
511
82,164
Mueller
Industries,
Inc.
1,257
67,790
Nordson
Corp.
561
154,017
Oshkosh
Corp.
729
90,914
Otis
Worldwide
Corp.
4,185
415,445
Shares
Value
PACCAR,
Inc.
5,321
$
659,219
Parker-Hannifin
Corp.
1,320
733,643
Pentair
plc
1,817
155,244
Snap-on,
Inc.
577
170,919
SPX
Technologies,
Inc.
(a)
502
61,811
Stanley
Black
&
Decker,
Inc.
1,503
147,189
Timken
Co.
(The)
587
51,321
Toro
Co.
(The)
1,008
92,363
Watts
Water
Technologies,
Inc.,
Class
 A
295
62,702
Westinghouse
Air
Brake
Technologies
Corp.
1,813
264,118
Xylem,
Inc.
2,493
322,195
9,669,467
Media
(0.8%)
Cable
One,
Inc.
29
12,271
Charter
Communications,
Inc.,
Class
 A
(a)
688
199,953
Comcast
Corp.,
Class
 A
27,899
1,209,422
Interpublic
Group
of
Cos.,
Inc.
(The)
2,789
91,005
Liberty
Broadband
Corp.,
Class
 C
(a)
968
55,399
New
York
Times
Co.
(The),
Class
 A
1,329
57,439
Nexstar
Media
Group,
Inc.,
Class
 A
213
36,698
Omnicom
Group,
Inc.
1,475
142,721
Paramount
Global,
Class
 B
4,782
56,284
Sirius
XM
Holdings,
Inc.
5,114
19,842
TEGNA,
Inc.
1,592
23,784
Trade
Desk,
Inc.
(The),
Class
 A
(a)
3,056
267,156
2,171,974
Metals
&
Mining
(0.6%)
ATI,
Inc.
(a)
2,404
123,013
Commercial
Metals
Co.
2,013
118,304
Nucor
Corp.
3,642
720,752
Reliance,
Inc.
1,035
345,876
Steel
Dynamics,
Inc.
2,783
412,524
1,720,469
Multi-Utilities
(0.8%)
Ameren
Corp.
2,309
170,774
Black
Hills
Corp.
633
34,562
CMS
Energy
Corp.
2,576
155,436
Consolidated
Edison,
Inc.
3,086
280,240
Dominion
Energy,
Inc.
7,515
369,663
DTE
Energy
Co.
1,827
204,880
NiSource,
Inc.
3,901
107,902
Public
Service
Enterprise
Group,
Inc.
4,457
297,638
Sempra
5,685
408,353
WEC
Energy
Group,
Inc.
2,805
230,346
2,259,794
Oil,
Gas
&
Consumable
Fuels
(0.3%)
Occidental
Petroleum
Corp.
11,118
722,559
Paper
&
Forest
Products
(0.0%)(b)
Louisiana-Pacific
Corp.
442
37,088
Passenger
Airlines
(0.2%)
Alaska
Air
Group,
Inc.
(a)
1,008
43,334
American
Airlines
Group,
Inc.
(a)
4,940
75,829
Delta
Air
Lines,
Inc.
5,007
239,685
Southwest
Airlines
Co.
4,653
135,821
494,669
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Personal
Care
Products
(0.1%)
BellRing
Brands,
Inc.
(a)
890
$
52,537
Coty,
Inc.,
Class
 A
(a)
2,507
29,984
elf
Beauty,
Inc.
(a)
355
69,590
Estee
Lauder
Cos.,
Inc.
(The),
Class
 A
1,508
232,458
384,569
Pharmaceuticals
(3.4%)
Bristol-Myers
Squibb
Co.
15,156
821,910
Catalent,
Inc.
(a)
1,347
76,038
Elanco
Animal
Health,
Inc.
(a)
3,751
61,066
Eli
Lilly
&
Co.
5,753
4,475,604
Jazz
Pharmaceuticals
plc
(a)
467
56,236
Merck
&
Co.,
Inc.
18,774
2,477,229
Organon
&
Co.
1,982
37,262
Perrigo
Co.
plc
1,046
33,671
Pfizer,
Inc.
42,337
1,174,852
Royalty
Pharma
plc,
Class
 A
2,922
88,741
Zoetis,
Inc.,
Class
 A
3,431
580,559
9,883,168
Professional
Services
(0.9%)
Alight,
Inc.,
Class
 A
(a)
3,085
30,387
Automatic
Data
Processing,
Inc.
2,877
718,502
Booz
Allen
Hamilton
Holding
Corp.,
Class
 A
1,048
155,565
Broadridge
Financial
Solutions,
Inc.
843
172,697
Concentrix
Corp.
318
21,058
Dayforce,
Inc.
(a)
1,078
71,374
Dun
&
Bradstreet
Holdings,
Inc.
2,077
20,853
Equifax,
Inc.
960
256,819
ExlService
Holdings,
Inc.
(a)
1,200
38,160
Exponent,
Inc.
416
34,399
FTI
Consulting,
Inc.
(a)
277
58,250
Genpact
Ltd.
1,205
39,705
Insperity,
Inc.
291
31,896
ManpowerGroup,
Inc.
298
23,137
Maximus,
Inc.
498
41,782
Paychex,
Inc.
2,232
274,090
Paycom
Software,
Inc.
367
73,037
Paylocity
Holding
Corp.
(a)
309
53,105
Robert
Half,
Inc.
732
58,033
Science
Applications
International
Corp.
377
49,157
SS&C
Technologies
Holdings,
Inc.
1,573
101,254
TransUnion
1,440
114,912
TriNet
Group,
Inc.
267
35,375
Verisk
Analytics,
Inc.,
Class
 A
1,090
256,946
2,730,493
Real
Estate
Management
&
Development
(0.3%)
CBRE
Group,
Inc.,
Class
 A
(a)
2,782
270,521
CoStar
Group,
Inc.
(a)
3,095
298,977
Howard
Hughes
Holdings,
Inc.
(a)
232
16,848
Jones
Lang
LaSalle,
Inc.
(a)
444
86,620
Zillow
Group,
Inc.,
Class
 C
(a)
1,474
71,902
744,868
Semiconductors
&
Semiconductor
Equipment
(10.6%)
Advanced
Micro
Devices,
Inc.
(a)
11,338
2,046,396
Allegro
MicroSystems
,
Inc.
(a)
531
14,316
Analog
Devices,
Inc.
3,476
687,518
Applied
Materials,
Inc.
5,873
1,211,189
Axcelis
Technologies,
Inc.
(a)
228
25,427
Shares
Value
Broadcom,
Inc.
3,128
$
4,145,882
Cirrus
Logic,
Inc.
(a)
403
37,302
Diodes,
Inc.
(a)
325
22,912
Enphase
Energy,
Inc.
(a)
849
102,712
Entegris
,
Inc.
1,072
150,659
First
Solar,
Inc.
(a)
654
110,395
Intel
Corp.
29,847
1,318,342
KLA
Corp.
949
662,943
Lam
Research
Corp.
924
897,731
Lattice
Semiconductor
Corp.
(a)
984
76,978
Marvell
Technology,
Inc.
5,980
423,862
Microchip
Technology,
Inc.
3,690
331,030
Micron
Technology,
Inc.
7,719
909,993
MKS
Instruments,
Inc.
693
92,169
Monolithic
Power
Systems,
Inc.
321
217,452
NVIDIA
Corp.
15,214
13,746,762
ON
Semiconductor
Corp.
(a)
2,940
216,237
Onto
Innovation,
Inc.
(a)
351
63,559
Power
Integrations,
Inc.
410
29,335
Qorvo,
Inc.
(a)
708
81,300
QUALCOMM,
Inc.
7,865
1,331,544
Rambus,
Inc.
(a)
789
48,768
Silicon
Laboratories,
Inc.
(a)
226
32,481
Skyworks
Solutions,
Inc.
1,146
124,135
SolarEdge
Technologies,
Inc.
(a)
403
28,605
Teradyne,
Inc.
1,108
125,016
Texas
Instruments,
Inc.
6,407
1,116,163
Universal
Display
Corp.
310
52,219
Wolfspeed
,
Inc.
(a)
904
26,668
30,508,000
Software
(11.6%)
Adobe,
Inc.
(a)
3,184
1,606,646
Altair
Engineering,
Inc.,
Class
 A
(a)
394
33,943
ANSYS,
Inc.
(a)
599
207,949
Appfolio
,
Inc.,
Class
 A
(a)
132
32,570
AppLovin
Corp.,
Class
 A
(a)
1,011
69,981
Aspen
Technology,
Inc.
(a)
199
42,443
Atlassian
Corp.,
Class
 A
(a)
1,098
214,231
Autodesk,
Inc.
(a)
1,491
388,286
BILL
Holdings,
Inc.
(a)
728
50,028
Box,
Inc.,
Class
 A
(a)
1,044
29,566
Cadence
Design
Systems,
Inc.
(a)
1,894
589,564
Confluent,
Inc.,
Class
 A
(a)
1,466
44,742
Crowdstrike
Holdings,
Inc.,
Class
 A
(a)
1,558
499,479
Datadog,
Inc.,
Class
 A
(a)
1,931
238,672
DocuSign,
Inc.,
Class
 A
(a)
1,456
86,705
Dolby
Laboratories,
Inc.,
Class
 A
428
35,854
DoubleVerify
Holdings,
Inc.
(a)
987
34,703
Dropbox,
Inc.,
Class
 A
(a)
1,907
46,340
Dynatrace,
Inc.
(a)
1,717
79,737
Elastic
NV
(a)
570
57,137
Fair
Isaac
Corp.
(a)
185
231,178
Five9,
Inc.
(a)
517
32,111
Fortinet,
Inc.
(a)
4,391
299,949
Gen
Digital,
Inc.
3,859
86,442
Guidewire
Software,
Inc.
(a)
590
68,859
HashiCorp
,
Inc.,
Class
 A
(a)
713
19,215
HubSpot,
Inc.
(a)
342
214,284
Intuit,
Inc.
1,920
1,248,000
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Software
(cont’d)
Manhattan
Associates,
Inc.
(a)
442
$
110,602
Microsoft
Corp.
45,809
19,272,762
Nutanix,
Inc.,
Class
 A
(a)
1,734
107,022
Oracle
Corp.
11,280
1,416,881
Palo
Alto
Networks,
Inc.
(a)
2,259
641,850
PTC,
Inc.
(a)
844
159,465
Qualys,
Inc.
(a)
261
43,553
Roper
Technologies,
Inc.
745
417,826
Salesforce,
Inc.
6,649
2,002,546
SentinelOne
,
Inc.,
Class
 A
(a)
1,630
37,995
ServiceNow,
Inc.
(a)
1,439
1,097,094
Smartsheet,
Inc.,
Class
 A
(a)
936
36,036
SPS
Commerce,
Inc.
(a)
262
48,444
Synopsys,
Inc.
(a)
1,068
610,362
Tenable
Holdings,
Inc.
(a)
818
40,434
Teradata
Corp.
(a)
731
28,268
Tyler
Technologies,
Inc.
(a)
298
126,653
Workday,
Inc.,
Class
 A
(a)
1,440
392,760
Workiva,
Inc.,
Class
 A
(a)
340
28,832
Zoom
Video
Communications,
Inc.,
Class
 A
(a)
1,646
107,599
Zscaler
,
Inc.
(a)
626
120,586
33,436,184
Specialty
Retail
(2.4%)
Academy
Sports
&
Outdoors,
Inc.
544
36,742
Advance
Auto
Parts,
Inc.
404
34,376
Asbury
Automotive
Group,
Inc.
(a)
134
31,595
AutoNation,
Inc.
(a)
195
32,288
AutoZone,
Inc.
(a)
115
362,440
Bath
&
Body
Works,
Inc.
1,592
79,632
Best
Buy
Co.,
Inc.
1,206
98,928
Burlington
Stores,
Inc.
(a)
439
101,931
CarMax,
Inc.
(a)
981
85,455
Chewy,
Inc.,
Class
 A
(a)
816
12,983
Dick's
Sporting
Goods,
Inc.
386
86,796
Five
Below,
Inc.
(a)
369
66,929
Floor
&
Decor
Holdings,
Inc.,
Class
 A
(a)
715
92,678
GameStop
Corp.,
Class
 A
(a)
1,848
23,137
Home
Depot,
Inc.
(The)
6,608
2,534,829
Lithia
Motors,
Inc.,
Class
 A
182
54,756
Lowe's
Cos.,
Inc.
3,824
974,087
O'Reilly
Automotive,
Inc.
(a)
385
434,619
Penske
Automotive
Group,
Inc.
126
20,411
RH
(a)
101
35,174
Ross
Stores,
Inc.
2,185
320,671
TJX
Cos.,
Inc.
(The)
7,576
768,358
Tractor
Supply
Co.
739
193,411
Ulta
Beauty,
Inc.
(a)
330
172,550
Williams-Sonoma,
Inc.
405
128,600
6,783,376
Technology
Hardware,
Storage
&
Peripherals
(6.2%)
Apple,
Inc.
96,746
16,590,004
Dell
Technologies,
Inc.,
Class
 C
1,781
203,230
Hewlett
Packard
Enterprise
Co.
9,165
162,495
HP,
Inc.
5,939
179,477
NetApp,
Inc.
1,471
154,411
Pure
Storage,
Inc.,
Class
 A
(a)
2,091
108,711
Seagate
Technology
Holdings
plc
1,487
138,365
Shares
Value
Super
Micro
Computer,
Inc.
(a)
335
$
338,360
Western
Digital
Corp.
(a)
2,307
157,430
18,032,483
Textiles,
Apparel
&
Luxury
Goods
(0.5%)
Capri
Holdings
Ltd.
(a)
817
37,010
Columbia
Sportswear
Co.
247
20,052
Crocs,
Inc.
(a)
418
60,108
Deckers
Outdoor
Corp.
(a)
173
162,838
Lululemon
Athletica,
Inc.
(a)
724
282,831
NIKE,
Inc.,
Class
 B
7,830
735,863
PVH
Corp.
433
60,884
Ralph
Lauren
Corp.,
Class
 A
271
50,883
Skechers
USA,
Inc.,
Class
 A
(a)
930
56,972
Tapestry,
Inc.
1,612
76,538
VF
Corp.
2,491
38,212
1,582,191
Trading
Companies
&
Distributors
(0.5%)
Air
Lease
Corp.,
Class
 A
1,195
61,471
Applied
Industrial
Technologies,
Inc.
420
82,971
Beacon
Roofing
Supply,
Inc.
(a)
356
34,895
Core
&
Main,
Inc.,
Class
 A
(a)
1,983
113,527
Fastenal
Co.
3,776
291,280
GATX
Corp.
386
51,735
MSC
Industrial
Direct
Co.,
Inc.,
Class
 A
325
31,538
SiteOne
Landscape
Supply,
Inc.
(a)
298
52,016
United
Rentals,
Inc.
689
496,845
WESCO
International,
Inc.
299
51,213
WW
Grainger,
Inc.
294
299,086
1,566,577
Water
Utilities
(0.1%)
American
Water
Works
Co.,
Inc.
1,727
211,057
Essential
Utilities,
Inc.
2,537
93,996
305,053
Wireless
Telecommunication
Services
(0.2%)
T-Mobile
US,
Inc.
3,366
549,399
Total
Common
Stocks
(Cost
$228,581,583)
287,910,733
Short-Term
Investment
(0.2%)
Investment
Company
(0.2%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(
See
Note
G
)
(Cost
$562,519)
562,519
562,519
Total
Investments
(
99.9%
)
(Cost
$229,144,102
)
(c)
288,473,252
Other
Assets
in
Excess
of
Liabilities
(0.1%)
199,739
NET
ASSETS
(100.0%)
$288,672,991
(a)
Non-income
producing
security.
(b)
Amount
is
less
than
0.05%.
(c)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$229,144,102.
The
aggregate
gross
unrealized
appreciation
is
$64,101,834
and
the
aggregate
gross
unrealized
depreciation
is
$4,772,684,
resulting
in
net
unrealized
appreciation
of
$59,329,150.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
71.6
%
Software
11.6
Semiconductors
&
Semiconductor
Equipment
10.6
Technology
Hardware,
Storage
&
Peripherals
6.2
Total
Investments
100.0
%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
14
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$228,581,583)
$
287,910,733
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$562,519)
562,519
Total
Investments
in
Securities,
at
Value
(Cost
$229,144,102)
288,473,252
Cash
64,989
Dividends
Receivable
170,301
Total
Assets
288,708,542
Liabilities:
Payable
for
Management
Fee
35,510
Payable
for
Dividends
to
Shareholders
41
Total
Liabilities
35,551
Net
Assets
$
288,672,991
Net
Assets
Consist
of:
Paid-in-Capital
$
228,241,872
Total
Distributable
Earnings
60,431,119
Net
Assets
$
288,672,991
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
4,402,000
Net
Asset
Value
Per
Share
$
65
.58
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
15
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Six
Months
Ended
March
31,
2024
Investment
Income:
Dividends
from
Securities
of
Unaffiliated
Issuers
(Net
of
$287
of
Foreign
Taxes
Withheld)
$
1,827,698
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
17,185
Total
Investment
Income
1,844,883
Expenses:
Management
Fee
(Note
B)
186,266
Total
Expenses
186,266
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(
504
)
Net
Expenses
185,762
Net
Investment
Income
1,659,121
Realized
Gain
(Loss):
Investments
Sold
(
471,624
)
In-kind
Redemptions
on
Investments
2,015,970
Net
Realized
Gain
1,544,346
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
50,928,123
Net
Change
in
Unrealized
Appreciation
(Depreciation)
50,928,123
Net
Realized
Gain
and
Change
in
Unrealized
Appreciation
(Depreciation)
52,472,469
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
54,131,590
Semi-Annual
Report
March
31,
2024
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
16
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statements
of
Changes
in
Net
Assets
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
^
to
September
30,
2023
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
1,659,121
$
1,281,788
Net
Realized
Gain
(Loss)
1,544,346
(
585,115
)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
50,928,123
8,401,027
Net
Increase
in
Net
Assets
Resulting
from
Operations
54,131,590
9,097,700
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(
1,647,300
)
(
1,150,871
)
Total
Dividends
and
Distributions
to
Shareholders
(
1,647,300
)
(
1,150,871
)
Capital
Share
Transactions:
Subscribed
20,100,000
Subscribed
In-Kind
24,698,480
189,829,193
Redeemed
In-Kind
(
6,385,801
)
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
18,312,679
209,929,193
Total
Increase
in
Net
Assets
70,796,969
217,876,022
Net
Assets:
Beginning
of
Period
217,876,022
End
of
Period
$
288,672,991
$
217,876,022
Capital
Share
Transactions:
Beginning
of
Period
4,102,000
Shares
Subscribed
402,000
Shares
Subscribed
In-Kind
400,000
3,700,000
Shares
Redeemed
In-Kind
(
100,000
)
Shares
Outstanding,
End
of
Period
Net
Increase
in
4,402,000
4,102,000
^
Commencement
of
Operations
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
17
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
(1)
to
September
30,
2023
Net
Asset
Value,
Beginning
of
Period
$
53
.11‌
$
50
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
0
.39‌
0
.45‌
Net
Realized
and
Unrealized
Gain
12
.47‌
2
.98‌
Total
from
Investment
Operations
12
.86‌
3
.43‌
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
0
.39‌
)
(
0
.32‌
)
Net
Asset
Value,
End
of
Period
$
65
.58‌
$
53
.11‌
Total
Return
(3)
24
.26‌
%
(4)
6
.85‌
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$288,673
$217,876
Net
Assets,
End
of
Period
(Thousands)
$
288,673‌
$
217,876‌
Ratio
of
Expenses
0
.15‌
%
(5)
(6)
0
.15‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
1
.33‌
%
(5)
(6)
1
.25‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.00‌
%
(5)
(7)
0
.00‌
%
(5)
(7)
Portfolio
Turnover
Rate
3‌
%
(4)
(8)
6‌
%
(4)
(8)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(7)
Amount
is
less
than
0.005%.
(8)
In-kind
transactions
are
not
included
in
portfolio
turnover
calculations.
18
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
"Trust")
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"), the
Trust
is
authorized
to establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Act").
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Calvert
US
Large-Cap
Core
Responsible
Index
ETF
(the
"Fund"),
which
seeks
to
track
the
performance
of
the
Calvert
US
Large-
Cap
Core
Responsible
Index.
The
Fund
is
diversified.
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
An
equity
portfolio
security
list-
ed
or
traded
on
an
exchange
is
valued
at
its
latest
reported
sales
price
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price),
and
if
there
were
no
sales
on
a
given
day
and
if
there
is
no
official
ex-
change
closing
price
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
relevant
ex-
changes.
If
only
bid
prices
are
available
then
the
latest
bid
price
may
be
used.
Listed
equity
securities
not
traded
on
the
valuation
date
with
no
reported
bid
and
asked
prices
available
on
the
exchange
are
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers.
In
cases
where
a
securi-
ty
is
traded
on
more
than
one
exchange,
the
security
is
valued
on
the
exchange
designated
as
the
primary
market;
(2)
all
other
equity
portfolio
securities
for
which
over-the-
counter
(“OTC”)
market
quotations
are
readily
available
are
valued
at
the
latest
reported
sales
price
(or
at
the
mar-
ket
official
closing
price
if
such
market
reports
an
official
closing
price),
and
if
there
was
no
trading
in
the
security
on
a
given
day
and
if
there
is
no
official
closing
price
from
relevant
markets
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
rel-
evant
markets.
An
unlisted
equity
security
that
does
not
trade
on
the
valuation
date
and
for
which
bid
and
asked
prices
from
the
relevant
markets
are
unavailable
is
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers;
(3)
certain
portfolio
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
whol-
ly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable brokers/dealers;
(4)
when
market
quo-
tations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circumstances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
market
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees; and
(5)
investments
in
mutual
funds,
including
the
Morgan
Stanley
Institu-
tional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
4.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
quarterly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
5.
Security
Transactions
and Income:
Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
at
fair
value.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:  
Common
Stocks
$
287,910‌
(1)
$
$
$
287,910
Short-Term
Investment
Investment
Company
563‌
563
Total
Assets
$
288,473‌
$—
$—
$288,473
(1)
The
level
classification
by
major
category
of
investments
is
the
same
as
the
category
presentation
in
the
Portfolio
of
Investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
20
Morgan
Stanley
ETF
Trust
monthly
at
the
annual
rate
of
0.15% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 50,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statements
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the six
months
ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $7,762,234
and
$7,902,241,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
for
the
six
months
ended
March
31,
2024. Purchase
and
Sales
related
to
In-Kind
transactions
were
$24,539,723 and
$6,364,863 for
the six
months ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
investment
in
the
Liquidity
Fund.
For
the
six
months ended
March
31,
2024, management
fees
paid
were
reduced
by $504 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
21
Morgan
Stanley
ETF
Trust
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
six
months ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
The
tax
year
ended
September
30,
2023 remains
subject
to
examination
by
taxing
authorities.
The
tax
character
of
distributions
paid
may
differ
from
the
character
of
distributions
shown
for
GAAP
purposes
due
to
short-term
capital
gains
being
treated
as
ordinary
income
for
tax
purposes.
The
tax
character
of
distributions
paid
during
fiscal
year 2023
was
as
follows: 
The
amount
and
character
of
income
and
gains
to
be
distrib-
uted
are
determined
in
accordance
with
income
tax
regulations
which
may
differ
from
GAAP.
These
book/tax
differences
are
either
considered
temporary
or
permanent
in
nature. 
Temporary
differences
are
attributable
to
differing
book
and
tax
treatments
for
the
timing
of
the
recognition
of
gains
(loss-
es)
on
certain
investment
transactions
and
the
timing
of
the
deductibility
of
certain
expenses. 
The
Fund
had
no
permanent
differences
causing
reclassifica-
tions
among
the
components
of
net
assets
for
the
year ended
September
30,
2023. 
At
September
30,
2023,
the
components
of
distributable
earn-
ings
for
the
Fund
on
a
tax
basis
were
as
follows: 
At
September
30,
2023,
the
Fund
had
available
for
fed-
eral
income
tax
purposes
unused
short-term
capital
losses
of $579,509 that
do
not
have
an
expiration
date. 
To
the
extent
that
capital
loss
carryforwards
are
used
to
offset
any
future
capital
gains
realized,
no
capital
gains
tax
liability
will
be
incurred
by
the
Fund
for
gains
realized
and
not
distrib-
uted.
To
the
extent
that
capital
gains
are
offset,
such
gains
will
not
be
distributed
to
the
shareholders. 
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
Securities
in
the
Fund’s
portfolio
may
underperform
due
to
inflation
(or
expectations
for
inflation),
interest
rates,
global
demand
for
particular
Affiliated
Investment
Company
Value
September
30,
2023
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
456
$
3,112
$
3,005
$
17
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
563
2023
Distributions
Paid
From:
Ordinary
Long-Term
Income
Capital
Gain
$1,150,871
$–
Undistributed
Undistributed
Ordinary
Long-Term
Income
Capital
Gain
$137,914
$–
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
22
Morgan
Stanley
ETF
Trust
products
or
resources,
natural
disasters
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
Tracking
Error
Risk:
Tracking
error
risk
refers
to
the
risk
that
the
Fund’s
performance
may
not
match
or
correlate
to
that
of
the
index
it
attempts
to
track,
either
on
a
daily
or
aggregate
basis.
Tracking
error
may
occur
because
of
transac-
tion
costs,
the
Fund’s
holding
of
cash,
differences
in
accrual
of
dividends,
changes
to
the
index
or
the
need
to
meet
new
or
existing
regulatory
requirements.
Factors
such
as
Fund
expens-
es,
imperfect
correlation
between
the
Fund’s
investments
and
the
index,
rounding
of
share
prices,
changes
to
the
composition
of
the
index,
regulatory
policies,
limitations
on
Fund
invest-
ments
imposed
by
Fund
diversification
and/or
concentration
policies,
high
portfolio
turnover
rate
and
the
use
of
leverage
all
contribute
to
tracking
error.
Unlike
the
Fund,
the
returns
of
the
index
are
not
reduced
by
investment
and
other
operating
expenses,
including
the
trading
costs
associated
with
imple-
menting
changes
to
its
portfolio
of
investments.
Tracking
error
risk
may
cause
the
Fund’s
performance
to
be
less
than
expected.
Tracking
error
risk
may
be
heightened
during
times
of
market
volatility,
unusual
market
conditions
or
other
abnormal
cir-
cumstances.
The
Fund
may
be
required
to
deviate
its
invest-
ments
from
the
securities
and
relative
weightings
of
the
index
to
comply
with
applicable
laws
and
regulations
or
because
of
market
restrictions
or
other
legal
reasons,
including
regulatory
limits
or
other
restrictions
on
securities
that
may
be
purchased
by
the
Adviser
and
its
affiliates.
If
the
Fund
uses
a
sampling
method
of
indexing,
it
may
have
a
larger
tracking
error
than
if
it
used
a
replication
method
of
indexing.
Index
Related
Risk:
The
Fund’s
return
may
not
track
the
return
of
the
index
for
a
number
of
reasons
and
therefore
may
not
achieve
its
investment
objective.
For
example,
the
Fund
incurs
a
number
of
operating
expenses
not
applicable
to
the
index,
and
incurs
costs
in
buying
and
selling
securities,
espe-
cially
when
rebalancing
the
Fund’s
securities
holdings
to
reflect
changes
in
the
composition
of
the
index.
In
addition,
the
Fund’s
return
may
differ
from
the
return
of
the
index
because
of,
among
other
things,
pricing
differences
and
the
inability
to
purchase
certain
securities
included
in
the
index
due
to
regu-
latory
or
other
restrictions.
In
addition,
because
the
Fund
uses
a
representative
sampling
approach,
the
Fund
can
be
expected
to
be
less
correlated
with
the
return
of
the
index
as
when
a
fund
purchases
all
of
the
securities
in
an
index
in
the
proportions
in
which
they
are
rep-
resented
in
the
index.
Errors
in
the
construction
or
calculation
of
the
index
may
occur
from
time
to
time.
Any
such
errors
may
not
be
identified
and
corrected
by
the
index
provider
for
some
period
of
time,
which
may
have
an
adverse
impact
on
the
Fund
and
its
shareholders.
The
risk
that
the
Fund
may
not
track
the
performance
of
the
index
may
be
heightened
during
times
of
increased
market
volatility
or
other
unusual
market
conditions. 
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
To
the
extent
that
these
inter-
mediaries
exit
the
business
or
are
unable
to
or
choose
not
to
proceed
with
creation
and/or
redemption
orders
with
respect
to
the
Fund,
such
as
during
periods
of
market
stress,
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.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
23
Morgan
Stanley
ETF
Trust
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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.
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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.
24
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
25
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
The
Adviser
has
engaged
Calvert
to
provide
proxy
voting
services
with
respect
to
the
Trust.
The
Adviser’s
Proxy
Voting
Policy
speci-
fies
that
each
Fund
will
follow
Calvert’s
Proxy
Voting
Policies
and
Procedures
and
Global
Proxy
Voting
Guidelines.
When
available,
the
Trust’s
proxy
voting
record
for
the
most
recent
12-month
period
ending
June
30,
as
filed
with
the
SEC,
will
be
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
will
also
be
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
26
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
27
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
28
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
29
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
ETFCALUSLGCAPCRISAN
6598318
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
NYSE
Arca:
CDEI
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
10
Statement
of
Operations
....................................................................................
11
Statements
of
Changes
in
Net
Assets
.......................................................................
12
Financial
Highlights
.........................................................................................
13
Notes
to
Financial
Statements
...............................................................................
14
Liquidity
Risk
Management
Program
.........................................................................
20
Important
Notices
..........................................................................................
21
U.S.
Customer
Privacy
Notice
...............................................................................
22
Trustees
and
Officers
Information
...........................................................................
25
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Calvert
US
Large-Cap
Diversi-
ty,
Equity
and
Inclusion
Index
ETF (the
“Fund”)
performed
during
the
latest
six-month
period.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
six-month
period
ended
March
31,
2024 and
held
for
the
entire
six-month
period.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(
10/1/23
)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
$1,000.00
$1,214.00
$1,024.30
$0.77
$0.71
0.14%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
183/366
(to
reflect
the
most
recent
one-half
year
period).
**
Annualized.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
Morgan
Stanley
ETF
Trust
*
Cumulative
Return
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im
.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Russell
1000
®
Index
(1)
and
the
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
(2)
Period
Ended
March
31,
2024
Total
Returns
Average
Annual
Six
Months
*
One
Year
Since
Inception
(3)
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
-
NAV
(4)
21.40%
27.00%
27.43%
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
-
Market
Price
(4)
21.51%
27.14%
27.53%
Russell
1000
®
Index
23.49%
29.87%
27.61%
Calvert
US
Large-Cap
Diversity
Research
Index
21.52%
27.21%
27.68%
(1)
The
Russell
1000
®
Index
is
an
unmanaged
index
of
1,000
U.S.
large-cap
stocks.
The
Russell
1000
®
Index
is
an
index
of
approximately
1,000
of
the
largest
U.S.
companies
based
on
a
combination
of
market
capitalization
and
current
index
membership.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
(2)
The
Calvert
US
Large-Cap
Diversity
Research
Index
is
composed
of
companies
that
operate
their
businesses
in
a
manner
that
is
consistent
with
the
Calvert
Principles
and
are
selected
from
the
universe
of
the
1,000
largest
publicly
traded
US
companies
by
market
capitalization.
As
described
in
the
Index
Methodology
and
as
determined
by
Calvert,
Index
components
must
meet
certain
criteria
relating
to
leadership
in
having
a
diverse
workforce
and
an
equal
and
inclusive
work
culture,
or
demonstrate
significant
improvement
in
diversity
practices.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
Historical
performance
of
the
index
illustrates
market
trends
and
does
not
represent
the
past
or
future
performance
of
the
fund.
(3)
For
comparative
purposes,
average
annual
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(4)
Commenced
operations
on
January
30,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Common
Stocks
(99.6%)
Air
Freight
&
Logistics
(
0
.6
%
)
Expeditors
International
of
Washington,
Inc.
232
$
28,204
United
Parcel
Service,
Inc.,
Class
 B
1,180
175,384
203,588
Automobile
Components
(
0
.1
%
)
Aptiv
plc
(a)
451
35,922
BorgWarner,
Inc.
370
12,854
48,776
Automobiles
(
0
.0
%
)
(b)
Thor
Industries,
Inc.
82
9,622
Banks
(
5
.6
%
)
Bank
of
America
Corp.
11,178
423,870
Citigroup,
Inc.
3,096
195,791
Comerica,
Inc.
213
11,713
Commerce
Bancshares,
Inc.
204
10,853
Cullen/Frost
Bankers,
Inc.
97
10,919
East
West
Bancorp,
Inc.
227
17,958
First
Citizens
BancShares,
Inc.,
Class
 A
18
29,430
First
Financial
Bankshares,
Inc.
223
7,317
First
Horizon
Corp.
894
13,768
JPMorgan
Chase
&
Co.
4,635
928,391
KeyCorp
1,511
23,889
M&T
Bank
Corp.
269
39,123
New
York
Community
Bancorp,
Inc.
1,152
3,709
Pinnacle
Financial
Partners,
Inc.
122
10,477
PNC
Financial
Services
Group,
Inc.
(The)
643
103,909
Regions
Financial
Corp.
1,489
31,329
Synovus
Financial
Corp.
234
9,374
U.S.
Bancorp
2,525
112,867
Western
Alliance
Bancorp
176
11,297
Zions
Bancorp
NA
237
10,286
2,006,270
Beverages
(
2
.6
%
)
Celsius
Holdings,
Inc.
(a)
250
20,730
Coca-Cola
Co.
(The)
6,318
386,535
Keurig
Dr
Pepper,
Inc.
1,602
49,134
Monster
Beverage
Corp.
(a)
1,218
72,203
PepsiCo,
Inc.
2,225
389,397
917,999
Biotechnology
(
3
.8
%
)
AbbVie,
Inc.
2,865
521,717
Amgen,
Inc.
868
246,790
Biogen,
Inc.
(a)
234
50,457
Gilead
Sciences,
Inc.
2,021
148,038
Moderna,
Inc.
(a)
545
58,075
Regeneron
Pharmaceuticals,
Inc.
(a)
171
164,586
Vertex
Pharmaceuticals,
Inc.
(a)
418
174,728
1,364,391
Broadline
Retail
(
0
.2
%
)
eBay,
Inc.
839
44,282
Etsy,
Inc.
(a)
191
13,126
57,408
Building
Products
(
0
.7
%
)
AAON,
Inc.
109
9,603
AO
Smith
Corp.
196
17,534
Shares
Value
Carrier
Global
Corp.
1,355
$
78,766
Johnson
Controls
International
plc
1,098
71,721
Lennox
International,
Inc.
52
25,416
Owens
Corning
140
23,352
Trex
Co.,
Inc.
(a)
175
17,456
243,848
Capital
Markets
(
2
.3
%
)
Affiliated
Managers
Group,
Inc.
52
8,708
Ameriprise
Financial,
Inc.
162
71,027
Bank
of
New
York
Mellon
Corp.
(The)
1,222
70,412
Carlyle
Group,
Inc.
(The)
308
14,448
Evercore,
Inc.,
Class
 A
58
11,170
FactSet
Research
Systems,
Inc.
62
28,172
Franklin
Resources,
Inc.
464
13,043
Interactive
Brokers
Group,
Inc.,
Class
 A
167
18,656
Intercontinental
Exchange,
Inc.
922
126,710
Jefferies
Financial
Group,
Inc.
253
11,157
MarketAxess
Holdings,
Inc.
60
13,155
Moody's
Corp.
257
101,009
Morningstar,
Inc.
43
13,260
Nasdaq,
Inc.
573
36,156
Raymond
James
Financial,
Inc.
306
39,297
S&P
Global,
Inc.
510
216,980
State
Street
Corp.
487
37,655
831,015
Chemicals
(
0
.6
%
)
Ashland,
Inc.
80
7,790
Balchem
Corp.
52
8,057
Cabot
Corp.
89
8,206
Celanese
Corp.,
Class
 A
176
30,247
Eastman
Chemical
Co.
189
18,941
Ecolab,
Inc.
412
95,131
FMC
Corp.
201
12,804
Huntsman
Corp.
263
6,846
International
Flavors
&
Fragrances,
Inc.
373
32,074
220,096
Commercial
Services
&
Supplies
(
0
.9
%
)
Clean
Harbors,
Inc.
(a)
82
16,507
Copart,
Inc.
(a)
1,417
82,073
Republic
Services,
Inc.,
Class
 A
335
64,132
Rollins,
Inc.
461
21,331
Tetra
Tech,
Inc.
86
15,885
Waste
Management,
Inc.
651
138,761
338,689
Communications
Equipment
(
1
.0
%
)
Ciena
Corp.
(a)
232
11,472
Cisco
Systems,
Inc.
6,562
327,510
Juniper
Networks,
Inc.
516
19,123
358,105
Construction
&
Engineering
(
0
.3
%
)
AECOM
220
21,578
EMCOR
Group,
Inc.
75
26,265
Quanta
Services,
Inc.
234
60,793
Valmont
Industries,
Inc.
32
7,305
115,941
Construction
Materials
(
0
.2
%
)
Summit
Materials,
Inc.,
Class
 A
(a)
193
8,602
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Construction
Materials
(cont’d)
Vulcan
Materials
Co.
214
$
58,405
67,007
Consumer
Finance
(
0
.8
%
)
American
Express
Co.
941
214,256
Credit
Acceptance
Corp.
(a)
10
5,516
Discover
Financial
Services
404
52,960
OneMain
Holdings,
Inc.
193
9,860
SoFi
Technologies,
Inc.
(a)
1,586
11,578
294,170
Consumer
Staples
Distribution
&
Retail
(
2
.4
%
)
Casey's
General
Stores,
Inc.
60
19,107
Costco
Wholesale
Corp.
717
525,296
Dollar
General
Corp.
355
55,401
Kroger
Co.
(The)
1,160
66,271
Sprouts
Farmers
Market,
Inc.
(a)
164
10,575
Sysco
Corp.
807
65,512
Target
Corp.
748
132,553
874,715
Containers
&
Packaging
(
0
.3
%
)
AptarGroup,
Inc.
107
15,396
Ball
Corp.
509
34,286
Graphic
Packaging
Holding
Co.
490
14,298
Sealed
Air
Corp.
232
8,631
Sonoco
Products
Co.
158
9,139
Westrock
Co.
414
20,472
102,222
Distributors
(
0
.1
%
)
LKQ
Corp.
430
22,966
Diversified
Consumer
Services
(
0
.1
%
)
Bright
Horizons
Family
Solutions,
Inc.
(a)
93
10,543
Service
Corp.
International
230
17,068
27,611
Diversified
Telecommunication
Services
(
0
.8
%
)
Verizon
Communications,
Inc.
6,826
286,419
Electric
Utilities
(
0
.5
%
)
Avangrid,
Inc.
111
4,045
Eversource
Energy
564
33,710
Exelon
Corp.
1,621
60,901
IDACORP,
Inc.
82
7,617
NRG
Energy,
Inc.
330
22,338
Portland
General
Electric
Co.
163
6,846
Xcel
Energy,
Inc.
900
48,375
183,832
Electrical
Equipment
(
0
.5
%
)
Emerson
Electric
Co.
923
104,687
nVent
Electric
plc
262
19,755
Rockwell
Automation,
Inc.
186
54,187
Sensata
Technologies
Holding
plc
244
8,964
Sunrun,
Inc.
(a)
360
4,745
192,338
Electronic
Equipment,
Instruments
&
Components
(
0
.7
%
)
Advanced
Energy
Industries,
Inc.
57
5,813
Amphenol
Corp.,
Class
 A
968
111,659
Avnet,
Inc.
146
7,239
Shares
Value
Badger
Meter,
Inc.
47
$
7,605
Belden,
Inc.
68
6,297
CDW
Corp.
217
55,504
IPG
Photonics
Corp.
(a)
49
4,444
Trimble,
Inc.
(a)
397
25,551
Zebra
Technologies
Corp.,
Class
 A
(a)
83
25,019
249,131
Energy
Equipment
&
Services
(
0
.1
%
)
Baker
Hughes
Co.,
Class
 A
1,623
54,370
Entertainment
(
2
.5
%
)
Atlanta
Braves
Holdings,
Inc.,
Class
 C
(a)
80
3,125
Electronic
Arts,
Inc.
393
52,139
Liberty
Media
Corp-Liberty
Formula
One,
Class
 A
(a)
387
22,732
Liberty
Media
Corp-Liberty
Live,
Class
 A
(a)
110
4,658
Netflix,
Inc.
(a)
696
422,702
Roku,
Inc.,
Class
 A
(a)
204
13,295
Walt
Disney
Co.
(The)
2,977
364,266
Warner
Bros
Discovery,
Inc.
(a)
3,775
32,956
915,873
Financial
Services
(
4
.9
%
)
Equitable
Holdings,
Inc.
533
20,259
Fidelity
National
Information
Services,
Inc.
934
69,284
Fiserv,
Inc.
(a)
952
152,149
Jack
Henry
&
Associates,
Inc.
118
20,500
Mastercard,
Inc.,
Class
 A
1,344
647,230
MGIC
Investment
Corp.
431
9,637
PayPal
Holdings,
Inc.
(a)
1,725
115,558
Radian
Group,
Inc.
244
8,167
Visa,
Inc.,
Class
 A
2,561
714,724
1,757,508
Food
Products
(
1
.2
%
)
Bunge
Global
SA
231
23,682
Campbell
Soup
Co.
320
14,224
Conagra
Brands,
Inc.
773
22,912
General
Mills,
Inc.
919
64,302
Hershey
Co.
(The)
242
47,069
JM
Smucker
Co.
(The)
168
21,146
Kellanova
464
26,583
Kraft
Heinz
Co.
(The)
1,302
48,044
Mondelez
International,
Inc.,
Class
 A
2,183
152,810
420,772
Gas
Utilities
(
0
.1
%
)
ONE
Gas,
Inc.
91
5,872
Southwest
Gas
Holdings,
Inc.
99
7,537
UGI
Corp.
339
8,319
21,728
Ground
Transportation
(
0
.7
%
)
Avis
Budget
Group,
Inc.
32
3,919
Union
Pacific
Corp.
987
242,733
246,652
Health
Care
Equipment
&
Supplies
(
3
.0
%
)
Abbott
Laboratories
2,797
317,907
Align
Technology,
Inc.
(a)
114
37,383
Becton
Dickinson
&
Co.
469
116,054
Edwards
Lifesciences
Corp.
(a)
961
91,833
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Health
Care
Equipment
&
Supplies
(cont’d)
Globus
Medical,
Inc.,
Class
 A
(a)
182
$
9,762
Haemonetics
Corp.
(a)
82
6,999
Hologic,
Inc.
(a)
375
29,235
ICU
Medical,
Inc.
(a)
33
3,542
Insulet
Corp.
(a)
113
19,368
iRhythm
Technologies,
Inc.
(a)
49
5,684
Medtronic
plc
2,155
187,808
Neogen
Corp.
(a)
351
5,539
Penumbra,
Inc.
(a)
60
13,391
Stryker
Corp.
579
207,207
Zimmer
Biomet
Holdings,
Inc.
333
43,949
1,095,661
Health
Care
Providers
&
Services
(
3
.9
%
)
AMN
Healthcare
Services,
Inc.
(a)
63
3,938
Centene
Corp.
(a)
860
67,493
Cigna
Group
(The)
467
169,610
CVS
Health
Corp.
2,040
162,710
Elevance
Health,
Inc.
376
194,971
Ensign
Group,
Inc.
(The)
89
11,073
Laboratory
Corp.
of
America
Holdings
136
29,711
Quest
Diagnostics,
Inc.
178
23,694
UnitedHealth
Group,
Inc.
1,495
739,576
1,402,776
Hotels,
Restaurants
&
Leisure
(
1
.6
%
)
Airbnb,
Inc.,
Class
 A
(a)
674
111,183
Booking
Holdings,
Inc.
55
199,534
Domino's
Pizza,
Inc.
56
27,825
Hilton
Worldwide
Holdings,
Inc.
401
85,537
Marriott
International,
Inc.,
Class
 A
395
99,663
Wendy's
Co.
(The)
277
5,219
Yum!
Brands,
Inc.
456
63,224
592,185
Household
Durables
(
0
.1
%
)
Meritage
Homes
Corp.
57
10,001
Newell
Brands,
Inc.
706
5,669
Tempur
Sealy
International,
Inc.
272
15,455
TopBuild
Corp.
(a)
51
22,478
53,603
Household
Products
(
0
.6
%
)
Clorox
Co.
(The)
201
30,775
Colgate-Palmolive
Co.
1,335
120,217
Kimberly-Clark
Corp.
546
70,625
221,617
Independent
Power
and
Renewable
Electricity
Producers
(
0
.1
%
)
AES
Corp.
(The)
1,126
20,189
Ormat
Technologies,
Inc.
86
5,692
25,881
Insurance
(
2
.5
%
)
Aflac,
Inc.
846
72,638
Allstate
Corp.
(The)
425
73,529
First
American
Financial
Corp.
160
9,768
Hartford
Financial
Services
Group,
Inc.
(The)
481
49,567
Lincoln
National
Corp.
272
8,685
Marsh
&
McLennan
Cos.,
Inc.
797
164,166
MetLife,
Inc.
993
73,591
Primerica,
Inc.
56
14,166
Shares
Value
Principal
Financial
Group,
Inc.
381
$
32,884
Progressive
Corp.
(The)
948
196,065
Prudential
Financial,
Inc.
582
68,327
Reinsurance
Group
of
America,
Inc.
106
20,445
RenaissanceRe
Holdings
Ltd.
82
19,272
Selective
Insurance
Group,
Inc.
97
10,590
Travelers
Cos.,
Inc.
(The)
371
85,382
White
Mountains
Insurance
Group
Ltd.
4
7,177
906,252
Interactive
Media
&
Services
(
0
.1
%
)
Pinterest,
Inc.,
Class
 A
(a)
951
32,971
IT
Services
(
0
.6
%
)
Akamai
Technologies,
Inc.
(a)
241
26,211
Amdocs
Ltd.
189
17,080
Cognizant
Technology
Solutions
Corp.,
Class
 A
807
59,145
Gartner,
Inc.
(a)
123
58,631
Okta,
Inc.,
Class
 A
(a)
252
26,364
Twilio,
Inc.,
Class
 A
(a)
280
17,122
204,553
Leisure
Products
(
0
.1
%
)
Brunswick
Corp.
109
10,521
Mattel,
Inc.
(a)
568
11,252
21,773
Life
Sciences
Tools
&
Services
(
0
.8
%
)
Agilent
Technologies,
Inc.
474
68,972
Charles
River
Laboratories
International,
Inc.
(a)
82
22,218
Fortrea
Holdings,
Inc.
(a)
144
5,780
Illumina,
Inc.
(a)
257
35,291
IQVIA
Holdings,
Inc.
(a)
292
73,844
Waters
Corp.
(a)
96
33,046
West
Pharmaceutical
Services,
Inc.
118
46,694
285,845
Machinery
(
1
.7
%
)
Cummins,
Inc.
227
66,885
Deere
&
Co.
422
173,332
Flowserve
Corp.
212
9,684
Fortive
Corp.
568
48,859
Franklin
Electric
Co.,
Inc.
64
6,836
IDEX
Corp.
123
30,014
Illinois
Tool
Works,
Inc.
484
129,872
ITT,
Inc.
132
17,956
Lincoln
Electric
Holdings,
Inc.
90
22,990
Nordson
Corp.
83
22,787
Stanley
Black
&
Decker,
Inc.
245
23,993
Westinghouse
Air
Brake
Technologies
Corp.
285
41,519
594,727
Media
(
0
.4
%
)
Cable
One,
Inc.
7
2,962
Interpublic
Group
of
Cos.,
Inc.
(The)
613
20,002
Liberty
Broadband
Corp.,
Class
 C
(a)
211
12,075
Nexstar
Media
Group,
Inc.,
Class
 A
51
8,787
Omnicom
Group,
Inc.
318
30,770
Paramount
Global,
Class
 B
969
11,405
Trade
Desk,
Inc.
(The),
Class
 A
(a)
716
62,593
148,594
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Metals
&
Mining
(
0
.1
%
)
ATI,
Inc.
(a)
205
$
10,490
Commercial
Metals
Co.
187
10,990
Reliance,
Inc.
93
31,079
52,559
Multi-Utilities
(
0
.6
%
)
Black
Hills
Corp.
110
6,006
CMS
Energy
Corp.
475
28,662
DTE
Energy
Co.
334
37,455
NiSource,
Inc.
731
20,219
Sempra
1,026
73,698
WEC
Energy
Group,
Inc.
512
42,045
208,085
Passenger
Airlines
(
0
.1
%
)
Alaska
Air
Group,
Inc.
(a)
195
8,383
Southwest
Airlines
Co.
964
28,139
36,522
Personal
Care
Products
(
0
.2
%
)
elf
Beauty,
Inc.
(a)
86
16,859
Estee
Lauder
Cos.,
Inc.
(The),
Class
 A
377
58,114
74,973
Pharmaceuticals
(
6
.1
%
)
Bristol-Myers
Squibb
Co.
3,282
177,983
Eli
Lilly
&
Co.
1,379
1,072,807
Merck
&
Co.,
Inc.
4,107
541,919
Organon
&
Co.
431
8,103
Perrigo
Co.
plc
219
7,049
Pfizer,
Inc.
9,167
254,384
Zoetis,
Inc.,
Class
 A
743
125,723
2,187,968
Professional
Services
(
1
.0
%
)
Automatic
Data
Processing,
Inc.
664
165,827
Broadridge
Financial
Solutions,
Inc.
190
38,923
Dayforce,
Inc.
(a)
246
16,288
Equifax,
Inc.
200
53,504
ExlService
Holdings,
Inc.
(a)
254
8,077
FTI
Consulting,
Inc.
(a)
57
11,987
Maximus,
Inc.
98
8,222
Paycom
Software,
Inc.
82
16,319
Robert
Half,
Inc.
166
13,160
Science
Applications
International
Corp.
84
10,953
TriNet
Group,
Inc.
51
6,757
350,017
Real
Estate
Management
&
Development
(
0
.2
%
)
CoStar
Group,
Inc.
(a)
655
63,273
Zillow
Group,
Inc.,
Class
 C
(a)
334
16,293
79,566
Semiconductors
&
Semiconductor
Equipment
(
6
.7
%
)
Analog
Devices,
Inc.
803
158,825
Broadcom,
Inc.
745
987,430
First
Solar,
Inc.
(a)
163
27,514
Intel
Corp.
6,863
303,139
KLA
Corp.
219
152,987
Lam
Research
Corp.
212
205,973
Micron
Technology,
Inc.
1,781
209,962
MKS
Instruments,
Inc.
108
14,364
Shares
Value
Power
Integrations,
Inc.
91
$
6,511
QUALCOMM,
Inc.
1,809
306,264
Silicon
Laboratories,
Inc.
(a)
51
7,330
Universal
Display
Corp.
71
11,960
2,392,259
Software
(
17
.9
%
)
Adobe,
Inc.
(a)
729
367,853
ANSYS,
Inc.
(a)
141
48,950
Atlassian
Corp.,
Class
 A
(a)
253
49,363
Box,
Inc.,
Class
 A
(a)
224
6,344
DocuSign,
Inc.,
Class
 A
(a)
328
19,532
Dropbox,
Inc.,
Class
 A
(a)
410
9,963
Elastic
NV
(a)
132
13,232
Fair
Isaac
Corp.
(a)
39
48,735
Fortinet,
Inc.
(a)
1,023
69,881
Gen
Digital,
Inc.
941
21,078
Guidewire
Software,
Inc.
(a)
131
15,289
HubSpot,
Inc.
(a)
79
49,498
Manhattan
Associates,
Inc.
(a)
99
24,773
Microsoft
Corp.
11,887
5,001,100
Palo
Alto
Networks,
Inc.
(a)
518
147,179
Roper
Technologies,
Inc.
173
97,025
ServiceNow,
Inc.
(a)
331
252,354
Synopsys,
Inc.
(a)
247
141,161
Teradata
Corp.
(a)
155
5,994
Tyler
Technologies,
Inc.
(a)
68
28,901
6,418,205
Specialty
Retail
(
2
.9
%
)
Advance
Auto
Parts,
Inc.
100
8,509
Bath
&
Body
Works,
Inc.
365
18,257
Home
Depot,
Inc.
(The)
1,612
618,363
Ross
Stores,
Inc.
536
78,663
TJX
Cos.,
Inc.
(The)
1,848
187,424
Tractor
Supply
Co.
175
45,801
Ulta
Beauty,
Inc.
(a)
79
41,308
Williams-Sonoma,
Inc.
98
31,118
1,029,443
Technology
Hardware,
Storage
&
Peripherals
(
12
.6
%
)
Apple,
Inc.
25,055
4,296,431
Dell
Technologies,
Inc.,
Class
 C
384
43,818
Hewlett
Packard
Enterprise
Co.
2,102
37,269
HP,
Inc.
1,401
42,338
NetApp,
Inc.
333
34,955
Seagate
Technology
Holdings
plc
338
31,451
Western
Digital
Corp.
(a)
521
35,553
4,521,815
Textiles,
Apparel
&
Luxury
Goods
(
0
.5
%
)
Deckers
Outdoor
Corp.
(a)
41
38,592
Lululemon
Athletica,
Inc.
(a)
179
69,926
PVH
Corp.
96
13,499
Ralph
Lauren
Corp.,
Class
 A
61
11,453
Skechers
USA,
Inc.,
Class
 A
(a)
214
13,110
Tapestry,
Inc.
371
17,615
VF
Corp.
595
9,127
173,322
Trading
Companies
&
Distributors
(
0
.5
%
)
Applied
Industrial
Technologies,
Inc.
62
12,248
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Trading
Companies
&
Distributors
(cont’d)
Fastenal
Co.
928
$
71,586
GATX
Corp.
57
7,639
MSC
Industrial
Direct
Co.,
Inc.,
Class
 A
72
6,987
WW
Grainger,
Inc.
73
74,263
172,723
Water
Utilities
(
0
.1
%
)
American
Water
Works
Co.,
Inc.
316
38,618
Essential
Utilities,
Inc.
443
16,413
55,031
Total
Common
Stocks
(Cost
$29,976,264)
35,771,988
Short-Term
Investment
(
0
.3
%
)
Investment
Company
(0.3%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(
See
Note
G
)
(Cost
$98,418)
98,418
98,418
Total
Investments
(
99
.9
%
)
(Cost
$
30,074,682
)
(c)
35,870,406
Other
Assets
in
Excess
of
Liabilities
(0.1%)
32,117
NET
ASSETS
(100.0%)
$35,902,523
(a)
Non-income
producing
security.
(b)
Amount
is
less
than
0.05%.
(c)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$30,074,682.
The
aggregate
gross
unrealized
appreciation
is
$6,355,571
and
the
aggregate
gross
unrealized
depreciation
is
$559,847,
resulting
in
net
unrealized
appreciation
of
$5,795,724.
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
51
.1
%
Software
17
.9
Technology
Hardware,
Storage
&
Peripherals
12
.6
Semiconductors
&
Semiconductor
Equipment
6
.7
Pharmaceuticals
6
.1
Banks
5
.6
Total
Investments
100
.0
%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$29,976,264)
$
35,771,988
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$98,418)
98,418
Total
Investments
in
Securities,
at
Value
(Cost
$30,074,682)
35,870,406
Cash
11,196
Dividends
Receivable
25,163
Total
Assets
35,906,765
Liabilities:
Payable
for
Management
Fee
4,242
Total
Liabilities
4,242
Net
Assets
$
35,902,523
Net
Assets
Consist
of:
Paid-in-Capital
$
29,568,207
Total
Distributable
Earnings
6,334,316
Net
Assets
$
35,902,523
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
550,000
Net
Asset
Value
Per
Share
$
65
.28
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Six
Months
Ended
March
31,
2024
Investment
Income:
Dividends
from
Securities
of
Unaffiliated
Issuers
$
244,143
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
2,602
Non-Cash
dividends
19,797
Total
Investment
Income
266,542
Expenses:
Management
Fee
(Note
B)
22,075
Total
Expenses
22,075
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(
76
)
Net
Expenses
21,999
Net
Investment
Income
244,543
Realized
Gain
(Loss):
Investments
Sold
27,473
In-kind
Redemptions
on
Investments
790,917
Net
Realized
Gain
818,390
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
4,919,752
Net
Change
in
Unrealized
Appreciation
(Depreciation)
4,919,752
Net
Realized
Gain
and
Change
in
Unrealized
Appreciation
(Depreciation)
5,738,142
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
5,982,685
Semi-Annual
Report
March
31,
2024
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statements
of
Changes
in
Net
Assets
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
^
to
September
30,
2023
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
244,543
$
221,453
Net
Realized
Gain
818,390
1,026,249
Net
Change
in
Unrealized
Appreciation
(Depreciation)
4,919,752
875,972
Net
Increase
in
Net
Assets
Resulting
from
Operations
5,982,685
2,123,674
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(
239,445
)
(
203,084
)
Total
Dividends
and
Distributions
to
Shareholders
(
239,445
)
(
203,084
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Subscribed
In-Kind
8,976,649
8,130,996
Redeemed
In-Kind
(
3,192,988
)
(
5,675,964
)
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
5,783,661
22,455,032
Total
Increase
in
Net
Assets
11,526,901
24,375,622
Net
Assets:
Beginning
of
Period
24,375,622
End
of
Period
$
35,902,523
$
24,375,622
Capital
Share
Transactions:
Beginning
of
Period
450,000
Shares
Subscribed
400,000
Shares
Subscribed
In-Kind
150,000
150,000
Shares
Redeemed
In-Kind
(
50,000
)
(
100,000
)
Shares
Outstanding,
End
of
Period
Net
Increase
in
550,000
450,000
^
Commencement
of
Operations
(1)
Total
consists
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
(1)
to
September
30,
2023
Net
Asset
Value,
Beginning
of
Period
$
54
.17‌
$
50
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
0
.47‌
0
.49‌
Net
Realized
and
Unrealized
Gain
11
.10‌
4
.13‌
Total
from
Investment
Operations
11
.57‌
4
.62‌
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
0
.46‌
)
(
0
.45‌
)
Net
Asset
Value,
End
of
Period
$
65
.28‌
$
54
.17‌
Total
Return
(3)
21
.40‌
%
(4)
9
.23‌
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$35,903
$24,376
Net
Assets,
End
of
Period
(Thousands)
$
35,903‌
$
24,376‌
Ratio
of
Expenses
0
.14‌
%
(5)
(6)
0
.14‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
1
.55‌
%
(5)
(6)
1
.36‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.00‌
%
(5)
(7)
0
.00‌
%
(5)
(7)
Portfolio
Turnover
Rate
4‌
%
(4)
(8)
19‌
%
(4)
(8)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(7)
Amount
is
less
than
0.005%.
(8)
In-kind
transactions
are
not
included
in
portfolio
turnover
calculations.
14
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
"Trust")
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust and
is
authorized
to establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Act").
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Calvert
US
Large-Cap
Diversity,
Equity
and
Inclusion
Index
ETF (the
"Fund"),
which
seeks
to
track
the
performance
of
the
Calvert
US
Large-Cap
Diversity
Research
Index.
The
Fund
is
non-di-
versified.
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
An
equity
portfolio
security
list-
ed
or
traded
on
an
exchange
is
valued
at
its
latest
reported
sales
price
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price),
and
if
there
were
no
sales
on
a
given
day
and
if
there
is
no
official
ex-
change
closing
price
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
relevant
ex-
changes.
If
only
bid
prices
are
available
then
the
latest
bid
price
may
be
used.
Listed
equity
securities
not
traded
on
the
valuation
date
with
no
reported
bid
and
asked
prices
available
on
the
exchange
are
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers.
In
cases
where
a
securi-
ty
is
traded
on
more
than
one
exchange,
the
security
is
valued
on
the
exchange
designated
as
the
primary
market;
(2)
all
other
equity
portfolio
securities
for
which
over-the-
counter
(“OTC”)
market
quotations
are
readily
available
are
valued
at
the
latest
reported
sales
price
(or
at
the
mar-
ket
official
closing
price
if
such
market
reports
an
official
closing
price),
and
if
there
was
no
trading
in
the
security
on
a
given
day
and
if
there
is
no
official
closing
price
from
relevant
markets
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
rel-
evant
markets.
An
unlisted
equity
security
that
does
not
trade
on
the
valuation
date
and
for
which
bid
and
asked
prices
from
the
relevant
markets
are
unavailable
is
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers;
(3)
certain
portfolio
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
whol-
ly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable brokers/dealers;
(4)
when
market
quo-
tations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circumstances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
market
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees; and
(5)
investments
in
mutual
funds,
including
the
Morgan
Stanley
Institu-
tional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
15
Morgan
Stanley
ETF
Trust
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
 Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
4.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
quarterly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
5.
Security
Transactions
and Income:
Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
at
fair
value.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:  
Common
Stocks
$
35,772‌
(1)
$
$
$
35,772
Short-Term
Investment
Investment
Company
98‌
98
Total
Assets
$
35,870‌
$—
$—
$35,870
(1)
The
level
classification
by
major
category
of
investments
is
the
same
as
the
category
presentation
in
the
Portfolio
of
Investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
16
Morgan
Stanley
ETF
Trust
monthly
at
the
annual
rate
of
0.14% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 50,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statements
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the six
months
ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $1,227,519
and
$1,310,296,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
for
the
six
months
ended
March
31,
2024. Purchase
and
Sales
related
to
In-Kind
transactions
were
$8,947,919 and
$3,152,689 for
the six
months ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
investment
in
the
Liquidity
Fund.
For
the
six
months ended
March
31,
2024, management
fees
paid
were
reduced
by $76 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
six
months ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
The
tax
year
ended
September
30,
2023 remains
subject
to
examination
by
taxing
authorities.
The
tax
character
of
distributions
paid
may
differ
from
the
character
of
distributions
shown
for
GAAP
purposes
due
to
short-term
capital
gains
being
treated
as
ordinary
income
for
tax
purposes.
The
tax
character
of
distributions
paid
during
fiscal
year 2023
was
as
follows: 
The
amount
and
character
of
income
and
gains
to
be
distrib-
uted
are
determined
in
accordance
with
income
tax
regulations
which
may
differ
from
GAAP.
These
book/tax
differences
are
either
considered
temporary
or
permanent
in
nature. 
Temporary
differences
are
attributable
to
differing
book
and
tax
treatments
for
the
timing
of
the
recognition
of
gains
(loss-
es)
on
certain
investment
transactions
and
the
timing
of
the
deductibility
of
certain
expenses. 
Permanent
differences,
due
to
a
tax
adjustment
related
to
an
in-kind
redemption,
resulted
in
the
following
reclassifications
among
the
components
of
net
assets
at
September
30,
2023:
At
September
30,
2023,
the
components
of
distributable
earn-
ings
for
the
Fund
on
a
tax
basis
were
as
follows: 
At
September
30,
2023,
the
Fund
had
available
for
fed-
eral
income
tax
purposes
unused
short-term
capital
losses
of $303,265 that
do
not
have
an
expiration
date. 
To
the
extent
that
capital
loss
carryforwards
are
used
to
offset
any
future
capital
gains
realized,
no
capital
gains
tax
liability
will
be
incurred
by
the
Fund
for
gains
realized
and
not
distrib-
uted.
To
the
extent
that
capital
gains
are
offset,
such
gains
will
not
be
distributed
to
the
shareholders. 
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
Affiliated
Investment
Company
Value
September
30,
2023
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
59
$
515
$
476
$
3
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
98
2023
Distributions
Paid
From:
Ordinary
Long-Term
Income
Capital
Gain
$203,084
$–
Total
Distributable
Paid-In
Earnings
Capital
$(1,329,514)
$1,329,514
Undistributed
Undistributed
Ordinary
Long-Term
Income
Capital
Gain
$18,731
$–
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
18
Morgan
Stanley
ETF
Trust
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principle
risks
include,
but
are
not
limited
to,
the
following:
Tracking
Error
Risk:
Tracking
error
risk
refers
to
the
risk
that
the
Fund’s
performance
may
not
match
or
correlate
to
that
of
the
index
it
attempts
to
track,
either
on
a
daily
or
aggregate
basis.
Tracking
error
may
occur
because
of
transac-
tion
costs,
the
Fund’s
holding
of
cash,
differences
in
accrual
of
dividends,
changes
to
the
index
or
the
need
to
meet
new
or
existing
regulatory
requirements.
Factors
such
as
Fund
expens-
es,
imperfect
correlation
between
the
Fund’s
investments
and
the
index,
rounding
of
share
prices,
changes
to
the
composition
of
the
index,
regulatory
policies,
limitations
on
Fund
invest-
ments
imposed
by
Fund
diversification
and/or
concentration
policies,
high
portfolio
turnover
rate
and
the
use
of
leverage
all
contribute
to
tracking
error.
Unlike
the
Fund,
the
returns
of
the
index
are
not
reduced
by
investment
and
other
operating
expenses,
including
the
trading
costs
associated
with
imple-
menting
changes
to
its
portfolio
of
investments.
Tracking
error
risk
may
cause
the
Fund’s
performance
to
be
less
than
expected.
Tracking
error
risk
may
be
heightened
during
times
of
market
volatility,
unusual
market
conditions
or
other
abnormal
cir-
cumstances.
The
Fund
may
be
required
to
deviate
its
invest-
ments
from
the
securities
and
relative
weightings
of
the
index
to
comply
with
applicable
laws
and
regulations
or
because
of
market
restrictions
or
other
legal
reasons,
including
regulatory
limits
or
other
restrictions
on
securities
that
may
be
purchased
by
the
Adviser
and
its
affiliates.
If
the
Fund
uses
a
sampling
method
of
indexing,
it
may
have
a
larger
tracking
error
than
if
it
used
a
replication
method
of
indexing.
Index
Related
Risk:
The
Fund’s
return
may
not
track
the
return
of
the
index
for
a
number
of
reasons
and
therefore
may
not
achieve
its
investment
objective.
For
example,
the
Fund
incurs
a
number
of
operating
expenses
not
applicable
to
the
index,
and
incurs
costs
in
buying
and
selling
securities,
espe-
cially
when
rebalancing
the
Fund’s
securities
holdings
to
reflect
changes
in
the
composition
of
the
index.
In
addition,
the
Fund’s
return
may
differ
from
the
return
of
the
index
because
of,
among
other
things,
pricing
differences
and
the
inability
to
purchase
certain
securities
included
in
the
index
due
to
regu-
latory
or
other
restrictions.
In
addition,
because
the
Fund
uses
a
representative
sampling
approach,
the
Fund
can
be
expected
to
be
less
correlated
with
the
return
of
the
index
as
when
a
fund
purchases
all
of
the
securities
in
an
index
in
the
proportions
in
which
they
are
rep-
resented
in
the
index.
Errors
in
the
construction
or
calculation
of
the
index
may
occur
from
time
to
time.
Any
such
errors
may
not
be
identified
and
corrected
by
the
index
provider
for
some
period
of
time,
which
may
have
an
adverse
impact
on
the
Fund
and
its
shareholders.
The
risk
that
the
Fund
may
not
track
the
performance
of
the
index
may
be
heightened
during
times
of
increased
market
volatility
or
other
unusual
market
conditions. 
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
To
the
extent
that
these
inter-
mediaries
exit
the
business
or
are
unable
to
or
choose
not
to
proceed
with
creation
and/or
redemption
orders
with
respect
to
the
Fund,
such
as
during
periods
of
market
stress,
and
no
other
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
authorized
participant
creates
or
redeems,
shares
may
trade
at
a
discount
to
net
asset
value
(“NAV”)
and
possibly
face
trading
halts
and/or
delisting.
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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.
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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.
20
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
21
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
The
Adviser
has
engaged
Calvert
to
provide
proxy
voting
services
with
respect
to
the
Trust.
The
Adviser’s
Proxy
Voting
Policy
speci-
fies
that
each
Fund
will
follow
Calvert’s
Proxy
Voting
Policies
and
Procedures
and
Global
Proxy
Voting
Guidelines.
When
available,
the
Trust’s
proxy
voting
record
for
the
most
recent
12-month
period
ending
June
30,
as
filed
with
the
SEC,
will
be
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
will
also
be
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
22
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
23
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
24
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
25
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
ETFCALUSLGCAPDIVEQTYIISAN
6598430
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
NYSE
Arca:
CVMC
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
12
Statement
of
Operations
....................................................................................
13
Statements
of
Changes
in
Net
Assets
.......................................................................
14
Financial
Highlights
.........................................................................................
15
Notes
to
Financial
Statements
...............................................................................
16
Liquidity
Risk
Management
Program
.........................................................................
22
Important
Notices
..........................................................................................
23
U.S.
Customer
Privacy
Notice
...............................................................................
24
Trustees
and
Officers
Information
...........................................................................
27
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Calvert
US
Mid-Cap
Core
Responsible
Index
ETF (the
“Fund”)
performed
during
the
latest
six-month
period.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
six-month
period
ended
March
31,
2024 and
held
for
the
entire
six-month
period.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(
10/1/23
)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
$1,000.00
$1,221.00
$1,024.25
$0.83
$0.76
0.15%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
183/366
(to
reflect
the
most
recent
one-half
year
period).
**
Annualized.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
Morgan
Stanley
ETF
Trust
*
Cumulative
Return
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im
.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
S&P
500
®
Index
(1)
,
the
Russell
Mid-Cap
®
Index
(2)
and
the
Calvert
US
Mid-Cap
Core
Responsible
Index
(3)
Period
Ended
March
31,
2024
Total
Returns
Average
Annual
Six
Months
*
One
Year
Since
Inception
(4)
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
-
NAV
(5)
22.10%
19.64%
14.56%
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
-
Market
Price
(5)
22.21%
19.79%
14.64%
S&P
500
®
Index
23.48%
29.88%
28.00%
Russell
Mid-Cap
®
Index
22.52%
22.35%
16.76%
Calvert
US
Mid-Cap
Core
Responsible
Index
22.29%
19.93%
14.81%
(1)
The
Standard
&
Poor’s
500
®
Index
(S&P
500
®
Index)
measures
the
performance
of
the
large
cap
segment
of
the
U.S.
equities
market,
covering
approximately
80%
of
the
U.S.
equities
market.
The
Index
includes
500
leading
companies
in
leading
industries
of
the
U.S.
economy.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
The
Fund’s
primary
benchmark
index
was
changed
from
the
Russell
1000
®
Value
Index
to
the
S&P
500
®
Index
to
comply
with
the
regulation
that
requires
the
Fund’s
primary
benchmark
to
represent
the
overall
applicable
market.
(2)
The
Russell
Midcap
®
Index
is
an
unmanaged
index
of
U.S.
mid-cap
stocks.
The
Russell
Midcap
®
Index
is
a
subset
of
the
Russell
1000
®
Index
and
includes
approximately
800
of
the
smallest
securities
in
the
Russell
1000
®
Index,
which
in
turn
consists
of
approximately
1,000
of
the
largest
U.S.
securities
based
on
a
combination
of
market
capitalization
and
current
index
membership.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
(3)
The
Calvert
US
Mid-Cap
Core
Responsible
Index
(the
“Calvert
Index”)
is
composed
of
common
stocks
of
mid-sized
companies
that
operate
their
businesses
in
a
manner
that
is
consistent
with
the
Calvert
Principles
for
Responsible
Investment.
Mid-size
companies
are
the
1,000
largest
publicly
traded
U.S.
companies
based
on
market
capitalization,
excluding
real
estate
investment
trusts,
business
development
companies
and
approximately
the
200
largest
publicly
traded
U.S.
companies.
The
Calvert
Principles
of
Responsible
Investment
serve
as
a
framework
for
considering
environmental,
social
and
governance
factors
that
may
affect
investment
performance.
Stocks
are
weighted
in
the
Calvert
Index
based
on
their
float-
adjusted
market
capitalization
within
the
relevant
sector,
subject
to
certain
prescribed
limits.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
(4)
For
comparative
purposes,
average
annual
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(5)
Commenced
operations
on
January
30,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Common
Stocks
(99.8%)
Aerospace
&
Defense
(
0
.7
%
)
Axon
Enterprise,
Inc.
(a)
510
$
159,569
Curtiss-Wright
Corp.
279
71,407
HEICO
Corp.
293
55,963
Hexcel
Corp.
615
44,803
Woodward,
Inc.
413
63,651
395,393
Air
Freight
&
Logistics
(
0
.5
%
)
CH
Robinson
Worldwide,
Inc.
946
72,028
Expeditors
International
of
Washington,
Inc.
1,103
134,092
GXO
Logistics,
Inc.
(a)
863
46,395
252,515
Automobile
Components
(
0
.7
%
)
Aptiv
plc
(a)
1,999
159,220
Autoliv,
Inc.
676
81,411
BorgWarner,
Inc.
1,869
64,929
Lear
Corp.
466
67,514
Visteon
Corp.
(a)
222
26,110
399,184
Automobiles
(
0
.3
%
)
Harley-Davidson,
Inc.
1,112
48,639
Rivian
Automotive,
Inc.,
Class
 A
(a)
5,580
61,101
Thor
Industries,
Inc.
415
48,696
158,436
Banks
(
3
.2
%
)
Bank
OZK
692
31,458
BOK
Financial
Corp.
178
16,376
Citizens
Financial
Group,
Inc.
2,906
105,459
Columbia
Banking
System,
Inc.
1,327
25,677
Comerica,
Inc.
836
45,972
Commerce
Bancshares,
Inc.
807
42,932
Cullen/Frost
Bankers,
Inc.
378
42,552
East
West
Bancorp,
Inc.
893
70,645
Fifth
Third
Bancorp
4,318
160,673
First
Citizens
BancShares,
Inc.,
Class
 A
74
120,990
First
Financial
Bankshares,
Inc.
886
29,070
First
Horizon
Corp.
3,521
54,223
FNB
Corp.
2,289
32,275
Home
BancShares,
Inc.
1,207
29,656
Huntington
Bancshares,
Inc.
9,127
127,322
KeyCorp
5,942
93,943
M&T
Bank
Corp.
1,057
153,730
New
York
Community
Bancorp,
Inc.
4,544
14,632
Old
National
Bancorp
1,866
32,487
Pinnacle
Financial
Partners,
Inc.
478
41,051
Popular,
Inc.
452
39,817
Prosperity
Bancshares,
Inc.
572
37,626
Regions
Financial
Corp.
5,843
122,937
SouthState
Corp.
477
40,559
Synovus
Financial
Corp.
924
37,015
United
Bankshares,
Inc.
846
30,278
Valley
National
Bancorp
2,778
22,113
Webster
Financial
Corp.
1,092
55,441
Western
Alliance
Bancorp
690
44,291
Wintrust
Financial
Corp.
385
40,190
Shares
Value
Zions
Bancorp
NA
930
$
40,362
1,781,752
Beverages
(
0
.2
%
)
Celsius
Holdings,
Inc.
(a)
1,042
86,403
Coca-Cola
Consolidated,
Inc.
32
27,085
113,488
Biotechnology
(
1
.8
%
)
ACADIA
Pharmaceuticals,
Inc.
(a)
897
16,585
Alkermes
plc
(a)
1,193
32,294
Alnylam
Pharmaceuticals,
Inc.
(a)
908
135,701
Apellis
Pharmaceuticals,
Inc.
(a)
728
42,792
Arrowhead
Pharmaceuticals,
Inc.
(a)
879
25,139
BioMarin
Pharmaceutical,
Inc.
(a)
1,337
116,774
Blueprint
Medicines
Corp.
(a)
441
41,833
Denali
Therapeutics,
Inc.
(a)
811
16,642
Exact
Sciences
Corp.
(a)
1,301
89,847
Exelixis,
Inc.
(a)
2,135
50,664
Halozyme
Therapeutics,
Inc.
(a)
907
36,897
Incyte
Corp.
(a)
1,332
75,884
Ionis
Pharmaceuticals,
Inc.
(a)
967
41,919
Neurocrine
Biosciences,
Inc.
(a)
702
96,820
Sarepta
Therapeutics,
Inc.
(a)
639
82,725
United
Therapeutics
Corp.
(a)
313
71,902
974,418
Broadline
Retail
(
0
.5
%
)
eBay,
Inc.
3,280
173,118
Etsy,
Inc.
(a)
745
51,197
Macy's,
Inc.
1,725
34,483
258,798
Building
Products
(
3
.3
%
)
AAON,
Inc.
492
43,345
Advanced
Drainage
Systems,
Inc.
506
87,153
Allegion
plc
640
86,214
AO
Smith
Corp.
888
79,441
AZEK
Co.,
Inc.
(The),
Class
 A
(a)
906
45,499
Carlisle
Cos.,
Inc.
368
144,201
Carrier
Global
Corp.
5,221
303,497
Fortune
Brands
Innovations,
Inc.
794
67,228
Lennox
International,
Inc.
234
114,370
Masco
Corp.
1,389
109,564
Owens
Corning
730
121,764
Simpson
Manufacturing
Co.,
Inc.
310
63,606
Trane
Technologies
plc
1,364
409,473
Trex
Co.,
Inc.
(a)
684
68,229
UFP
Industries,
Inc.
379
46,621
Zurn
Elkay
Water
Solutions
Corp.
907
30,357
1,820,562
Capital
Markets
(
5
.2
%
)
Affiliated
Managers
Group,
Inc.
208
34,834
Ameriprise
Financial,
Inc.
638
279,725
Ares
Management
Corp.,
Class
 A
983
130,719
Bank
of
New
York
Mellon
Corp.
(The)
4,772
274,963
Blue
Owl
Capital,
Inc.,
Class
 A
2,847
53,694
Carlyle
Group,
Inc.
(The)
1,226
57,512
Cboe
Global
Markets,
Inc.
670
123,099
Coinbase
Global,
Inc.,
Class
 A
(a)
1,077
285,534
Evercore,
Inc.,
Class
 A
231
44,488
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Capital
Markets
(cont’d)
FactSet
Research
Systems,
Inc.
280
$
127,229
Franklin
Resources,
Inc.
1,847
51,919
Hamilton
Lane,
Inc.,
Class
 A
250
28,190
Houlihan
Lokey,
Inc.,
Class
 A
332
42,559
Interactive
Brokers
Group,
Inc.,
Class
 A
656
73,282
Invesco
Ltd.
2,810
46,618
Jefferies
Financial
Group,
Inc.
1,052
46,393
LPL
Financial
Holdings,
Inc.
471
124,438
MarketAxess
Holdings,
Inc.
273
59,855
Morningstar,
Inc.
196
60,441
Nasdaq,
Inc.
2,259
142,543
Northern
Trust
Corp.
1,278
113,640
Raymond
James
Financial,
Inc.
1,204
154,618
SEI
Investments
Co.
689
49,539
State
Street
Corp.
1,913
147,913
Stifel
Financial
Corp.
632
49,403
T
Rowe
Price
Group,
Inc.
1,395
170,078
Tradeweb
Markets,
Inc.,
Class
 A
732
76,253
2,849,479
Chemicals
(
1
.8
%
)
Arcadium
Lithium
plc
(a)
8,092
34,877
Ashland,
Inc.
365
35,540
Axalta
Coating
Systems
Ltd.
(a)
1,613
55,471
Balchem
Corp.
235
36,413
Cabot
Corp.
401
36,972
Celanese
Corp.,
Class
 A
798
137,144
Eastman
Chemical
Co.
857
85,889
Element
Solutions,
Inc.
1,630
40,717
FMC
Corp.
911
58,031
Huntsman
Corp.
1,189
30,950
International
Flavors
&
Fragrances,
Inc.
1,690
145,323
Mosaic
Co.
(The)
2,352
76,346
PPG
Industries,
Inc.
1,546
224,015
997,688
Commercial
Services
&
Supplies
(
0
.7
%
)
Casella
Waste
Systems,
Inc.,
Class
 A
(a)
438
43,305
Clean
Harbors,
Inc.
(a)
393
79,115
MSA
Safety,
Inc.
270
52,269
Rollins,
Inc.
2,095
96,936
Stericycle,
Inc.
(a)
716
37,769
Tetra
Tech,
Inc.
412
76,101
Vestis
Corp.
830
15,994
401,489
Communications
Equipment
(
0
.4
%
)
Ciena
Corp.
(a)
1,012
50,043
F5,
Inc.
(a)
413
78,301
Juniper
Networks,
Inc.
2,247
83,274
Lumentum
Holdings,
Inc.
(a)
457
21,639
Viasat,
Inc.
(a)
569
10,293
243,550
Construction
&
Engineering
(
1
.3
%
)
AECOM
1,053
103,278
Comfort
Systems
USA,
Inc.
272
86,417
EMCOR
Group,
Inc.
360
126,072
MasTec,
Inc.
(a)
471
43,921
Quanta
Services,
Inc.
943
244,991
Valmont
Industries,
Inc.
145
33,101
Shares
Value
WillScot
Mobile
Mini
Holdings
Corp.
(a)
1,434
$
66,681
704,461
Construction
Materials
(
0
.6
%
)
Summit
Materials,
Inc.,
Class
 A
(a)
1,568
69,886
Vulcan
Materials
Co.
862
235,257
305,143
Consumer
Finance
(
1
.0
%
)
Ally
Financial,
Inc.
1,720
69,815
Credit
Acceptance
Corp.
(a)
40
22,062
Discover
Financial
Services
1,586
207,909
FirstCash
Holdings,
Inc.
242
30,864
OneMain
Holdings,
Inc.
761
38,879
SLM
Corp.
1,363
29,700
SoFi
Technologies,
Inc.
(a)
6,230
45,479
Synchrony
Financial
2,574
110,991
555,699
Consumer
Staples
Distribution
&
Retail
(
2
.0
%
)
Albertsons
Cos.,
Inc.,
Class
 A
2,232
47,854
BJ's
Wholesale
Club
Holdings,
Inc.
(a)
839
63,470
Casey's
General
Stores,
Inc.
249
79,294
Dollar
Tree,
Inc.
(a)
1,380
183,747
Kroger
Co.
(The)
4,658
266,112
Performance
Food
Group
Co.
(a)
1,022
76,282
Sprouts
Farmers
Market,
Inc.
(a)
680
43,847
Sysco
Corp.
3,174
257,665
U.S.
Foods
Holding
Corp.
(a)
1,641
88,565
1,106,836
Containers
&
Packaging
(
1
.6
%
)
AptarGroup,
Inc.
482
69,355
Avery
Dennison
Corp.
584
130,378
Ball
Corp.
2,310
155,602
Berry
Global
Group,
Inc.
849
51,347
Crown
Holdings,
Inc.
880
69,749
Graphic
Packaging
Holding
Co.
2,220
64,779
Packaging
Corp.
of
America
646
122,598
Sealed
Air
Corp.
1,051
39,097
Silgan
Holdings,
Inc.
604
29,330
Sonoco
Products
Co.
714
41,298
Westrock
Co.
1,877
92,818
866,351
Distributors
(
0
.6
%
)
Genuine
Parts
Co.
882
136,648
LKQ
Corp.
1,678
89,622
Pool
Corp.
236
95,226
321,496
Diversified
Consumer
Services
(
0
.4
%
)
Bright
Horizons
Family
Solutions,
Inc.
(a)
423
47,951
Duolingo,
Inc.,
Class
 A
(a)
266
58,674
H&R
Block,
Inc.
1,018
49,994
Service
Corp.
International
1,046
77,624
234,243
Diversified
Telecommunication
Services
(
0
.0
%
)
(b)
Iridium
Communications,
Inc.
863
22,576
Electric
Utilities
(
2
.1
%
)
Alliant
Energy
Corp.
1,986
100,094
Avangrid,
Inc.
531
19,350
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Electric
Utilities
(cont’d)
Constellation
Energy
Corp.
1,944
$
359,348
Evergy,
Inc.
1,757
93,789
Eversource
Energy
2,554
152,653
IDACORP,
Inc.
390
36,227
NRG
Energy,
Inc.
1,582
107,086
PNM
Resources,
Inc.
657
24,729
Portland
General
Electric
Co.
780
32,760
Xcel
Energy,
Inc.
3,754
201,777
1,127,813
Electrical
Equipment
(
2
.3
%
)
Acuity
Brands,
Inc.
226
60,733
AMETEK,
Inc.
1,463
267,583
Atkore,
Inc.
266
50,636
EnerSys
246
23,237
Hubbell,
Inc.,
Class
 B
393
163,115
nVent
Electric
plc
1,185
89,349
Regal
Rexnord
Corp.
486
87,528
Rockwell
Automation,
Inc.
757
220,537
Sensata
Technologies
Holding
plc
1,103
40,524
Shoals
Technologies
Group,
Inc.,
Class
 A
(a)
1,098
12,276
Sunrun,
Inc.
(a)
1,419
18,702
Vertiv
Holdings
Co.,
Class
 A
2,522
205,972
1,240,192
Electronic
Equipment,
Instruments
&
Components
(
2
.9
%
)
Advanced
Energy
Industries,
Inc.
271
27,637
Arrow
Electronics,
Inc.
(a)
338
43,757
Avnet,
Inc.
567
28,112
Badger
Meter,
Inc.
214
34,627
Belden,
Inc.
298
27,598
CDW
Corp.
884
226,110
Cognex
Corp.
1,258
53,364
Coherent
Corp.
(a)
1,054
63,894
Corning,
Inc.
5,395
177,819
Insight
Enterprises,
Inc.
(a)
180
33,394
IPG
Photonics
Corp.
(a)
201
18,229
Jabil,
Inc.
871
116,670
Keysight
Technologies,
Inc.
(a)
1,194
186,718
Littelfuse,
Inc.
180
43,623
Novanta,
Inc.
(a)
260
45,440
TD
SYNNEX
Corp.
403
45,579
Teledyne
Technologies,
Inc.
(a)
345
148,115
Trimble,
Inc.
(a)
1,799
115,784
Vishay
Intertechnology,
Inc.
879
19,936
Vontier
Corp.
1,079
48,943
Zebra
Technologies
Corp.,
Class
 A
(a)
360
108,518
1,613,867
Energy
Equipment
&
Services
(
0
.4
%
)
Baker
Hughes
Co.,
Class
 A
6,741
225,824
Entertainment
(
1
.9
%
)
AMC
Entertainment
Holdings,
Inc.,
Class
 A
(a)
2,182
8,117
Atlanta
Braves
Holdings,
Inc.,
Class
 C
(a)
364
14,218
Electronic
Arts,
Inc.
1,591
211,078
Liberty
Media
Corp-Liberty
Formula
One,
Class
 A
(a)
1,762
103,500
Liberty
Media
Corp-Liberty
Live,
Class
 A
(a)
500
21,175
Live
Nation
Entertainment,
Inc.
(a)
1,061
112,222
Madison
Square
Garden
Sports
Corp.
(a)
125
23,065
Shares
Value
ROBLOX
Corp.,
Class
 A
(a)
3,383
$
129,163
Roku,
Inc.,
Class
 A
(a)
887
57,806
Take-Two
Interactive
Software,
Inc.
(a)
1,110
164,824
Warner
Bros
Discovery,
Inc.
(a)
17,128
149,527
Warner
Music
Group
Corp.,
Class
 A
982
32,425
1,027,120
Financial
Services
(
2
.1
%
)
Affirm
Holdings,
Inc.,
Class
 A
(a)
1,742
64,907
Block,
Inc.,
Class
 A
(a)
3,426
289,771
Equitable
Holdings,
Inc.
2,091
79,479
Essent
Group
Ltd.
662
39,396
Euronet
Worldwide,
Inc.
(a)
304
33,419
Fidelity
National
Information
Services,
Inc.
3,680
272,982
Jack
Henry
&
Associates,
Inc.
512
88,950
MGIC
Investment
Corp.
1,695
37,900
Radian
Group,
Inc.
978
32,734
Shift4
Payments,
Inc.,
Class
 A
(a)
393
25,965
Toast,
Inc.,
Class
 A
(a)
2,541
63,322
Voya
Financial,
Inc.
643
47,530
Western
Union
Co.
(The)
2,402
33,580
WEX,
Inc.
(a)
293
69,596
1,179,531
Food
Products
(
1
.7
%
)
Bunge
Global
SA
961
98,522
Campbell
Soup
Co.
1,328
59,030
Conagra
Brands,
Inc.
3,214
95,263
Darling
Ingredients,
Inc.
(a)
1,063
49,440
Flowers
Foods,
Inc.
1,309
31,089
Hormel
Foods
Corp.
1,951
68,070
Ingredion,
Inc.
437
51,064
JM
Smucker
Co.
(The)
699
87,983
Kellanova
1,929
110,512
Lamb
Weston
Holdings,
Inc.
955
101,736
Lancaster
Colony
Corp.
130
26,992
McCormick
&
Co.,
Inc.
(Non-Voting)
1,783
136,952
Simply
Good
Foods
Co.
(The)
(a)
609
20,724
937,377
Gas
Utilities
(
0
.3
%
)
National
Fuel
Gas
Co.
705
37,872
New
Jersey
Resources
Corp.
759
32,569
ONE
Gas,
Inc.
434
28,006
Southwest
Gas
Holdings,
Inc.
474
36,086
UGI
Corp.
1,620
39,755
174,288
Ground
Transportation
(
1
.5
%
)
Avis
Budget
Group,
Inc.
162
19,839
JB
Hunt
Transport
Services,
Inc.
633
126,125
Knight-Swift
Transportation
Holdings,
Inc.,
Class
 A
1,281
70,481
Landstar
System,
Inc.
289
55,708
Old
Dominion
Freight
Line,
Inc.
1,192
261,417
Ryder
System,
Inc.
349
41,946
Saia,
Inc.
(a)
212
124,020
XPO,
Inc.
(a)
934
113,976
813,512
Health
Care
Equipment
&
Supplies
(
3
.8
%
)
Align
Technology,
Inc.
(a)
509
166,911
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Health
Care
Equipment
&
Supplies
(cont’d)
Baxter
International,
Inc.
3,659
$
156,386
CONMED
Corp.
229
18,338
Cooper
Cos.,
Inc.
(The)
1,433
145,392
DENTSPLY
SIRONA,
Inc.
1,519
50,416
Envista
Holdings
Corp.
(a)
1,236
26,426
GE
HealthCare
Technologies,
Inc.
2,636
239,639
Globus
Medical,
Inc.,
Class
 A
(a)
810
43,448
Haemonetics
Corp.
(a)
376
32,092
Hologic,
Inc.
(a)
1,674
130,505
ICU
Medical,
Inc.
(a)
153
16,420
Inari
Medical,
Inc.
(a)
371
17,801
Inspire
Medical
Systems,
Inc.
(a)
210
45,106
Insulet
Corp.
(a)
502
86,043
iRhythm
Technologies,
Inc.
(a)
222
25,752
Masimo
Corp.
(a)
312
45,817
Merit
Medical
Systems,
Inc.
(a)
419
31,739
Neogen
Corp.
(a)
1,567
24,727
Novocure
Ltd.
(a)
742
11,597
Penumbra,
Inc.
(a)
269
60,035
QuidelOrtho
Corp.
(a)
359
17,210
ResMed,
Inc.
1,017
201,397
Shockwave
Medical,
Inc.
(a)
267
86,943
STERIS
plc
703
158,048
Teleflex,
Inc.
340
76,898
Zimmer
Biomet
Holdings,
Inc.
1,426
188,204
2,103,290
Health
Care
Providers
&
Services
(
2
.1
%
)
agilon
health,
Inc.
(a)
2,150
13,115
AMN
Healthcare
Services,
Inc.
(a)
278
17,378
Centene
Corp.
(a)
3,366
264,164
Chemed
Corp.
107
68,686
DaVita,
Inc.
(a)
390
53,839
Encompass
Health
Corp.
714
58,962
Ensign
Group,
Inc.
(The)
402
50,017
HealthEquity,
Inc.
(a)
593
48,407
Henry
Schein,
Inc.
(a)
918
69,327
Laboratory
Corp.
of
America
Holdings
608
132,824
Molina
Healthcare,
Inc.
(a)
413
169,673
Option
Care
Health,
Inc.
(a)
1,241
41,623
Progyny,
Inc.
(a)
624
23,806
Quest
Diagnostics,
Inc.
794
105,689
R1
RCM,
Inc.
(a)
1,018
13,112
Select
Medical
Holdings
Corp.
735
22,160
Surgery
Partners,
Inc.
(a)
587
17,510
1,170,292
Health
Care
Technology
(
0
.5
%
)
Doximity,
Inc.,
Class
 A
(a)
861
23,169
Veeva
Systems,
Inc.,
Class
 A
(a)
968
224,276
247,445
Hotels,
Restaurants
&
Leisure
(
2
.4
%
)
Aramark
1,759
57,203
Choice
Hotels
International,
Inc.
220
27,797
Darden
Restaurants,
Inc.
804
134,389
Domino's
Pizza,
Inc.
233
115,773
Hilton
Grand
Vacations,
Inc.
(a)
549
25,918
Hilton
Worldwide
Holdings,
Inc.
1,530
326,364
Hyatt
Hotels
Corp.,
Class
 A
319
50,919
Shares
Value
Marriott
Vacations
Worldwide
Corp.
235
$
25,316
Planet
Fitness,
Inc.,
Class
 A
(a)
625
39,144
Texas
Roadhouse,
Inc.,
Class
 A
448
69,203
Vail
Resorts,
Inc.
277
61,724
Wendy's
Co.
(The)
1,147
21,609
Wingstop,
Inc.
193
70,715
Wyndham
Hotels
&
Resorts,
Inc.
633
48,583
Yum!
Brands,
Inc.
1,804
250,125
1,324,782
Household
Durables
(
2
.5
%
)
D.R.
Horton,
Inc.
1,844
303,430
KB
Home
569
40,331
Leggett
&
Platt,
Inc.
833
15,952
Lennar
Corp.,
Class
 A
1,593
273,964
Meritage
Homes
Corp.
273
47,900
Mohawk
Industries,
Inc.
(a)
338
44,241
Newell
Brands,
Inc.
2,622
21,055
NVR,
Inc.
(a)
22
178,199
PulteGroup,
Inc.
1,504
181,412
Taylor
Morrison
Home
Corp.,
Class
 A
(a)
799
49,674
Tempur
Sealy
International,
Inc.
1,061
60,286
TopBuild
Corp.
(a)
245
107,979
Whirlpool
Corp.
336
40,196
1,364,619
Household
Products
(
0
.5
%
)
Church
&
Dwight
Co.,
Inc.
1,545
161,159
Clorox
Co.
(The)
786
120,344
281,503
Independent
Power
and
Renewable
Electricity
Producers
(
0
.3
%
)
AES
Corp.
(The)
5,533
99,207
Brookfield
Renewable
Corp.,
Class
 A
1,031
25,331
Clearway
Energy,
Inc.,
Class
 C
874
20,146
Ormat
Technologies,
Inc.
411
27,204
171,888
Insurance
(
4
.6
%
)
Allstate
Corp.
(The)
1,662
287,543
American
Financial
Group,
Inc.
495
67,558
Arch
Capital
Group
Ltd.
(a)
2,314
213,906
Axis
Capital
Holdings
Ltd.
496
32,250
Brown
&
Brown,
Inc.
1,749
153,107
Cincinnati
Financial
Corp.
979
121,562
Everest
Group
Ltd.
272
108,120
First
American
Financial
Corp.
724
44,200
Globe
Life,
Inc.
583
67,844
Hanover
Insurance
Group,
Inc.
(The)
225
30,638
Hartford
Financial
Services
Group,
Inc.
(The)
1,888
194,558
Kinsale
Capital
Group,
Inc.
139
72,939
Lincoln
National
Corp.
1,084
34,612
Old
Republic
International
Corp.
1,652
50,749
Primerica,
Inc.
220
55,651
Principal
Financial
Group,
Inc.
1,494
128,947
Prudential
Financial,
Inc.
2,285
268,259
Reinsurance
Group
of
America,
Inc.
418
80,624
RenaissanceRe
Holdings
Ltd.
322
75,680
Ryan
Specialty
Holdings,
Inc.,
Class
 A
625
34,688
Selective
Insurance
Group,
Inc.
380
41,485
Unum
Group
1,209
64,875
W.
R.
Berkley
Corp.
1,276
112,849
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Insurance
(cont’d)
White
Mountains
Insurance
Group
Ltd.
16
$
28,709
Willis
Towers
Watson
plc
651
179,025
2,550,378
Interactive
Media
&
Services
(
0
.5
%
)
IAC,
Inc.
(a)
530
28,270
Pinterest,
Inc.,
Class
 A
(a)
4,148
143,811
Snap,
Inc.,
Class
 A
(a)
7,362
84,516
ZoomInfo
Technologies,
Inc.,
Class
 A
(a)
2,027
32,493
289,090
IT
Services
(
2
.7
%
)
Akamai
Technologies,
Inc.
(a)
1,052
114,415
Amdocs
Ltd.
824
74,465
Cloudflare,
Inc.,
Class
 A
(a)
1,982
191,917
Cognizant
Technology
Solutions
Corp.,
Class
 A
3,187
233,575
DXC
Technology
Co.
(a)
1,274
27,022
EPAM
Systems,
Inc.
(a)
399
110,188
Gartner,
Inc.
(a)
494
235,475
MongoDB,
Inc.,
Class
 A
(a)
464
166,409
Okta,
Inc.,
Class
 A
(a)
1,099
114,977
Twilio,
Inc.,
Class
 A
(a)
1,218
74,481
VeriSign,
Inc.
(a)
627
118,823
1,461,747
Leisure
Products
(
0
.3
%
)
Brunswick
Corp.
492
47,488
Hasbro,
Inc.
824
46,572
Mattel,
Inc.
(a)
2,217
43,919
137,979
Life
Sciences
Tools
&
Services
(
3
.5
%
)
Agilent
Technologies,
Inc.
1,866
271,522
Avantor,
Inc.
(a)
4,786
122,378
Bio-Rad
Laboratories,
Inc.,
Class
 A
(a)
145
50,151
Bio-Techne
Corp.
1,126
79,259
Bruker
Corp.
651
61,155
Charles
River
Laboratories
International,
Inc.
(a)
363
98,355
Fortrea
Holdings,
Inc.
(a)
663
26,613
Illumina,
Inc.
(a)
1,139
156,407
IQVIA
Holdings,
Inc.
(a)
1,131
286,019
Medpace
Holdings,
Inc.
(a)
168
67,897
Mettler-Toledo
International,
Inc.
(a)
146
194,368
PerkinElmer,
Inc.
891
93,555
Repligen
Corp.
(a)
376
69,154
Waters
Corp.
(a)
428
147,330
West
Pharmaceutical
Services,
Inc.
505
199,834
1,923,997
Machinery
(
6
.5
%
)
AGCO
Corp.
454
55,851
Allison
Transmission
Holdings,
Inc.
637
51,699
Chart
Industries,
Inc.
(a)
309
50,898
CNH
Industrial
NV
6,587
85,368
Cummins,
Inc.
901
265,480
Donaldson
Co.,
Inc.
879
65,644
Dover
Corp.
992
175,772
Esab
Corp.
414
45,776
Flowserve
Corp.
959
43,807
Fortive
Corp.
2,357
202,749
Franklin
Electric
Co.,
Inc.
290
30,975
Shares
Value
Graco,
Inc.
1,225
$
114,488
IDEX
Corp.
556
135,675
Ingersoll
Rand,
Inc.
2,610
247,819
ITT,
Inc.
600
81,618
Lincoln
Electric
Holdings,
Inc.
410
104,730
Middleby
Corp.
(The)
(a)
388
62,387
Mueller
Industries,
Inc.
805
43,414
Nordson
Corp.
377
103,502
Oshkosh
Corp.
477
59,487
Otis
Worldwide
Corp.
2,602
258,301
PACCAR,
Inc.
3,138
388,767
Pentair
plc
1,209
103,297
Snap-on,
Inc.
385
114,045
SPX
Technologies,
Inc.
(a)
328
40,387
Stanley
Black
&
Decker,
Inc.
1,111
108,800
Timken
Co.
(The)
462
40,393
Toro
Co.
(The)
761
69,730
Watts
Water
Technologies,
Inc.,
Class
 A
198
42,085
Westinghouse
Air
Brake
Technologies
Corp.
1,227
178,749
Xylem,
Inc.
1,614
208,593
3,580,286
Media
(
1
.3
%
)
Cable
One,
Inc.
31
13,117
Interpublic
Group
of
Cos.,
Inc.
(The)
2,789
91,005
Liberty
Broadband
Corp.,
Class
 C
(a)
919
52,595
New
York
Times
Co.
(The),
Class
 A
1,178
50,913
Nexstar
Media
Group,
Inc.,
Class
 A
232
39,971
Omnicom
Group,
Inc.
1,447
140,012
Paramount
Global,
Class
 B
4,406
51,859
Sirius
XM
Holdings,
Inc.
4,590
17,809
TEGNA,
Inc.
1,432
21,394
Trade
Desk,
Inc.
(The),
Class
 A
(a)
2,846
248,797
727,472
Metals
&
Mining
(
1
.4
%
)
ATI,
Inc.
(a)
1,486
76,039
Commercial
Metals
Co.
1,356
79,692
Nucor
Corp.
1,498
296,454
Reliance,
Inc.
432
144,366
Steel
Dynamics,
Inc.
1,114
165,128
761,679
Multi-Utilities
(
2
.2
%
)
Ameren
Corp.
1,969
145,627
Black
Hills
Corp.
525
28,665
CMS
Energy
Corp.
2,272
137,093
Consolidated
Edison,
Inc.
2,319
210,588
DTE
Energy
Co.
1,478
165,743
NiSource,
Inc.
3,463
95,787
Public
Service
Enterprise
Group,
Inc.
3,326
222,110
WEC
Energy
Group,
Inc.
2,208
181,321
1,186,934
Paper
&
Forest
Products
(
0
.1
%
)
Louisiana-Pacific
Corp.
406
34,067
Passenger
Airlines
(
0
.8
%
)
Alaska
Air
Group,
Inc.
(a)
1,029
44,236
American
Airlines
Group,
Inc.
(a)
5,285
81,125
Delta
Air
Lines,
Inc.
4,400
210,628
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Passenger
Airlines
(cont’d)
Southwest
Airlines
Co.
4,363
$
127,356
463,345
Personal
Care
Products
(
0
.3
%
)
BellRing
Brands,
Inc.
(a)
823
48,582
Coty,
Inc.,
Class
 A
(a)
2,501
29,912
elf
Beauty,
Inc.
(a)
336
65,866
144,360
Pharmaceuticals
(
0
.6
%
)
Catalent,
Inc.
(a)
1,267
71,522
Elanco
Animal
Health,
Inc.
(a)
3,535
57,550
Jazz
Pharmaceuticals
plc
(a)
436
52,503
Organon
&
Co.
1,851
34,799
Perrigo
Co.
plc
978
31,482
Royalty
Pharma
plc,
Class
 A
2,743
83,305
331,161
Professional
Services
(
2
.9
%
)
Alight,
Inc.,
Class
 A
(a)
2,390
23,541
Booz
Allen
Hamilton
Holding
Corp.,
Class
 A
943
139,979
Broadridge
Financial
Solutions,
Inc.
827
169,419
Concentrix
Corp.
337
22,316
Dayforce,
Inc.
(a)
1,070
70,845
Dun
&
Bradstreet
Holdings,
Inc.
1,908
19,156
Equifax,
Inc.
811
216,959
ExlService
Holdings,
Inc.
(a)
1,105
35,139
Exponent,
Inc.
367
30,347
FTI
Consulting,
Inc.
(a)
257
54,045
Genpact
Ltd.
1,178
38,815
Insperity,
Inc.
260
28,499
ManpowerGroup,
Inc.
350
27,174
Maximus,
Inc.
445
37,335
Paycom
Software,
Inc.
357
71,047
Paylocity
Holding
Corp.
(a)
309
53,105
Robert
Half,
Inc.
755
59,856
Science
Applications
International
Corp.
363
47,332
SS&C
Technologies
Holdings,
Inc.
1,516
97,585
TransUnion
1,424
113,635
TriNet
Group,
Inc.
233
30,870
Verisk
Analytics,
Inc.,
Class
 A
933
219,936
1,606,935
Real
Estate
Management
&
Development
(
1
.1
%
)
CBRE
Group,
Inc.,
Class
 A
(a)
2,070
201,287
CoStar
Group,
Inc.
(a)
2,635
254,541
Howard
Hughes
Holdings,
Inc.
(a)
261
18,954
Jones
Lang
LaSalle,
Inc.
(a)
365
71,208
Zillow
Group,
Inc.,
Class
 C
(a)
1,454
70,926
616,916
Semiconductors
&
Semiconductor
Equipment
(
2
.9
%
)
Allegro
MicroSystems,
Inc.
(a)
551
14,855
Axcelis
Technologies,
Inc.
(a)
236
26,319
Cirrus
Logic,
Inc.
(a)
379
35,080
Diodes,
Inc.
(a)
313
22,066
Enphase
Energy,
Inc.
(a)
807
97,631
Entegris,
Inc.
1,058
148,691
First
Solar,
Inc.
(a)
620
104,656
Lattice
Semiconductor
Corp.
(a)
961
75,179
MKS
Instruments,
Inc.
490
65,170
Shares
Value
Monolithic
Power
Systems,
Inc.
302
$
204,581
ON
Semiconductor
Corp.
(a)
2,795
205,572
Onto
Innovation,
Inc.
(a)
344
62,292
Power
Integrations,
Inc.
396
28,334
Qorvo,
Inc.
(a)
678
77,855
Rambus,
Inc.
(a)
757
46,790
Silicon
Laboratories,
Inc.
(a)
220
31,618
Skyworks
Solutions,
Inc.
1,130
122,402
SolarEdge
Technologies,
Inc.
(a)
351
24,914
Teradyne,
Inc.
1,079
121,744
Universal
Display
Corp.
309
52,051
Wolfspeed,
Inc.
(a)
870
25,665
1,593,465
Software
(
4
.9
%
)
Altair
Engineering,
Inc.,
Class
 A
(a)
399
34,374
ANSYS,
Inc.
(a)
587
203,783
Appfolio,
Inc.,
Class
 A
(a)
141
34,790
AppLovin
Corp.,
Class
 A
(a)
1,104
76,419
Aspen
Technology,
Inc.
(a)
191
40,736
BILL
Holdings,
Inc.
(a)
710
48,791
Box,
Inc.,
Class
 A
(a)
972
27,527
Confluent,
Inc.,
Class
 A
(a)
1,511
46,116
Datadog,
Inc.,
Class
 A
(a)
1,782
220,255
DocuSign,
Inc.,
Class
 A
(a)
1,428
85,037
Dolby
Laboratories,
Inc.,
Class
 A
413
34,597
DoubleVerify
Holdings,
Inc.
(a)
1,010
35,512
Dropbox,
Inc.,
Class
 A
(a)
1,785
43,375
Dynatrace,
Inc.
(a)
1,697
78,809
Elastic
NV
(a)
573
57,437
Fair
Isaac
Corp.
(a)
162
202,437
Five9,
Inc.
(a)
507
31,490
Gen
Digital,
Inc.
4,098
91,795
Guidewire
Software,
Inc.
(a)
572
66,758
HashiCorp,
Inc.,
Class
 A
(a)
738
19,889
HubSpot,
Inc.
(a)
326
204,259
Manhattan
Associates,
Inc.
(a)
429
107,349
Nutanix,
Inc.,
Class
 A
(a)
1,710
105,541
PTC,
Inc.
(a)
836
157,954
Qualys,
Inc.
(a)
255
42,552
SentinelOne,
Inc.,
Class
 A
(a)
1,616
37,669
Smartsheet,
Inc.,
Class
 A
(a)
922
35,497
SPS
Commerce,
Inc.
(a)
259
47,889
Tenable
Holdings,
Inc.
(a)
820
40,533
Teradata
Corp.
(a)
674
26,064
Tyler
Technologies,
Inc.
(a)
297
126,228
Workiva,
Inc.,
Class
 A
(a)
341
28,917
Zoom
Video
Communications,
Inc.,
Class
 A
(a)
1,628
106,422
Zscaler,
Inc.
(a)
621
119,623
2,666,424
Specialty
Retail
(
2
.9
%
)
Academy
Sports
&
Outdoors,
Inc.
461
31,136
Advance
Auto
Parts,
Inc.
374
31,824
Asbury
Automotive
Group,
Inc.
(a)
129
30,416
AutoNation,
Inc.
(a)
173
28,645
Bath
&
Body
Works,
Inc.
1,425
71,279
Best
Buy
Co.,
Inc.
1,218
99,913
Burlington
Stores,
Inc.
(a)
407
94,501
CarMax,
Inc.
(a)
997
86,849
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Specialty
Retail
(cont’d)
Chewy,
Inc.,
Class
 A
(a)
811
$
12,903
Dick's
Sporting
Goods,
Inc.
357
80,275
Five
Below,
Inc.
(a)
340
61,669
Floor
&
Decor
Holdings,
Inc.,
Class
 A
(a)
666
86,327
GameStop
Corp.,
Class
 A
(a)
1,685
21,096
Lithia
Motors,
Inc.,
Class
 A
170
51,146
Penske
Automotive
Group,
Inc.
123
19,925
RH
(a)
94
32,736
Ross
Stores,
Inc.
2,050
300,858
Tractor
Supply
Co.
683
178,755
Ulta
Beauty,
Inc.
(a)
308
161,047
Williams-Sonoma,
Inc.
382
121,296
1,602,596
Technology
Hardware,
Storage
&
Peripherals
(
2
.5
%
)
Dell
Technologies,
Inc.,
Class
 C
1,675
191,134
Hewlett
Packard
Enterprise
Co.
9,168
162,549
HP,
Inc.
6,061
183,163
NetApp,
Inc.
1,454
152,626
Pure
Storage,
Inc.,
Class
 A
(a)
2,096
108,971
Seagate
Technology
Holdings
plc
1,475
137,249
Super
Micro
Computer,
Inc.
(a)
303
306,039
Western
Digital
Corp.
(a)
2,270
154,905
1,396,636
Textiles,
Apparel
&
Luxury
Goods
(
0
.9
%
)
Capri
Holdings
Ltd.
(a)
722
32,707
Columbia
Sportswear
Co.
213
17,291
Crocs,
Inc.
(a)
369
53,062
Deckers
Outdoor
Corp.
(a)
161
151,543
PVH
Corp.
376
52,869
Ralph
Lauren
Corp.,
Class
 A
239
44,875
Skechers
USA,
Inc.,
Class
 A
(a)
835
51,152
Tapestry,
Inc.
1,449
68,799
VF
Corp.
2,321
35,604
507,902
Trading
Companies
&
Distributors
(
2
.3
%
)
Air
Lease
Corp.,
Class
 A
761
39,146
Applied
Industrial
Technologies,
Inc.
280
55,314
Beacon
Roofing
Supply,
Inc.
(a)
410
40,188
Core
&
Main,
Inc.,
Class
 A
(a)
1,425
81,581
Fastenal
Co.
3,627
279,787
GATX
Corp.
257
34,446
MSC
Industrial
Direct
Co.,
Inc.,
Class
 A
280
27,171
SiteOne
Landscape
Supply,
Inc.
(a)
281
49,048
United
Rentals,
Inc.
418
301,424
WESCO
International,
Inc.
279
47,787
WW
Grainger,
Inc.
282
286,879
1,242,771
Water
Utilities
(
0
.5
%
)
American
Water
Works
Co.,
Inc.
1,384
169,139
Essential
Utilities,
Inc.
2,142
79,361
248,500
Total
Common
Stocks
(Cost
$49,289,033)
54,841,540
Shares
Value
Short-Term
Investment
(
0
.1
%
)
Investment
Company
(0.1%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(
See
Note
G
)
(Cost
$44,742)
44,742
$
44,742
Total
Investments
(
99
.9
%
)
(Cost
$
49,333,775
)
(c)
54,886,282
Other
Assets
in
Excess
of
Liabilities
(0.1%)
46,984
NET
ASSETS
(100.0%)
$54,933,266
(a)
Non-income
producing
security.
(b)
Amount
is
less
than
0.05%.
(c)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$49,333,775.
The
aggregate
gross
unrealized
appreciation
is
$6,947,789
and
the
aggregate
gross
unrealized
depreciation
is
$1,395,282,
resulting
in
net
unrealized
appreciation
of
$5,552,507.
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
88
.3
%
Machinery
6
.5
Capital
Markets
5
.2
Total
Investments
100
.0
%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$49,289,033)
$
54,841,540
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$44,742)
44,742
Total
Investments
in
Securities,
at
Value
(Cost
$49,333,775)
54,886,282
Cash
12,605
Dividends
Receivable
41,145
Total
Assets
54,940,032
Liabilities:
Payable
for
Management
Fee
6,733
Payable
for
Dividends
to
Shareholders
33
Total
Liabilities
6,766
Net
Assets
$
54,933,266
Net
Assets
Consist
of:
Paid-in-Capital
$
49,147,985
Total
Distributable
Earnings
5,785,281
Net
Assets
$
54,933,266
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
950,000
Net
Asset
Value
Per
Share
$
57
.82
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Six
Months
Ended
March
31,
2024
Investment
Income:
Dividends
from
Securities
of
Unaffiliated
Issuers
(Net
of
$181
of
Foreign
Taxes
Withheld)
$
259,848
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
2,929
Total
Investment
Income
262,777
Expenses:
Management
Fee
(Note
B)
27,733
Total
Expenses
27,733
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(
85
)
Net
Expenses
27,648
Net
Investment
Income
235,129
Realized
Gain
(Loss):
Investments
Sold
(
58,616
)
In-kind
Redemptions
on
Investments
754,061
Net
Realized
Gain
695,445
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
6,597,968
Net
Change
in
Unrealized
Appreciation
(Depreciation)
6,597,968
Net
Realized
Gain
and
Change
in
Unrealized
Appreciation
(Depreciation)
7,293,413
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
7,528,542
Semi-Annual
Report
March
31,
2024
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
14
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statements
of
Changes
in
Net
Assets
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
^
to
September
30,
2023
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
235,129
$
200,807
Net
Realized
Gain
(Loss)
695,445
(
113,751
)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
6,597,968
(
1,045,461
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
7,528,542
(
958,405
)
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(
217,357
)
(
181,123
)
Total
Dividends
and
Distributions
to
Shareholders
(
217,357
)
(
181,123
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Subscribed
In-Kind
26,618,292
7,447,569
Redeemed
In-Kind
(
2,792,625
)
(
2,511,627
)
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
23,825,667
24,935,942
Total
Increase
in
Net
Assets
31,136,852
23,796,414
Net
Assets:
Beginning
of
Period
23,796,414
End
of
Period
$
54,933,266
$
23,796,414
Capital
Share
Transactions:
Beginning
of
Period
500,000
Shares
Subscribed
400,000
Shares
Subscribed
In-Kind
500,000
150,000
Shares
Redeemed
In-Kind
(
50,000
)
(
50,000
)
Shares
Outstanding,
End
of
Period
Net
Increase
in
950,000
500,000
^
Commencement
of
Operations
(1)
Total
consists
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Calvert
US
Mid-Cap
Core
Responsible
Index
ETF
15
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
(1)
to
September
30,
2023
Net
Asset
Value,
Beginning
of
Period
$
47
.59‌
$
50
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
0
.33‌
0
.44‌
Net
Realized
and
Unrealized
Gain
(Loss)
10
.16‌
(
2
.46‌
)
Total
from
Investment
Operations
10
.49‌
(
2
.02‌
)
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
0
.26‌
)
(
0
.39‌
)
Net
Asset
Value,
End
of
Period
$
57
.82‌
$
47
.59‌
Total
Return
(3)
22
.10‌
%
(4)
(
4
.06‌
)
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$54,933
$23,796
Net
Assets,
End
of
Period
(Thousands)
$
54,933‌
$
23,796‌
Ratio
of
Expenses
0
.15‌
%
(5)
(6)
0
.15‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
1
.27‌
%
(5)
(6)
1
.32‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.00‌
%
(5)
(7)
0
.00‌
%
(5)
(7)
Portfolio
Turnover
Rate
4‌
%
(4)
(8)
16‌
%
(4)
(8)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(7)
Amount
is
less
than
0.005%.
(8)
In-kind
transactions
are
not
included
in
portfolio
turnover
calculations.
16
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
"Trust")
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Act").
The
Trust
applies
investment
company
accounting
and
report-
ing guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the Calvert
US
Mid-Cap
Core
Responsible
Index
ETF (the
"Fund"),
which
seeks
to
track
the
performance
of
the
Calvert
US
Mid-
Cap
Core
Responsible
Index.
The
Fund
is
diversified.
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
An
equity
portfolio
security
list-
ed
or
traded
on
an
exchange
is
valued
at
its
latest
reported
sales
price
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price),
and
if
there
were
no
sales
on
a
given
day
and
if
there
is
no
official
ex-
change
closing
price
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
relevant
ex-
changes.
If
only
bid
prices
are
available
then
the
latest
bid
price
may
be
used.
Listed
equity
securities
not
traded
on
the
valuation
date
with
no
reported
bid
and
asked
prices
available
on
the
exchange
are
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers.
In
cases
where
a
securi-
ty
is
traded
on
more
than
one
exchange,
the
security
is
valued
on
the
exchange
designated
as
the
primary
market;
(2)
all
other
equity
portfolio
securities
for
which
over-the-
counter
(“OTC”)
market
quotations
are
readily
available
are
valued
at
the
latest
reported
sales
price
(or
at
the
mar-
ket
official
closing
price
if
such
market
reports
an
official
closing
price),
and
if
there
was
no
trading
in
the
security
on
a
given
day
and
if
there
is
no
official
closing
price
from
relevant
markets
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
rel-
evant
markets.
An
unlisted
equity
security
that
does
not
trade
on
the
valuation
date
and
for
which
bid
and
asked
prices
from
the
relevant
markets
are
unavailable
is
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers;
(3)
certain
portfolio
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
whol-
ly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable brokers/dealers;
(4)
when
market
quo-
tations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circumstances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
market
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees; and
(5)
investments
in
mutual
funds,
including
the
Morgan
Stanley
Institu-
tional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
4.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
quarterly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
5.
Security
Transactions
and Income:
 Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
income
at
fair
value.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:  
Common
Stocks
$
54,841‌
(1)
$
$
$
54,841
Short-Term
Investment
Investment
Company
45‌
45
Total
Assets
$
54,886‌
$—
$—
$54,886
(1)
The
level
classification
by
major
category
of
investments
is
the
same
as
the
category
presentation
in
the
Portfolio
of
Investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
18
Morgan
Stanley
ETF
Trust
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.15% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 50,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statements
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the six
months
ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $1,805,482
and
$1,543,455,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
for
the
six
months
ended
March
31,
2024. Purchase
and
Sales
related
to
In-Kind
transactions
were
$26,378,741 and
$2,789,185 for
the six
months ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
investment
in
the
Liquidity
Fund.
For
the
six
months ended
March
31,
2024, management
fees
paid
were
reduced
by $85 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
six
months ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
The
tax
year
ended
September
30,
2023 remains
subject
to
examination
by
taxing
authorities.
The
tax
character
of
distributions
paid
may
differ
from
the
character
of
distributions
shown
for
GAAP
purposes
due
to
short-term
capital
gains
being
treated
as
ordinary
income
for
tax
purposes.
The
tax
character
of
distributions
paid
during
fiscal
year 2023
was
as
follows: 
The
amount
and
character
of
income
and
gains
to
be
distrib-
uted
are
determined
in
accordance
with
income
tax
regulations
which
may
differ
from
GAAP.
These
book/tax
differences
are
either
considered
temporary
or
permanent
in
nature. 
Temporary
differences
are
attributable
to
differing
book
and
tax
treatments
for
the
timing
of
the
recognition
of
gains
(loss-
es)
on
certain
investment
transactions
and
the
timing
of
the
deductibility
of
certain
expenses. 
Permanent
differences,
due
to
a
tax
adjustment
related
to
an
in-kind
redemption,
resulted
in
the
following
reclassifications
among
the
components
of
net
assets
at
September
30,
2023:
At
September
30,
2023,
the
components
of
distributable
earn-
ings
for
the
Fund
on
a
tax
basis
were
as
follows: 
At
September
30,
2023,
the
Fund
had
available
for
fed-
eral
income
tax
purposes
unused
short-term
capital
losses
of $500,081 that
do
not
have
an
expiration
date. 
To
the
extent
that
capital
loss
carryforwards
are
used
to
offset
any
future
capital
gains
realized,
no
capital
gains
tax
liability
will
be
incurred
by
the
Fund
for
gains
realized
and
not
distrib-
uted.
To
the
extent
that
capital
gains
are
offset,
such
gains
will
not
be
distributed
to
the
shareholders. 
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
Affiliated
Investment
Company
Value
September
30,
2023
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
82
$
978
$
1,015
$
3
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
45
2023
Distributions
Paid
From:
Ordinary
Long-Term
Income
Capital
Gain
$181,123
$–
Total
Accumulated
Paid-In
Loss
Capital
$(386,376)
$386,376
Undistributed
Undistributed
Ordinary
Long-Term
Income
Capital
Gain
$21,873
$–
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
20
Morgan
Stanley
ETF
Trust
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
Tracking
Error
Risk:
Tracking
error
risk
refers
to
the
risk
that
the
Fund’s
performance
may
not
match
or
correlate
to
that
of
the
index
it
attempts
to
track,
either
on
a
daily
or
aggregate
basis.
Tracking
error
may
occur
because
of
transac-
tion
costs,
the
Fund’s
holding
of
cash,
differences
in
accrual
of
dividends,
changes
to
the
index
or
the
need
to
meet
new
or
existing
regulatory
requirements.
Factors
such
as
Fund
expens-
es,
imperfect
correlation
between
the
Fund’s
investments
and
the
index,
rounding
of
share
prices,
changes
to
the
composition
of
the
index,
regulatory
policies,
limitations
on
Fund
invest-
ments
imposed
by
Fund
diversification
and/or
concentration
policies,
high
portfolio
turnover
rate
and
the
use
of
leverage
all
contribute
to
tracking
error.
Unlike
the
Fund,
the
returns
of
the
index
are
not
reduced
by
investment
and
other
operating
expenses,
including
the
trading
costs
associated
with
imple-
menting
changes
to
its
portfolio
of
investments.
Tracking
error
risk
may
cause
the
Fund’s
performance
to
be
less
than
expected.
Tracking
error
risk
may
be
heightened
during
times
of
market
volatility,
unusual
market
conditions
or
other
abnormal
cir-
cumstances.
The
Fund
may
be
required
to
deviate
its
invest-
ments
from
the
securities
and
relative
weightings
of
the
index
to
comply
with
applicable
laws
and
regulations
or
because
of
market
restrictions
or
other
legal
reasons,
including
regulatory
limits
or
other
restrictions
on
securities
that
may
be
purchased
by
the
Adviser
and
its
affiliates.
If
the
Fund
uses
a
sampling
method
of
indexing,
it
may
have
a
larger
tracking
error
than
if
it
used
a
replication
method
of
indexing.
Index
Related
Risk:
The
Fund’s
return
may
not
track
the
return
of
the
index
for
a
number
of
reasons
and
therefore
may
not
achieve
its
investment
objective.
For
example,
the
Fund
incurs
a
number
of
operating
expenses
not
applicable
to
the
index,
and
incurs
costs
in
buying
and
selling
securities,
espe-
cially
when
rebalancing
the
Fund’s
securities
holdings
to
reflect
changes
in
the
composition
of
the
index.
In
addition,
the
Fund’s
return
may
differ
from
the
return
of
the
index
because
of,
among
other
things,
pricing
differences
and
the
inability
to
purchase
certain
securities
included
in
the
index
due
to
regu-
latory
or
other
restrictions.
In
addition,
because
the
Fund
uses
a
representative
sampling
approach,
the
Fund
can
be
expected
to
be
less
correlated
with
the
return
of
the
index
as
when
a
fund
purchases
all
of
the
securities
in
an
index
in
the
proportions
in
which
they
are
rep-
resented
in
the
index.
Errors
in
the
construction
or
calculation
of
the
index
may
occur
from
time
to
time.
Any
such
errors
may
not
be
identified
and
corrected
by
the
index
provider
for
some
period
of
time,
which
may
have
an
adverse
impact
on
the
Fund
and
its
shareholders.
The
risk
that
the
Fund
may
not
track
the
performance
of
the
index
may
be
heightened
during
times
of
increased
market
volatility
or
other
unusual
market
conditions. 
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
To
the
extent
that
these
inter-
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
21
Morgan
Stanley
ETF
Trust
mediaries
exit
the
business
or
are
unable
to
or
choose
not
to
proceed
with
creation
and/or
redemption
orders
with
respect
to
the
Fund,
such
as
during
periods
of
market
stress,
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.
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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.
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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.
22
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
23
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
The
Adviser
has
engaged
Calvert
to
provide
proxy
voting
services
with
respect
to
the
Trust.
The
Adviser’s
Proxy
Voting
Policy
speci-
fies
that
each
Fund
will
follow
Calvert’s
Proxy
Voting
Policies
and
Procedures
and
Global
Proxy
Voting
Guidelines.
When
available,
the
Trust’s
proxy
voting
record
for
the
most
recent
12-month
period
ending
June
30,
as
filed
with
the
SEC,
will
be
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
will
also
be
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
24
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
25
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
26
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
27
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
ETFCALUSMIDCAPCRISAN
6598361
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Calvert
US
Select
Equity
ETF
NYSE
Arca:
CVSE
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
8
Statement
of
Operations
....................................................................................
9
Statements
of
Changes
in
Net
Assets
.......................................................................
10
Financial
Highlights
.........................................................................................
11
Notes
to
Financial
Statements
...............................................................................
12
Liquidity
Risk
Management
Program
.........................................................................
18
Important
Notices
..........................................................................................
19
U.S.
Customer
Privacy
Notice
...............................................................................
20
Trustees
and
Officers
Information
...........................................................................
23
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Calvert
US
Select
Equity
ETF (the
“Fund”)
performed
during
the
latest
six-month
period.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Calvert
US
Select
Equity
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
six-month
period
ended
March
31,
2024 and
held
for
the
entire
six-month
period.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(
10/1/23
)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Calvert
US
Select
Equity
ETF
$1,000.00
$1,254.50
$1,023.55
$1.63
$1.47
0.29%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
183/366
(to
reflect
the
most
recent
one-half
year
period).
**
Annualized.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Calvert
US
Select
Equity
ETF
Morgan
Stanley
ETF
Trust
*
Cumulative
Return
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im
.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Russell
1000
®
Index
(1)
Period
Ended
March
31,
2024
Total
Returns
Average
Annual
Six
Months
*
One
Year
Since
Inception
(2)
Calvert
US
Select
Equity
ETF
-
NAV
(3)
25.45%
27.53%
24.62%
Calvert
US
Select
Equity
ETF
-
Market
Price
(3)
25.59%
27.70%
24.72%
Russell
1000
®
Index
23.49%
29.87%
27.61%
(1)
The
Russell
1000
®
Index
is
an
unmanaged
index
of
1,000
U.S.
large-cap
stocks.
The
Russell
1000
®
Index
is
an
index
of
approximately
1,000
of
the
largest
U.S.
companies
based
on
a
combination
of
market
capitalization
and
current
index
membership.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
(2)
For
comparative
purposes,
average
annual
since
inception
returns
listed
for
the
Index
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(3)
Commenced
operations
on
January
30,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Calvert
US
Select
Equity
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Common
Stocks
(99.6%)
Air
Freight
&
Logistics
(
0
.2
%
)
Expeditors
International
of
Washington,
Inc.
583
$
70,875
Automobiles
(
0
.9
%
)
General
Motors
Co.
5,744
260,490
Banks
(
2
.0
%
)
Citizens
Financial
Group,
Inc.
984
35,709
Fifth
Third
Bancorp
2,345
87,257
Huntington
Bancshares,
Inc.
5,643
78,720
KeyCorp
1,019
16,110
Regions
Financial
Corp.
2,277
47,908
Truist
Financial
Corp.
6,310
245,964
Webster
Financial
Corp.
1,537
78,034
589,702
Biotechnology
(
2
.3
%
)
Alnylam
Pharmaceuticals,
Inc.
(a)
496
74,127
Amgen,
Inc.
1,071
304,507
Exact
Sciences
Corp.
(a)
601
41,505
Gilead
Sciences,
Inc.
2,147
157,268
Moderna,
Inc.
(a)
68
7,246
Regeneron
Pharmaceuticals,
Inc.
(a)
41
39,462
Vertex
Pharmaceuticals,
Inc.
(a)
130
54,341
678,456
Broadline
Retail
(
0
.4
%
)
eBay,
Inc.
1,135
59,905
Etsy,
Inc.
(a)
105
7,216
Macy's,
Inc.
1,895
37,881
105,002
Building
Products
(
0
.7
%
)
Trane
Technologies
plc
657
197,231
Capital
Markets
(
4
.5
%
)
Charles
Schwab
Corp.
(The)
2,473
178,897
FactSet
Research
Systems,
Inc.
146
66,341
Franklin
Resources,
Inc.
596
16,754
Intercontinental
Exchange,
Inc.
1,715
235,692
LPL
Financial
Holdings,
Inc.
127
33,553
Morningstar,
Inc.
284
87,577
MSCI,
Inc.,
Class
 A
51
28,583
Nasdaq,
Inc.
1,630
102,853
S&P
Global,
Inc.
998
424,599
State
Street
Corp.
1,349
104,305
T
Rowe
Price
Group,
Inc.
419
51,084
1,330,238
Chemicals
(
2
.6
%
)
Ecolab,
Inc.
887
204,808
FMC
Corp.
1,030
65,611
Linde
plc
451
209,409
Mosaic
Co.
(The)
2,981
96,763
Sherwin-Williams
Co.
(The)
499
173,318
749,909
Commercial
Services
&
Supplies
(
0
.6
%
)
Cintas
Corp.
67
46,031
MSA
Safety,
Inc.
411
79,565
Tetra
Tech,
Inc.
128
23,643
Shares
Value
Veralto
Corp.
157
$
13,920
163,159
Communications
Equipment
(
1
.1
%
)
Ciena
Corp.
(a)
253
12,511
Cisco
Systems,
Inc.
4,812
240,167
Lumentum
Holdings,
Inc.
(a)
191
9,044
Motorola
Solutions,
Inc.
150
53,247
314,969
Consumer
Finance
(
1
.3
%
)
American
Express
Co.
852
193,992
Capital
One
Financial
Corp.
415
61,789
Discover
Financial
Services
1,004
131,615
387,396
Consumer
Staples
Distribution
&
Retail
(
0
.7
%
)
Target
Corp.
1,174
208,045
Containers
&
Packaging
(
0
.5
%
)
Ball
Corp.
2,048
137,953
Distributors
(
0
.1
%
)
Genuine
Parts
Co.
227
35,169
Diversified
Consumer
Services
(
0
.4
%
)
Bright
Horizons
Family
Solutions,
Inc.
(a)
677
76,744
Service
Corp.
International
694
51,502
128,246
Diversified
Telecommunication
Services
(
1
.0
%
)
Verizon
Communications,
Inc.
7,011
294,182
Electric
Utilities
(
0
.9
%
)
Eversource
Energy
3,308
197,719
NextEra
Energy,
Inc.
1,131
72,282
270,001
Electrical
Equipment
(
2
.8
%
)
Eaton
Corp.
plc
1,908
596,593
Emerson
Electric
Co.
1,162
131,794
Rockwell
Automation,
Inc.
344
100,218
828,605
Entertainment
(
2
.9
%
)
Electronic
Arts,
Inc.
197
26,136
Netflix,
Inc.
(a)
621
377,152
Walt
Disney
Co.
(The)
3,619
442,821
846,109
Financial
Services
(
3
.5
%
)
Fidelity
National
Information
Services,
Inc.
565
41,911
Mastercard,
Inc.,
Class
 A
940
452,676
MGIC
Investment
Corp.
1,190
26,608
PayPal
Holdings,
Inc.
(a)
913
61,162
Rocket
Cos.,
Inc.,
Class
 A
(a)
1,405
20,443
Visa,
Inc.,
Class
 A
1,486
414,713
1,017,513
Food
Products
(
2
.0
%
)
Darling
Ingredients,
Inc.
(a)
168
7,814
General
Mills,
Inc.
4,493
314,375
JM
Smucker
Co.
(The)
1,151
144,877
McCormick
&
Co.,
Inc.
(Non-Voting)
1,435
110,222
577,288
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Select
Equity
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Ground
Transportation
(
0
.1
%
)
Knight-Swift
Transportation
Holdings,
Inc.,
Class
 A
360
$
19,807
Health
Care
Equipment
&
Supplies
(
2
.3
%
)
Boston
Scientific
Corp.
(a)
1,551
106,228
Edwards
Lifesciences
Corp.
(a)
1,404
134,166
Hologic,
Inc.
(a)
1,153
89,888
IDEXX
Laboratories,
Inc.
(a)
227
122,564
ResMed,
Inc.
525
103,966
STERIS
plc
522
117,356
674,168
Health
Care
Providers
&
Services
(
1
.0
%
)
DaVita,
Inc.
(a)
226
31,199
Humana,
Inc.
505
175,094
Laboratory
Corp.
of
America
Holdings
293
64,009
Quest
Diagnostics,
Inc.
108
14,376
284,678
Health
Care
REITs
(
0
.1
%
)
Ventas,
Inc.
683
29,738
Hotel
&
Resort
REITs
(
0
.1
%
)
Host
Hotels
&
Resorts,
Inc.
901
18,633
Hotels,
Restaurants
&
Leisure
(
0
.7
%
)
Darden
Restaurants,
Inc.
572
95,610
Planet
Fitness,
Inc.,
Class
 A
(a)
291
18,225
Vail
Resorts,
Inc.
450
100,274
214,109
Household
Products
(
0
.4
%
)
Church
&
Dwight
Co.,
Inc.
301
31,397
Clorox
Co.
(The)
574
87,885
119,282
Industrial
REITs
(
0
.8
%
)
Prologis,
Inc.
1,743
226,973
Insurance
(
4
.5
%
)
Allstate
Corp.
(The)
201
34,775
Hartford
Financial
Services
Group,
Inc.
(The)
589
60,696
MetLife,
Inc.
4,781
354,320
Primerica,
Inc.
260
65,770
Progressive
Corp.
(The)
1,779
367,933
Prudential
Financial,
Inc.
1,918
225,173
Travelers
Cos.,
Inc.
(The)
902
207,586
1,316,253
IT
Services
(
2
.2
%
)
Accenture
plc,
Class
 A
1,541
534,126
Akamai
Technologies,
Inc.
(a)
493
53,619
Snowflake,
Inc.,
Class
 A
(a)
134
21,655
Twilio,
Inc.,
Class
 A
(a)
282
17,244
VeriSign,
Inc.
(a)
130
24,636
651,280
Leisure
Products
(
0
.4
%
)
Hasbro,
Inc.
1,541
87,097
Mattel,
Inc.
(a)
1,396
27,655
114,752
Life
Sciences
Tools
&
Services
(
1
.4
%
)
Agilent
Technologies,
Inc.
891
129,649
Danaher
Corp.
470
117,368
Shares
Value
Fortrea
Holdings,
Inc.
(a)
296
$
11,882
Waters
Corp.
(a)
182
62,650
West
Pharmaceutical
Services,
Inc.
246
97,345
418,894
Machinery
(
5
.2
%
)
Caterpillar,
Inc.
772
282,884
Cummins,
Inc.
970
285,810
Deere
&
Co.
422
173,332
Illinois
Tool
Works,
Inc.
793
212,786
Parker-Hannifin
Corp.
759
421,845
Pentair
plc
763
65,191
Stanley
Black
&
Decker,
Inc.
342
33,492
Xylem,
Inc.
360
46,526
1,521,866
Media
(
0
.8
%
)
Interpublic
Group
of
Cos.,
Inc.
(The)
2,757
89,961
Omnicom
Group,
Inc.
1,576
152,494
242,455
Metals
&
Mining
(
0
.9
%
)
Nucor
Corp.
1,331
263,405
Multi-Utilities
(
0
.5
%
)
Consolidated
Edison,
Inc.
780
70,832
Sempra
1,154
82,892
153,724
Office
REITs
(
0
.0
%
)
(b)
Boston
Properties,
Inc.
185
12,082
Personal
Care
Products
(
0
.6
%
)
Estee
Lauder
Cos.,
Inc.
(The),
Class
 A
1,072
165,249
Pharmaceuticals
(
6
.2
%
)
Bristol-Myers
Squibb
Co.
2,632
142,734
Eli
Lilly
&
Co.
1,091
848,754
Merck
&
Co.,
Inc.
5,626
742,351
Pfizer,
Inc.
3,247
90,104
1,823,943
Professional
Services
(
2
.2
%
)
Automatic
Data
Processing,
Inc.
750
187,305
FTI
Consulting,
Inc.
(a)
308
64,769
Genpact
Ltd.
787
25,932
ManpowerGroup,
Inc.
396
30,746
Paylocity
Holding
Corp.
(a)
63
10,827
Robert
Half,
Inc.
187
14,825
Verisk
Analytics,
Inc.,
Class
 A
1,344
316,821
651,225
Real
Estate
Management
&
Development
(
0
.4
%
)
CBRE
Group,
Inc.,
Class
 A
(a)
186
18,087
Jones
Lang
LaSalle,
Inc.
(a)
483
94,228
112,315
Residential
REITs
(
0
.2
%
)
Equity
Residential
783
49,415
Retail
REITs
(
0
.5
%
)
Brixmor
Property
Group,
Inc.
652
15,289
Kimco
Realty
Corp.
948
18,590
Simon
Property
Group,
Inc.
650
101,719
135,598
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Calvert
US
Select
Equity
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Semiconductors
&
Semiconductor
Equipment
(
8
.6
%
)
Advanced
Micro
Devices,
Inc.
(a)
985
$
177,783
Applied
Materials,
Inc.
902
186,019
First
Solar,
Inc.
(a)
165
27,852
Intel
Corp.
4,110
181,539
Micron
Technology,
Inc.
1,113
131,211
NVIDIA
Corp.
1,830
1,653,515
ON
Semiconductor
Corp.
(a)
251
18,461
Texas
Instruments,
Inc.
741
129,090
2,505,470
Software
(
13
.0
%
)
Adobe,
Inc.
(a)
402
202,849
Autodesk,
Inc.
(a)
375
97,658
Cadence
Design
Systems,
Inc.
(a)
450
140,076
HubSpot,
Inc.
(a)
143
89,598
Intuit,
Inc.
224
145,600
Microsoft
Corp.
5,737
2,413,671
Salesforce,
Inc.
999
300,879
ServiceNow,
Inc.
(a)
341
259,978
Synopsys,
Inc.
(a)
133
76,009
Workday,
Inc.,
Class
 A
(a)
327
89,189
3,815,507
Specialized
REITs
(
1
.4
%
)
American
Tower
Corp.
1,036
204,703
Equinix,
Inc.
28
23,109
Extra
Space
Storage,
Inc.
76
11,172
Iron
Mountain,
Inc.
1,938
155,447
394,431
Specialty
Retail
(
4
.0
%
)
Best
Buy
Co.,
Inc.
839
68,823
Dick's
Sporting
Goods,
Inc.
94
21,137
Gap,
Inc.
(The)
1,633
44,989
Home
Depot,
Inc.
(The)
1,042
399,711
Lowe's
Cos.,
Inc.
887
225,946
O'Reilly
Automotive,
Inc.
(a)
51
57,573
TJX
Cos.,
Inc.
(The)
989
100,304
Tractor
Supply
Co.
324
84,797
Ulta
Beauty,
Inc.
(a)
278
145,361
Williams-Sonoma,
Inc.
105
33,341
1,181,982
Technology
Hardware,
Storage
&
Peripherals
(
6
.7
%
)
Apple,
Inc.
10,186
1,746,696
Hewlett
Packard
Enterprise
Co.
8,181
145,049
HP,
Inc.
2,610
78,874
1,970,619
Textiles,
Apparel
&
Luxury
Goods
(
1
.1
%
)
Capri
Holdings
Ltd.
(a)
543
24,598
Lululemon
Athletica,
Inc.
(a)
351
137,118
NIKE,
Inc.,
Class
 B
1,055
99,149
Ralph
Lauren
Corp.,
Class
 A
129
24,221
Tapestry,
Inc.
834
39,598
324,684
Trading
Companies
&
Distributors
(
1
.2
%
)
Core
&
Main,
Inc.,
Class
 A
(a)
233
13,339
Ferguson
plc
751
164,041
Shares
Value
United
Rentals,
Inc.
258
$
186,047
363,427
Water
Utilities
(
0
.7
%
)
American
Water
Works
Co.,
Inc.
1,604
196,025
Total
Common
Stocks
(Cost
$22,870,680)
29,162,527
Short-Term
Investment
(
0
.3
%
)
Investment
Company
(0.3%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(
See
Note
G
)
(Cost
$78,392)
78,392
78,392
Total
Investments
(
99
.9
%
)
(Cost
$
22,949,072
)
(c)
29,240,919
Other
Assets
in
Excess
of
Liabilities
(0.1%)
26,853
NET
ASSETS
(100.0%)
$29,267,772
(a)
Non-income
producing
security.
(b)
Amount
is
less
than
0.05%.
(c)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$22,949,072.
The
aggregate
gross
unrealized
appreciation
is
$6,999,751
and
the
aggregate
gross
unrealized
depreciation
is
$707,904,
resulting
in
net
unrealized
appreciation
of
$6,291,847.
REIT
Real
Estate
Investment
Trust
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
60
.3
%
Software
13
.0
Semiconductors
&
Semiconductor
Equipment
8
.6
Technology
Hardware,
Storage
&
Peripherals
6
.7
Pharmaceuticals
6
.2
Machinery
5
.2
Total
Investments
100
.0
%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
US
Select
Equity
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$22,870,680)
$
29,162,527
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$78,392)
78,392
Total
Investments
in
Securities,
at
Value
(Cost
$22,949,072)
29,240,919
Cash
9,972
Dividends
Receivable
23,946
Total
Assets
29,274,837
Liabilities:
Payable
for
Management
Fee
7,065
Total
Liabilities
7,065
Net
Assets
$
29,267,772
Net
Assets
Consist
of:
Paid-in-Capital
$
23,340,146
Total
Distributable
Earnings
5,927,626
Net
Assets
$
29,267,772
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
460,000
Net
Asset
Value
Per
Share
$
63
.63
Semi-Annual
Report
March
31,
2024
(unaudited)
Calvert
US
Select
Equity
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Six
Months
Ended
March
31,
2024
Investment
Income:
Dividends
from
Securities
of
Unaffiliated
Issuers
$
212,122
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
1,479
Total
Investment
Income
213,601
Expenses:
Management
Fee
(Note
B)
37,503
Total
Expenses
37,503
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(
44
)
Net
Expenses
37,459
Net
Investment
Income
176,142
Realized
Gain
(Loss):
Investments
Sold
(
87,681
)
Net
Realized
Loss
(
87,681
)
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
5,896,792
Net
Change
in
Unrealized
Appreciation
(Depreciation)
5,896,792
Net
Realized
Loss
and
Change
in
Unrealized
Appreciation
(Depreciation)
5,809,111
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
5,985,253
Semi-Annual
Report
March
31,
2024
Calvert
US
Select
Equity
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statements
of
Changes
in
Net
Assets
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
^
to
September
30,
2023
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
176,142
$
216,600
Net
Realized
Gain
(Loss)
(
87,681
)
32,125
Net
Change
in
Unrealized
Appreciation
(Depreciation)
5,896,792
395,055
Net
Increase
in
Net
Assets
Resulting
from
Operations
5,985,253
643,780
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(
174,439
)
(
196,967
)
Total
Dividends
and
Distributions
to
Shareholders
(
174,439
)
(
196,967
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Subscribed
In-Kind
1,507,121
3,042,264
Redeemed
In-Kind
(
1,539,240
)
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
1,507,121
21,503,024
Total
Increase
in
Net
Assets
7,317,935
21,949,837
Net
Assets:
Beginning
of
Period
21,949,837
End
of
Period
$
29,267,772
$
21,949,837
Capital
Share
Transactions:
Beginning
of
Period
430,000
Shares
Subscribed
400,000
Shares
Subscribed
In-Kind
30,000
60,000
Shares
Redeemed
In-Kind
(
30,000
)
Shares
Outstanding,
End
of
Period
Net
Increase
in
460,000
430,000
^
Commencement
of
Operations
(1)
Total
consists
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Calvert
US
Select
Equity
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Six
Months
Ended
March
31,
2024
(unaudited)
Period
from
January
30,
2023
(1)
to
September
30,
2023
Net
Asset
Value,
Beginning
of
Period
$
51
.05‌
$
50
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
0
.39‌
0
.50‌
Net
Realized
and
Unrealized
Gain
12
.57‌
1
.01‌
Total
from
Investment
Operations
12
.96‌
1
.51‌
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
0
.38‌
)
(
0
.46‌
)
Net
Asset
Value,
End
of
Period
$
63
.63‌
$
51
.05‌
Total
Return
(3)
25
.45‌
%
(4)
3
.00‌
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$29,268
$21,950
Net
Assets,
End
of
Period
(Thousands)
$
29,268‌
$
21,950‌
Ratio
of
Expenses
0
.29‌
%
(5)
(6)
0
.29‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
1
.36‌
%
(5)
(6)
1
.45‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.00‌
%
(5)
(7)
0
.00‌
%
(5)
(7)
Portfolio
Turnover
Rate
4‌
%
(4)
(8)
18‌
%
(4)
(8)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(7)
Amount
is
less
than
0.005%.
(8)
In-kind
transactions
are
not
included
in
portfolio
turnover
calculations.
12
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
"Trust")
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Act").
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Calvert
US
Select
Equity
ETF
 (the
"Fund"),
which
seeks
to
provide
long-term
capital
appreciation.
The
Fund
is
diversified.
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
An
equity
portfolio
security
list-
ed
or
traded
on
an
exchange
is
valued
at
its
latest
reported
sales
price
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price),
and
if
there
were
no
sales
on
a
given
day
and
if
there
is
no
official
ex-
change
closing
price
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
relevant
ex-
changes.
If
only
bid
prices
are
available
then
the
latest
bid
price
may
be
used.
Listed
equity
securities
not
traded
on
the
valuation
date
with
no
reported
bid
and
asked
prices
available
on
the
exchange
are
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers.
In
cases
where
a
securi-
ty
is
traded
on
more
than
one
exchange,
the
security
is
valued
on
the
exchange
designated
as
the
primary
market;
(2)
all
other
equity
portfolio
securities
for
which
over-the-
counter
(“OTC”)
market
quotations
are
readily
available
are
valued
at
the
latest
reported
sales
price
(or
at
the
mar-
ket
official
closing
price
if
such
market
reports
an
official
closing
price),
and
if
there
was
no
trading
in
the
security
on
a
given
day
and
if
there
is
no
official
closing
price
from
relevant
markets
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
rel-
evant
markets.
An
unlisted
equity
security
that
does
not
trade
on
the
valuation
date
and
for
which
bid
and
asked
prices
from
the
relevant
markets
are
unavailable
is
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers;
(3)
certain
portfolio
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
whol-
ly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable brokers/dealers;
(4)
when
market
quo-
tations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circumstances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
market
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees; and
(5)
investments
in
mutual
funds,
including
the
Morgan
Stanley
Institu-
tional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
13
Morgan
Stanley
ETF
Trust
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
4.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
quarterly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
5.
Security
Transactions
and Income:
Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
at
fair
value.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:  
Common
Stocks
$
29,163‌
(1)
$
$
$
29,163
Short-Term
Investment
Investment
Company
78‌
78
Total
Assets
$
29,241‌
$—
$—
$29,241
(1)
The
level
classification
by
major
category
of
investments
is
the
same
as
the
category
presentation
in
the
Portfolio
of
Investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
14
Morgan
Stanley
ETF
Trust
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.29% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 30,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statements
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affili-
ates:
 For
the six
months
ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-
term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $993,343
and
$1,049,393,
respec-
tively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
for
the
six
months
ended
March
31,
2024. Purchase
and
Sales
related
to
In-Kind
transactions
were
$1,503,548 and
$0 for
the six
months ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
investment
in
the
Liquidity
Fund.
For
the
six
months ended
March
31,
2024, management
fees
paid
were
reduced
by $44 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
15
Morgan
Stanley
ETF
Trust
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
six
months ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
The
tax
year
ended
September
30,
2023 remains
subject
to
examination
by
taxing
authorities.
The
tax
character
of
distributions
paid
may
differ
from
the
character
of
distributions
shown
for
GAAP
purposes
due
to
short-term
capital
gains
being
treated
as
ordinary
income
for
tax
purposes.
The
tax
character
of
distributions
paid
during
fiscal
year 2023
was
as
follows: 
.
The
amount
and
character
of
income
and
gains
to
be
distrib-
uted
are
determined
in
accordance
with
income
tax
regulations
which
may
differ
from
GAAP.
These
book/tax
differences
are
either
considered
temporary
or
permanent
in
nature. 
Temporary
differences
are
attributable
to
differing
book
and
tax
treatments
for
the
timing
of
the
recognition
of
gains
(loss-
es)
on
certain
investment
transactions
and
the
timing
of
the
deductibility
of
certain
expenses. 
Permanent
differences,
due
to
a
tax
adjustment
related
to
an
in-kind
redemption,
resulted
in
the
following
reclassifications
among
the
components
of
net
assets
at
September
30,
2023:
At
September
30,
2023,
the
components
of
distributable
earn-
ings
for
the
Fund
on
a
tax
basis
were
as
follows: 
At
September
30,
2023,
the
Fund
had
available
for
fed-
eral
income
tax
purposes
unused
short-term
capital
losses
of $297,876 that
do
not
have
an
expiration
date. 
To
the
extent
that
capital
loss
carryforwards
are
used
to
offset
any
future
capital
gains
realized,
no
capital
gains
tax
liability
will
be
incurred
by
the
Fund
for
gains
realized
and
not
distrib-
uted.
To
the
extent
that
capital
gains
are
offset,
such
gains
will
not
be
distributed
to
the
shareholders. 
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
Affiliated
Investment
Company
Value
September
30,
2023
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
29
$
334
$
285
$
1
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
78
2023
Distributions
Paid
From:
Ordinary
Long-Term
Income
Capital
Gain
$196,967
$–
Total
Distributable
Paid-In
Earnings
Capital
$(330,001)
$330,001
Undistributed
Undistributed
Ordinary
Long-Term
Income
Capital
Gain
$19,633
$–
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
16
Morgan
Stanley
ETF
Trust
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
To
the
extent
that
these
inter-
mediaries
exit
the
business
or
are
unable
to
or
choose
not
to
proceed
with
creation
and/or
redemption
orders
with
respect
to
the
Fund,
such
as
during
periods
of
market
stress,
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.
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
impact
the
Fund’s
NAV
and
liquidity.
Similarly,
large
Fund
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
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
circumstanc-
es,
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. 
18
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
19
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
The
Adviser
has
engaged
Calvert
to
provide
proxy
voting
services
with
respect
to
the
Trust.
The
Adviser’s
Proxy
Voting
Policy
speci-
fies
that
each
Fund
will
follow
Calvert’s
Proxy
Voting
Policies
and
Procedures
and
Global
Proxy
Voting
Guidelines.
When
available,
the
Trust’s
proxy
voting
record
for
the
most
recent
12-month
period
ending
June
30,
as
filed
with
the
SEC,
will
be
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
will
also
be
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
20
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
21
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
22
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
23
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
ETFCALUSELEQTYSAN
6598510
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Eaton
Vance
Floating-Rate
ETF
NYSE
Arca:
EVLN
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
14
Statement
of
Operations
....................................................................................
15
Statement
of
Changes
in
Net
Assets
........................................................................
16
Financial
Highlights
.........................................................................................
17
Notes
to
Financial
Statements
...............................................................................
18
Investment
Advisory
Agreement
Approval
....................................................................
24
Liquidity
Risk
Management
Program
.........................................................................
26
Important
Notices
..........................................................................................
27
U.S.
Customer
Privacy
Notice
...............................................................................
28
Trustees
and
Officers
Information
...........................................................................
31
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Eaton
Vance
Floating-Rate
ETF (the
“Fund”)
performed
during
the
period
beginning
February
6,
2024
(when
the
Fund
commenced
operations)
and
ended
March
31,
2024.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Eaton
Vance
Floating-Rate
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include
man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
2/6/24-
3/31/24.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(2/6/24)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Eaton
Vance
Floating-Rate
ETF
^
$1,000.00
$1,009.80
$1,006.66
$0.86
$0.86
0.57%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
55/366
(to
reflect
the
actual
days
in
the
period).
**
Annualized.
^
The
Fund
commenced
operations
on
February
6,
2024.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Eaton
Vance
Floating-Rate
ETF
Morgan
Stanley
ETF
Trust
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Returns
for
periods
less
than
one
year
are
not
annualized.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Bloomberg
U.S.
Universal
Index
(1)
and
the
Morningstar
LSTA
U.S.
Leveraged
Loan
Total
Return
Index
(2)
Cumulative
Total
Return
for
the
Period
Ended
March
31,
2024
Since
Inception
(3)
Eaton
Vance
Floating-Rate
ETF
-
NAV
(4)
0.98%
Eaton
Vance
Floating-Rate
ETF
-
Market
Price
(4)
1.28%
Bloomberg
U.S.
Universal
Index
0.37%
Morningstar
LSTA
U.S.
Leveraged
Loan
Total
Return
Index
1.67%
(1)
The
Bloomberg
U.S.
Universal
Index
represents
the
union
of
the
U.S.
Aggregate
Index,
U.S.
Corporate
High
Yield
Index,
Investment
Grade
144A
Index,
Eurodollar
Index,
U.S.
Emerging
Markets
Index,
and
the
non-Employee
Retirement
Income
Security
Act
of
1974
(non-ERISA)
eligible
portion
of
the
CMBS
Index.
The
index
covers
U.S.
dollar-denominated,
taxable
bonds
that
are
rated
either
investment
grade
or
high-yield.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
The
Fund’s
primary
benchmark
index
was
changed
from
the
Morningstar
LSTA
U.S.
Leveraged
Loan
Total
Return
Index
to
the
Bloomberg
U.S.
Universal
Index
to
comply
with
the
regulation
that
requires
the
Fund’s
primary
benchmark
to
represent
the
overall
applicable
market.
(2)
Morningstar
LSTA
U.S.
Leveraged
Loan
Total
Return
Index
is
an
unmanaged
index
of
the
U.S.
leveraged
loan
market.
Prior
to
August
29,
2022,
the
index
name
was
S&P/LSTA
Leveraged
Loan
Index.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
Historical
performance
of
the
index
illustrates
market
trends
and
does
not
represent
the
past
or
future
performance
of
the
Fund.
(3)
For
comparative
purposes,
cumulative
total
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(4)
Commenced
operations
on
February
6,
2024.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Eaton
Vance
Floating-Rate
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Fixed
Income
Securities
(99.5%)
Asset-Backed
Securities
(
1.2%
)
ARES
LIV
CLO
Ltd.,
2019-54A
CME
Term
SOFR
3
Month
+
7.60%,
12.92%,
10/15/32(a)(b)
$
1,000,000‌
$
1,000,168‌
BlueMountain
CLO
XXXIV
Ltd.,
2022-34A
CME
Term
SOFR
3
Month
+
7.55%,
12.87%,
4/20/35(a)(b)
1,000,000‌
973,664‌
Carlyle
US
CLO
Ltd.,
2021-7A
CME
Term
SOFR
3
Month
+
6.51%,
11.83%,
10/15/35(a)(b)
1,000,000‌
1,003,387‌
CIFC
Funding
Ltd.,
2022-1A
CME
Term
SOFR
3
Month
+
6.40%,
11.72%,
4/17/35(a)(b)
1,000,000‌
1,003,192‌
Neuberger
Berman
Loan
Advisers
CLO
46
Ltd.,
2021-46A
CME
Term
SOFR
3
Month
+
6.51%,
11.83%,
1/20/36(a)(b)
777,387‌
772,058‌
Oaktree
CLO
Ltd.,
2021-2A
CME
Term
SOFR
3
Month
+
7.38%,
12.70%,
1/15/35(a)(b)
1,000,000‌
1,002,534‌
Regatta
VI
Funding
Ltd.,
2016-1A
CME
Term
SOFR
3
Month
+
7.01%,
12.33%,
4/20/34(a)(b)
1,000,000‌
1,002,563‌
6,757,566
Corporate
Bonds
(
8.8%
)
Automobile
Components
(1.1%)
Clarios
Global
LP
6.25%,
5/15/26(a)
6,000,000‌
6,001,486‌
Building
Products
(0.4%)
Smyrna
Ready
Mix
Concrete
LLC
8.88%,
11/15/31(a)
2,300,000‌
2,460,324‌
Capital
Markets
(0.2%)
AG
Issuer
LLC
6.25%,
3/1/28(a)
1,150,000‌
1,127,067‌
Chemicals
(0.9%)
INEOS
Finance
plc
7.50%,
4/15/29(a)
2,500,000‌
2,510,830‌
Olympus
Water
US
Holding
Corp.
9.75%,
11/15/28(a)
2,300,000‌
2,452,873‌
4,963,703
Commercial
Services
&
Supplies
(0.3%)
Allied
Universal
Holdco
LLC
4.63%,
6/1/28(a)
300,000‌
273,018‌
Madison
IAQ
LLC
4.13%,
6/30/28(a)
1,300,000‌
1,203,520‌
1,476,538
Face
Amount
Value
Construction
&
Engineering
(0.3%)
Artera
Services
LLC
8.50%,
2/15/31(a)
$
1,700,000‌
$
1,744,154‌
Containers
&
Packaging
(0.1%)
Pactiv
Evergreen
Group
Issuer
LLC
4.38%,
10/15/28(a)
300,000‌
280,181‌
Entertainment
(0.1%)
Live
Nation
Entertainment,
Inc.
3.75%,
1/15/28(a)
800,000‌
742,117‌
Hotel
&
Resort
REITs
(0.2%)
Park
Intermediate
Holdings
LLC
5.88%,
10/1/28(a)
1,300,000‌
1,275,049‌
Hotels,
Restaurants
&
Leisure
(1.4%)
Caesars
Entertainment,
Inc.
6.50%,
2/15/32(a)
2,500,000‌
2,523,577‌
Fertitta
Entertainment
LLC
4.63%,
1/15/29(a)
2,300,000‌
2,111,287‌
NCL
Corp.
Ltd.
5.88%,
2/15/27(a)
3,500,000‌
3,460,319‌
8,095,183
Insurance
(1.5%)
Alliant
Holdings
Intermediate
LLC
7.00%,
1/15/31(a)
3,500,000‌
3,537,709‌
AmWINS
Group,
Inc.
6.38%,
2/15/29(a)
3,000,000‌
3,018,069‌
Panther
Escrow
Issuer
LLC
7.13%,
6/1/31(a)
2,000,000‌
2,035,020‌
8,590,798
Machinery
(0.1%)
TK
Elevator
US
Newco,
Inc.
5.25%,
7/15/27(a)
500,000‌
483,612‌
Oil,
Gas
&
Consumable
Fuels
(0.6%)
CITGO
Petroleum
Corp.
7.00%,
6/15/25(a)
3,400,000‌
3,397,885‌
Passenger
Airlines
(0.4%)
American
Airlines,
Inc.
5.75%,
4/20/29(a)
2,500,000‌
2,459,376‌
Professional
Services
(0.0%)(c)
CoreLogic,
Inc.
4.50%,
5/1/28(a)
100,000‌
89,775‌
Real
Estate
Management
&
Development
(0.2%)
Cushman
&
Wakefield
US
Borrower
LLC
6.75%,
5/15/28(a)
1,150,000‌
1,136,509‌
Software
(1.0%)
Central
Parent,
Inc.
7.25%,
6/15/29(a)
3,400,000‌
3,474,635‌
Cloud
Software
Group,
Inc.
9.00%,
9/30/29(a)
1,750,000‌
1,680,126‌
GoTo
Group,
Inc.
5.50%,
5/1/28(a)
250,000‌
217,188‌
5,371,949
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Floating-Rate
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(8.8%)
(cont’d)
Specialty
Retail
(0.0%)(c)
PetSmart,
Inc.
4.75%,
2/15/28(a)
$
150,000‌
$
140,582‌
49,836,288
Variable
Rate
Senior
Loan
Interests  (
89.5%
)
Aerospace
&
Defense
(1.7%)
Dynasty
Acquisition
Co.,
Inc.,
2023
Specified
Refinancing
Term
Loan,
B1,
CME
Term
SOFR
1
Month
+
4.00%,
9.33%,
8/24/28(b)
2,950,000‌
2,958,295‌
2023
Specified
Refinancing
Term
Loan,
B2,
CME
Term
SOFR
1
Month
+
4.00%,
9.33%,
8/24/28(b)
1,250,000‌
1,253,515‌
TransDigm
,
Inc.,
Term
Loan,
I,
TBD,
8/24/28(b)
5,775,000‌
5,800,988‌
10,012,798
Automobile
Components
(2.1%)
Adient
US
LLC,
Term
Loan,
B2,
CME
Term
SOFR
1
Month
+
2.75%,
8.08%,
1/31/31(b)
5,000,000‌
5,017,855‌
Autokiniton
U.S.
Holdings,
Inc.,
2024
Replacement
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
4.00%,
9.44%,
4/06/28(b)
5,087,250‌
5,110,417‌
DexKo
Global,
Inc.,
First
Lien,
Closing
Date
Term
Loan,
CME
Term
SOFR
3
Month
+
3.75%,
9.32%,
10/04/28(b)
1,695,674‌
1,681,415‌
11,809,687
Automobiles
(0.2%)
American
Trailer
World
Corp.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.18%,
3/03/28(b)
1,200,000‌
1,173,167‌
Beverages
(0.8%)
City
Brewing
Co.
LLC,
First
Lien,
Closing
Date
Term
Loan,
CME
Term
SOFR
3
Month
+
3.50%,
9.08%,
4/05/28(b)
149,616‌
117,449‌
Triton
Water
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
3.25%,
9.06%,
3/31/28(b)
4,298,718‌
4,259,312‌
4,376,761
Building
Products
(3.4%)
ACProducts
Holdings,
Inc.,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.25%,
9.81%,
5/17/28(b)
1,249,615‌
1,142,877‌
Chariot
Buyer
LLC,
First
Lien,
Amendment
No.
2
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.08%,
11/03/28(b)
4,300,000‌
4,314,108‌
Face
Amount
Value
Cornerstone
Building
Brands,
Inc.,
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
3.25%,
8.68%,
4/12/28(b)
$
1,994,859‌
$
1,988,469‌
LHS
Borrower
LLC,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
4.75%,
10.18%,
2/16/29(b)
199,483‌
189,841‌
MIWD
Holdco
II
LLC,
Term
Loan,
TBD,
3/20/31(b)
450,000‌
452,672‌
Oscar
AcquisitionCo
LLC,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
4.50%,
9.90%,
4/29/29(b)
4,987,342‌
5,005,351‌
Quikrete
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
2.63%,
8.07%,
2/01/27(b)
4,986,979‌
4,997,267‌
Standard
Building
Solutions,
Inc.,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
2.25%,
7.69%,
9/22/28(b)
495,977‌
496,786‌
18,587,371
Capital
Markets
(3.9%)
Aragon
Parent
Corp.,
2023
Replacement
Term
Loan,
CME
Term
SOFR
1
Month
+
4.25%,
9.58%,
12/15/28(b)
4,987,500‌
5,013,684‌
Aretec
Group,
Inc.,
Term
Loan,
B1,
CME
Term
SOFR
1
Month
+
4.50%,
9.93%,
8/09/30(b)
5,386,432‌
5,421,778‌
Edelman
Financial
Engines
Center
LLC
(The),
First
Lien,
2021
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.50%,
8.94%,
4/07/28(b)
2,493,590‌
2,496,969‌
Focus
Financial
Partners
LLC,
Term
Loan,
B7,
CME
Term
SOFR
1
Month
+
2.75%,
8.08%,
6/30/28(b)
773,063‌
771,774‌
Osmosis
Buyer
Ltd.,
2022
Refinancing
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
3.75%,
9.07%,
7/31/28(b)
4,289,086‌
4,298,471‌
WEC
US
Holdings
Ltd.,
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
2.75%,
8.08%,
1/27/31(b)
3,700,000‌
3,699,486‌
21,702,162
Chemicals
(3.3%)
Axalta
Coating
Systems
Dutch
Holdings
B
BV,
Dollar
Facility
Retired
Term
Loan,
B5,
CME
Term
SOFR
1
Month
+
2.50%,
TBD,
12/20/29(b)
5,750,000‌
5,763,179‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Floating-Rate
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Variable
Rate
Senior
Loan
Interests  (89.5%)
(cont’d)
Herens
Holdco
SARL,
USD
Facility
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
3.93%,
9.33%,
7/03/28(b)
$
199,500‌
$
188,091‌
INEOS
US
Finance
LLC,
2027-II
Dollar
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.18%,
11/08/27(b)
2,693,199‌
2,703,018‌
Momentive
Performance
Materials,
Inc.,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
4.50%,
9.83%,
3/29/28(b)
398,992‌
393,631‌
Olympus
Water
U.S.
Holding
Corp.,
Initial
Dollar
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
3.75%,
9.32%,
11/09/28(b)
1,246,811‌
1,248,759‌
PMHC
II,
Inc.,
Initial
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
4.25%,
9.72%,
4/23/29(b)
1,695,696‌
1,680,571‌
Rohm
Holding
GmbH,
USD
Term
Loan,
B,
CME
Term
SOFR
6
Month
+
5.00%,
10.58%,
7/31/26(b)
1,695,561‌
1,643,104‌
W.
R.
Grace
Holdings
LLC,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
3.75%,
9.32%,
9/22/28(b)
4,987,245‌
5,005,428‌
18,625,781
Commercial
Services
&
Supplies
(8.0%)
Allied
Universal
Holdco
LLC,
Initial
U.S.
Dollar
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.18%,
5/12/28(b)
2,992,327‌
2,992,121‌
Api
Group
DE,
Inc.,
Repriced
2021
Incremental
Term
Lona,
CME
Term
SOFR
1
Month
+
2.50%,
7.94%,
1/03/29(b)
6,000,000‌
6,013,752‌
Bach
Finance
Ltd.,
Existing
Dollar
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.34%,
1/31/28(b)
5,000,000‌
5,015,625‌
Camelot
U.S.
Acquisition
LLC,
Amendment
No.
6
Refinancing
Term
Loan,
CME
Term
SOFR
1
Month
+
2.75%,
8.08%,
1/31/31(b)
5,000,000‌
5,003,645‌
CCI
Buyer,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.30%,
12/17/27(b)
1,699,486‌
1,691,595‌
Ensemble
RCM
LLC,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
3.00%,
8.32%,
8/01/29(b)
5,775,000‌
5,796,396‌
Face
Amount
Value
Envalior
Finance
GmbH,
USD
Term
Loan,
B1,
CME
Term
SOFR
3
Month
+
5.50%,
10.81%,
3/29/30(b)
$
199,500‌
$
185,286‌
Homeserve
USA
Holding
Corp.,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.00%,
8.33%,
10/21/30(b)
5,775,000‌
5,795,755‌
Indicor
LLC,
First
Lien,
Dollar
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
4.00%,
9.30%,
11/22/29(b)
3,500,000‌
3,522,502‌
JFL-Tiger
Acquisition
Co.,
Inc.,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
5.00%,
10.32%,
10/17/30(b)
1,496,250‌
1,502,094‌
Madison
IAQ
LLC,
Term
Loan,
ICE
LIBOR
USD
1
Month
+
3.25%,
8.69%,
6/21/28(b)
2,992,308‌
2,991,117‌
Neptune
BidCo
US,
Inc.,
First
Lien,
Dollar
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
5.00%,
10.42%,
4/11/29(b)
1,700,000‌
1,572,500‌
Spin
Holdco,
Inc.,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.59%,
3/04/28(b)
1,398,972‌
1,299,295‌
TruGreen
LP,
First
Lien,
Second
Refinancing
Term
Loan,
CME
Term
SOFR
1
Month
+
4.00%,
9.43%,
11/02/27(b)
149,613‌
145,920‌
WestJet
Loyalty
LP,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.07%,
2/14/31(b)
2,500,000‌
2,503,385‌
46,030,988
Communications
Equipment
(0.9%)
Delta
Topco,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
6
Month
+
3.75%,
9.12%,
12/01/27(b)
5,000,000‌
5,011,560‌
Construction
&
Engineering
(1.7%)
Apple
Bidco
LLC,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
2.75%,
8.19%,
9/22/28(b)
4,289,031‌
4,289,700‌
Brown
Group
Holding
LLC,
Incremental
Term
Loan,
B2,
CME
Term
SOFR
1
Month
+
3.00%,
8.33%,
7/02/29(b)
5,000,000‌
5,006,250‌
9,295,950
Consumer
Finance
(1.7%)
GTCR
W
Merger
Sub
LLC,
USD
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
3.00%,
8.31%,
1/31/31(b)
5,000,000‌
5,021,485‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Floating-Rate
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Variable
Rate
Senior
Loan
Interests  (89.5%)
(cont’d)
Sabre
GLBL,
Inc.,
2022
Term
Loan,
B2,
CME
Term
SOFR
1
Month
+
5.00%,
10.43%,
6/30/28(b)
$
1,250,000‌
$
1,089,584‌
Trans
Union
LLC,
2024
Refinancing
Term
Loan,
B7,
CME
Term
SOFR
1
Month
+
2.00%,
7.33%,
12/01/28(b)
3,500,000‌
3,501,684‌
9,612,753
Consumer
Staples
Distribution
&
Retail
(0.3%)
Heritage
Grocers
Group
LLC,
First
Lien,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
6.75%,
12.16%,
8/01/29(b)
1,695,696‌
1,702,762‌
Containers
&
Packaging
(1.0%)
Charter
Next
Generation,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.50%,
8.83%,
12/01/27(b)
2,500,000‌
2,507,388‌
Clydesdale
Acquisition
Holdings,
Inc.,
First
Lien,
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
3.68%,
9.11%,
4/13/29(b)
3,491,117‌
3,499,691‌
6,007,079
Distributors
(0.0%)(c)
Gloves
Buyer,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
4.00%,
9.44%,
12/29/27(b)
250,000‌
250,000‌
Windsor
Holdings
III
LLC,
2024
Dollar
Refinancing
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
4.00%,
9.33%,
8/01/30(b)
199,500‌
200,747‌
450,747
Diversified
Consumer
Services
(1.5%)
Ascend
Learning
LLC,
First
Lien,
2021
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.50%,
8.93%,
12/11/28(b)
1,700,000‌
1,693,169‌
Belron
Finance
U.S.
LLC,
2028
Dollar
Incremental
Term
Loan,
CME
Term
SOFR
3
Month
+
2.00%,
7.58%,
4/13/28(b)
750,000‌
751,562‌
KUEHG
Corp.,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
5.00%,
10.35%,
6/12/30(b)
1,700,000‌
1,707,286‌
Sedgwick
Claims
Management
Services,
Inc.,
2023
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.08%,
2/24/28(b)
2,149,370‌
2,155,414‌
Face
Amount
Value
Wand
NewCo
3,
Inc.,
First
Lien,
2024
Refinancing
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.08%,
1/30/31(b)
$
2,500,000‌
$
2,509,895‌
8,817,326
Electronic
Equipment,
Instruments
&
Components
(1.1%)
Ingram
Micro,
Inc.,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
3.00%,
8.57%,
6/30/28(b)
5,000,000‌
5,015,625‌
VeriFone
Systems,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.59%,
8/20/25(b)
1,200,000‌
1,067,000‌
6,082,625
Entertainment
(1.0%)
Formula
One
Management
Ltd.,
First
Lien,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
2.25%,
7.56%,
1/15/30(b)
800,000‌
801,800‌
Playtika
Holding
Corp.,
Term
Loan,
B1,
CME
Term
SOFR
1
Month
+
2.75%,
8.19%,
3/13/28(b)
5,000,000‌
5,011,365‌
5,813,165
Financial
Services
(1.6%)
HighTower
Holdings
LLC,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.59%,
4/21/28(b)
4,987,212‌
5,002,024‌
Mariner
Wealth
Advisors
LLC,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.25%,
8.69%,
8/18/28(b)
2,500,000‌
2,493,750‌
Osaic
Holdings,
Inc.,
Term
Loan,
B2,
CME
Term
SOFR
1
Month
+
4.50%,
9.83%,
8/17/28(b)
1,695,750‌
1,701,580‌
9,197,354
Food
Products
(0.1%)
Froneri
International
Ltd.,
First
Lien,
Facility
Term
Loan,
B2,
CME
Term
SOFR
1
Month
+
2.25%,
7.68%,
1/29/27(b)
748,057‌
749,334‌
Ground
Transportation
(2.0%)
Hertz
Corp.
(The),
Initial
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
3.25%,
8.69%,
6/30/28(b)
2,591,190‌
2,513,185‌
Initial
Term
Loan,
C,
CME
Term
SOFR
1
Month
+
3.25%,
8.69%,
6/30/28(b)
502,149‌
487,084‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Floating-Rate
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Variable
Rate
Senior
Loan
Interests  (89.5%)
(cont’d)
Uber
Technologies,
Inc.,
2023
Refinancing
Term
Loan,
CME
Term
SOFR
3
Month
+
2.75%,
8.08%,
3/03/30(b)
$
8,050,000‌
$
8,094,726‌
11,094,995
Health
Care
Equipment
&
Supplies
(0.8%)
Medline
Borrower
LP,
Initial
Dollar
Term
Loan,
CME
Term
SOFR
1
Month
+
3.00%,
8.44%,
10/23/28(b)
4,212,002‌
4,218,695‌
Health
Care
Providers
&
Services
(1.8%)
Medical
Solutions
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.25%,
8.68%,
11/01/28(b)
1,200,000‌
1,067,400‌
National
Mentor
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
3.75%,
9.16%,
3/02/28(b)
2,288,527‌
2,155,982‌
First
Lien,
Initial
Term
Loan,
C,
CME
Term
SOFR
3
Month
+
3.75%,
9.16%,
3/02/28(b)
5,575‌
5,252‌
Pacific
Dental
Services
LLC,
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
3.25%,
8.58%,
3/07/31(b)
2,500,000‌
2,500,000‌
Waystar
Technologies,
Inc.,
First
Lien,
2024
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
4.00%,
9.33%,
10/22/29(b)
4,300,000‌
4,314,783‌
10,043,417
Health
Care
Technology
(1.2%)
athenahealth
Group,
Inc.,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.25%,
8.58%,
2/15/29(b)
3,989,848‌
3,958,815‌
Cotiviti
Holdings,
Inc.,
Term
Loan,
TBD,
2/24/31(b)
2,900,000‌
2,904,834‌
6,863,649
Hotels,
Restaurants
&
Leisure
(6.8%)
1011778
B.C.
Unlimited
Liability
Co.,
Term
Loan,
B5,
CME
Term
SOFR
1
Month
+
2.25%,
7.58%,
9/20/30(b)
7,980,000‌
7,983,990‌
Carnival
Corp.,
2021
Incremental
Advance
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
3.25%,
8.69%,
10/18/28(b)
3,391,327‌
3,398,391‌
ClubCorp
Holdings,
Inc.,
First
Lien,
Term
Loan,
B2,
CME
Term
SOFR
3
Month
+
5.00%,
10.61%,
9/18/26(b)
3,394,648‌
3,404,832‌
Face
Amount
Value
Fertitta
Entertainment
LLC,
Initial
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
3.75%,
9.08%,
1/27/29(b)
$
3,398,982‌
$
3,406,827‌
Light
&
Wonder
International,
Inc.,
Term
Loan,
B1,
CME
Term
SOFR
1
Month
+
2.75%,
8.08%,
4/14/29(b)
5,800,000‌
5,819,030‌
Ontario
Gaming
GTA
LP,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
4.25%,
9.56%,
8/01/30(b)
1,699,500‌
1,707,542‌
Playa
Resorts
Holding
BV,
2022
Term
Loan,
CME
Term
SOFR
1
Month
+
3.25%,
8.58%,
1/05/29(b)
5,786,364‌
5,810,059‌
Raptor
Acquisition
Corp.,
First
Lien,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
4.00%,
9.59%,
11/01/26(b)
2,500,000‌
2,506,250‌
Scientific
Games
Holdings
LP,
First
Lien,
Initial
Dollar
Term
Loan,
CME
Term
SOFR
3
Month
+
3.25%,
8.58%,
4/04/29(b)
4,987,342‌
4,992,683‌
39,029,604
Household
Durables
(1.0%)
Hunter
Douglas
Holding
BV,
Term
Loan,
B1,
CME
Term
SOFR
3
Month
+
3.50%,
8.82%,
2/26/29(b)
2,000,000‌
1,980,468‌
Mattress
Firm,
Inc.,
2021
Term
Loan,
CME
Term
SOFR
3
Month
+
4.25%,
9.81%,
9/25/28(b)
3,398,938‌
3,408,710‌
5,389,178
Household
Products
(0.8%)
Kronos
Acquisition
Holdings,
Inc.,
Term
Loan,
B1,
CME
Term
SOFR
3
Month
+
3.75%,
9.31%,
12/22/26(b)
4,298,711‌
4,308,117‌
Insurance
(4.5%)
Alliant
Holdings
Intermediate
LLC,
New
Term
Loan,
B6,
CME
Term
SOFR
1
Month
+
3.50%,
8.83%,
11/06/30(b)
3,000,000‌
3,015,342‌
AssuredPartners
,
Inc.,
2020
February
Refinancing
Term
Loan,
CME
Term
SOFR
1
Month
+
3.50%,
8.94%,
2/12/27(b)
4,298,698‌
4,308,293‌
Asurion
LLC,
New
Term
Loan,
B11,
CME
Term
SOFR
1
Month
+
4.25%,
9.68%,
8/19/28(b)
3,398,992‌
3,289,586‌
Second
Lien,
New
Term
Loan,
B4,
CME
Term
SOFR
1
Month
+
5.25%,
10.69%,
1/20/29(b)
1,700,000‌
1,528,938‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Floating-Rate
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Variable
Rate
Senior
Loan
Interests  (89.5%)
(cont’d)
HUB
International
Ltd.,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
3.25%,
8.57%,
6/20/30(b)
$
6,007,140‌
$
6,014,378‌
USI,
Inc.,
2023
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
3.00%,
8.30%,
11/22/29(b)
6,982,456‌
6,994,459‌
25,150,996
IT
Services
(1.2%)
Gainwell
Acquisition
Corp.,
First
Lien,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
4.00%,
9.41%,
10/01/27(b)
199,485‌
191,287‌
Sitel
Worldwide
Corp.,
Initial
Dollar
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.19%,
8/28/28(b)
398,977‌
344,082‌
Tempo
Acquisition
LLC,
Additional
Fifth
Incremental
Term
Loan,
CME
Term
SOFR
1
Month
+
2.75%,
8.08%,
8/31/28(b)
5,984,925‌
6,011,109‌
6,546,478
Leisure
Products
(1.9%)
Majordrive
Holdings
IV
LLC,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.57%,
6/01/28(b)
3,391,282‌
3,401,174‌
Recess
Holdings,
Inc.,
First
Lien,
Amendment
No.
3
Term
Loan,
CME
Term
SOFR
3
Month
+
4.50%,
9.84%,
2/20/30(b)
2,150,000‌
2,160,750‌
Seaworld
Parks
&
Entertainment,
Inc.,
Term
Loan,
B2,
CME
Term
SOFR
1
Month
+
2.50%,
7.83%,
8/25/28(b)
5,087,250‌
5,092,337‌
10,654,261
Life
Sciences
Tools
&
Services
(1.4%)
Curia
Global,
Inc.,
First
Lien,
2021
Term
Loan,
CME
Term
SOFR
3
Month
+
3.75%,
9.16%,
8/30/26(b)
200,000‌
190,750‌
ICON
Lux
SARL,
Term
Loan,
TBD,
1/01/38(b)
5,603,808‌
5,628,913‌
ICON
plc,
Term
Loan,
ICE
LIBOR
USD
1
Month
+
2.25%,
TBD,
7/03/28(b)
600,408‌
602,134‌
U.S.
Term
Loan,
CME
Term
SOFR
3
Month
+
2.25%,
TBD,
7/03/28(b)
149,592‌
150,022‌
Face
Amount
Value
Icon
Public
Ltd.
Co.,
Repriced
U.S.
Term
Loan,
CME
Term
SOFR
3
Month
+
2.00%,
7.30%,
7/03/28(b)
$
1,396,192‌
$
1,398,817‌
7,970,636
Machinery
(3.8%)
Apex
Tool
Group
LLC,
Term
Loan,
A,
10.57%,
2/08/29(b)
36,000‌
35,550‌
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
10.00%,
15.33%,
2/08/30(b)
84,000‌
81,480‌
CPM
Holdings,
Inc.,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
4.50%,
9.83%,
9/28/28(b)
2,493,750‌
2,500,762‌
Crosby
U.S.
Acquisition
Corp.,
Amendment
No.
3
Replacement
Term
Loan,
CME
Term
SOFR
1
Month
+
4.00%,
9.33%,
8/16/29(b)
1,500,000‌
1,510,044‌
Engineered
Machinery
Holdings,
Inc.,
First
Lien,
Incremental
Amendment
No.
5
Term
Loan,
CME
Term
SOFR
3
Month
+
3.75%,
9.32%,
5/19/28(b)
2,992,347‌
2,985,100‌
Second
Lien,
Incremental
Amendment
No.
3
Term
Loan,
CME
Term
SOFR
3
Month
+
6.00%,
11.57%,
5/21/29(b)
1,000,000‌
990,833‌
Filtration
Group
Corp.,
2023
Extended
Dollar
Term
Loan,
CME
Term
SOFR
1
Month
+
4.25%,
9.69%,
10/21/28(b)
5,386,398‌
5,413,809‌
SPX
Flow,
Inc.,
Term
Loan,
CME
Term
SOFR
1
Month
+
4.50%,
9.93%,
4/05/29(b)
1,700,000‌
1,709,138‌
TK
Elevator
Midco
GmbH,
USD
Term
Loan,
B2,
TBD,
4/30/30(b)
5,750,000‌
5,774,558‌
USD
Term
Loan,
B1,
CME
Term
SOFR
6
Month
+
3.50%,
9.08%,
7/30/27(b)
500,000‌
501,222‌
21,502,496
Metals
&
Mining
(0.6%)
Arsenal
AIC
Parent
LLC,
2024
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
3.75%,
9.08%,
8/18/30(b)
3,391,500‌
3,409,163‌
Oil,
Gas
&
Consumable
Fuels
(3.0%)
CQP
HoldCo
LP,
Amendment
No.
4
Refinancing
Term
Loan,
CME
Term
SOFR
3
Month
+
3.00%,
8.30%,
12/31/30(b)
6,583,500‌
6,610,933‌
Discovery
Energy
Corp.,
USD
Term
Loan,
TBD,
1/30/31(b)
2,500,000‌
2,500,000‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Floating-Rate
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Variable
Rate
Senior
Loan
Interests  (89.5%)
(cont’d)
Freeport
LNG
Investments
LLLP,
Initial
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
3.50%,
9.08%,
12/21/28(b)
$
2,150,000‌
$
2,138,310‌
GIP
Pilot
Acquisition
Partners
LP,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
3.00%,
8.33%,
10/04/30(b)
5,760,563‌
5,783,363‌
17,032,606
Passenger
Airlines
(1.8%)
AAdvantage
Loyalty
IP
Ltd.
(American
Airlines,
Inc.),
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.75%,
10.33%,
4/20/28(b)
5,100,000‌
5,306,790‌
Mileage
Plus
Holdings
LLC,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
5.25%,
10.73%,
6/21/27(b)
5,000,000‌
5,155,400‌
10,462,190
Personal
Care
Products
(0.3%)
Conair
Holdings
LLC,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.19%,
5/17/28(b)
1,700,000‌
1,688,950‌
Journey
Personal
Care
Corp.,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
4.25%,
9.69%,
3/01/28(b)
199,487‌
196,994‌
1,885,944
Pharmaceuticals
(0.9%)
Packaging
Coordinators
Midco,
Inc.,
First
Lien,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
3.50%,
9.07%,
11/30/27(b)
4,987,147‌
5,003,425‌
Professional
Services
(1.5%)
CoreLogic,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.50%,
8.94%,
6/02/28(b)
1,695,652‌
1,662,268‌
EAB
Global,
Inc.,
First
Lien,
Term
Loan,
CME
Term
SOFR
1
Month
+
3.50%,
8.94%,
8/16/28(b)
4,987,245‌
4,998,157‌
Employbridge
Holding
Co.,
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
4.75%,
10.34%,
7/19/28(b)
1,695,652‌
1,422,581‌
8,083,006
Real
Estate
Management
&
Development
(0.0%)(c)
Cushman
&
Wakefield
US
Borrower
LLC,
2023-1
Refinancing
Term
Loan,
CME
Term
SOFR
1
Month
+
3.25%,
8.68%,
1/31/30(b)
199,497‌
199,248‌
Face
Amount
Value
Software
(16.3%)
Applied
Systems,
Inc.,
First
Lien,
2024
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
3.50%,
8.81%,
2/24/31(b)
$
5,000,000‌
$
5,035,940‌
Boxer
Parent
Co.,
Inc.,
2028
Extended
Dollar
Term
Loan,
CME
Term
SOFR
1
Month
+
4.25%,
9.58%,
12/29/28(b)
4,289,250‌
4,320,081‌
Central
Parent
LLC,
First
Lien,
2023
Refinancing
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.31%,
7/06/29(b)
5,775,000‌
5,798,204‌
CentralSquare
Technologies
LLC,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.18%,
8/29/25(b)
149,605‌
145,865‌
Cloud
Software
Group,
Inc.,
First
Lien,
Dollar
Term
Loan,
B,
CME
Term
SOFR
3
Month
+
4.50%,
9.91%,
3/30/29(b)
4,898,988‌
4,880,382‌
Cloudera,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.18%,
10/08/28(b)
3,400,000‌
3,389,905‌
E2open
LLC,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.50%,
8.94%,
2/04/28(b)
773,015‌
775,431‌
ECI
Macola/MAX
Holding
LLC,
Term
Loan,
TBD,
5/31/30(b)
5,000,000‌
5,022,000‌
Ellucian
Holdings,
Inc.,
First
Lien,
Term
Loan,
B1,
CME
Term
SOFR
1
Month
+
3.50%,
8.93%,
10/09/29(b)
5,000,000‌
5,027,085‌
EP
Purchaser
LLC,
First
Lien,
Closing
Date
Term
Loan,
CME
Term
SOFR
3
Month
+
3.50%,
9.07%,
11/06/28(b)
2,144,529‌
2,131,930‌
Epicor
Software
Corp.,
Term
Loan,
C,
CME
Term
SOFR
1
Month
+
3.25%,
8.69%,
7/30/27(b)
4,987,080‌
5,010,305‌
Informatica
LLC,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
2.75%,
8.19%,
10/27/28(b)
4,987,277‌
4,997,252‌
Ivanti
Software,
Inc.,
First
Lien,
2021
Specified
Refinancing
Term
Loan,
CME
Term
SOFR
3
Month
+
4.25%,
9.84%,
12/01/27(b)
1,249,618‌
1,169,434‌
Marcel
Bidco
LLC,
Term
Loan,
B3,
CME
Term
SOFR
1
Month
+
4.50%,
9.81%,
11/11/30(b)
5,500,000‌
5,549,841‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Floating-Rate
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Variable
Rate
Senior
Loan
Interests  (89.5%)
(cont’d)
McAfee
Corp.,
Term
Loan,
B1,
CME
Term
SOFR
1
Month
+
3.75%,
9.18%,
3/01/29(b)
$
5,098,477‌
$
5,104,055‌
Oceankey
U.S.
II
Corp.,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.50%,
8.93%,
12/15/28(b)
2,493,639‌
2,470,573‌
Open
Text
Corp.,
2023
Replacement
Term
Loan,
CME
Term
SOFR
1
Month
+
2.75%,
8.18%,
1/31/30(b)
998,642‌
1,000,983‌
Polaris
Newco
LLC,
First
Lien,
Dollar
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.57%,
6/02/28(b)
2,493,606‌
2,472,233‌
Precisely
Software,
Inc.,
First
Lien,
Third
Amendment
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.59%,
4/24/28(b)
4,400,000‌
4,406,186‌
Project
Alpha
Intermediate
Holding,
Inc.,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.75%,
10.06%,
10/28/30(b)
2,750,000‌
2,767,570‌
Proofpoint,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.25%,
8.69%,
8/31/28(b)
3,272,876‌
3,277,376‌
Quartz
AcquireCo
LLC,
Term
Loan,
CME
Term
SOFR
3
Month
+
3.50%,
8.81%,
6/28/30(b)
4,987,469‌
5,010,850‌
Quest
Software
US
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.25%,
9.71%,
2/01/29(b)
200,000‌
151,333‌
Renaissance
Holding
Corp.,
First
Lien,
2024
Term
Loan,
CME
Term
SOFR
1
Month
+
4.25%,
9.58%,
4/05/30(b)
2,144,625‌
2,151,327‌
Symplr
Software,
Inc.,
First
Lien,
Initial
Term
Loan,
CME
Term
SOFR
3
Month
+
4.50%,
9.91%,
12/22/27(b)
1,695,630‌
1,599,827‌
UKG,
Inc.,
First
Lien,
2024
Refinancing
Term
Loan,
CME
Term
SOFR
3
Month
+
3.50%,
8.81%,
2/10/31(b)
8,000,000‌
8,044,792‌
Veritas
U.S.,
Inc.,
2021
Dollar
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
5.00%,
10.44%,
9/01/25(b)
199,485‌
185,069‌
91,895,829
Face
Amount
Value
Specialty
Retail
(3.3%)
Great
Outdoors
Group
LLC,
Term
Loan,
B2,
CME
Term
SOFR
1
Month
+
3.75%,
9.19%,
3/06/28(b)
$
2,393,862‌
$
2,398,350‌
Harbor
Freight
Tools
USA,
Inc.,
2021
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
2.75%,
8.19%,
10/19/27(b)
1,700,000‌
1,701,018‌
LS
Group
Opco
Acquisition
LLC,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.25%,
8.68%,
11/02/27(b)
5,000,000‌
5,013,280‌
PetSmart
LLC,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.18%,
2/11/28(b)
200,000‌
199,714‌
RealTruck
Group,
Inc.,
Initial
Term
Loan,
CME
Term
SOFR
1
Month
+
3.50%,
8.94%,
1/31/28(b)
2,144,473‌
2,127,720‌
SRS
Distribution,
Inc.,
2022
Refinancing
Term
Loan,
CME
Term
SOFR
1
Month
+
3.25%,
8.68%,
6/02/28(b)
5,000,000‌
5,033,205‌
White
Cap
Supply
Holdings
LLC,
Initial
Closing
Date
Term
Loan,
CME
Term
SOFR
1
Month
+
3.75%,
9.08%,
10/19/27(b)
2,500,000‌
2,510,288‌
18,983,575
Textiles,
Apparel
&
Luxury
Goods
(0.0%)(c)
Hanesbrands,
Inc.,
Initial
Term
Loan,
B,
CME
Term
SOFR
1
Month
+
3.75%,
9.08%,
3/08/30(b)
199,496‌
199,683‌
Trading
Companies
&
Distributors
(0.3%)
Foundation
Building
Materials,
Inc.,
2024
Incremental
Term
Loan,
CME
Term
SOFR
3
Month
+
4.00%,
9.31%,
1/29/31(b)
1,500,000‌
1,507,968‌
506,494,529
Total
Fixed
Income
Securities
(Cost
$562,705,657)
563,088,383
Shares
Short-Term
Investments
(84.0%)
Investment
Company
(
84.0%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(See
Note
G)
(Cost
$475,177,608)
475,177,608
475,177,608
Total
Investments
(183.5%)
(Cost
$1,037,883,265)
(d)
1,038,265,991
Liabilities
in
Excess
of
Other
Assets
(-83.5%)
(472,545,557)
Net
Assets
(100.0%)
$565,720,434
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Floating-Rate
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
(a)
144A
security
Certain
conditions
for
public
sale
may
exist.
Unless
otherwise
noted,
these
securities
are
deemed
to
be
liquid.
(b)
Floating
or
variable
rate
securities:
The
rates
disclosed
are
as
of
March
31,
2024.
For
securities
based
on
a
published
reference
rate
and
spread,
the
reference
rate
and
spread
are
indicated
in
the
description
in
the
Portfolio
of
Investments.
Certain
variable
rate
securities
may
not
be
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.
These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description
in
the
Portfolio
of
Investments.
(c)
Amount
is
less
than
0.05%.
(d)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$1,037,883,265.
The
aggregate
gross
unrealized
appreciation
is
$562,585
and
the
aggregate
gross
unrealized
depreciation
is
$179,859,
resulting
in
net
unrealized
appreciation
of
$382,726.
CME
Chicago
Mercantile
Exchange
CLO
Collateralized
Loan
Obligation
ICE
Intercontinental
Exchange
LIBOR
London
Interbank
Offered
Rate
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
TBD
To
Be
Determined
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Variable
Rate
Senior
Loan
Interests
48.8‌
%
Short-Term
Investment
45.8‌
Other*
5.4‌
Total
Investments
100.0‌%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Floating-Rate
ETF
14
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$562,705,657)
$
563,088,383
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$475,177,608)
475,177,608
Total
Investments
in
Securities,
at
Value
(Cost
$1,037,883,265)
1,038,265,991
Receivable
for
Investments
Sold
385
Interest
Receivable
1,115,994
Dividends
Receivable
355,335
Total
Assets
1,039,737,705
Liabilities:
Payable
for
Investments
Purchased
473,522,318
Payable
for
Management
Fee
68,835
Payable
to
Bank
426,118
Total
Liabilities
474,017,271
Net
Assets
$
565,720,434
Net
Assets
Consist
of:
Paid-in-Capital
$
564,591,072
Total
Distributable
Earnings
1,129,362
Net
Assets
$
565,720,434
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
11,200,000
Net
Asset
Value
Per
Share
$
50
.51
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Floating-Rate
ETF
15
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Period
from
February
6,
2024
^
to
March
31,
2024
Investment
Income:
Interest
from
Securities
of
Unaffiliated
Issuers
(Net
of
$1,980
of
Foreign
Taxes
Withheld)
$
422,206
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
427,980
Total
Investment
Income
850,186
Expenses:
Management
Fee
(Note
B)
84,997
Total
Expenses
84,997
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(4,799)
Net
Expenses
80,198
Net
Investment
Income
769,988
Realized
Gain
(Loss):
Investments
Sold
(23,352)
Net
Realized
Loss
(23,352)
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
382,726
Net
Change
in
Unrealized
Appreciation
(Depreciation)
382,726
Net
Realized
Loss
and
Change
in
Unrealized
Appreciation
(Depreciation)
359,374
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
1,129,362
^
Commencement
of
operations.
Semi-Annual
Report
March
31,
2024
Eaton
Vance
Floating-Rate
ETF
16
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Changes
in
Net
Assets
Period
from
February
6,
2024
^
to
March
31,
2024
(unaudited)
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
769,988
Net
Realized
Loss
(
23,352
)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
382,726
Net
Increase
in
Net
Assets
Resulting
from
Operations
1,129,362
Capital
Share
Transactions:
Subscribed
20,007,240
Subscribed
In-Kind
544,583,832
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
564,591,072
Total
Increase
in
Net
Assets
565,720,434
Net
Assets:
Beginning
of
Period
End
of
Period
$
565,720,434
Capital
Share
Transactions:
Beginning
of
Period
Shares
Subscribed
400,000
Shares
Subscribed
In-Kind
10,800,000
Shares
Outstanding,
End
of
Period
Net
Increase
in
11,200,000
^
Commencement
of
Operations
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Eaton
Vance
Floating-Rate
ETF
17
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Period
from
February
6,
2024
(1)
to
March
31,
2024
(unaudited)
Net
Asset
Value,
Beginning
of
Period
$50.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
0.41‌
Net
Realized
and
Unrealized
Gain
0.10‌
Total
from
Investment
Operations
0.51‌
Net
Asset
Value,
End
of
Period
$50.51‌
Total
Return
(3)
0.98‌%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$565,720
Net
Assets,
End
of
Period
(Thousands)
$565,720‌
Ratio
of
Expenses
0.57‌%
(5)(6)
Ratio
of
Net
Investment
Income
5.41‌%
(5)(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0.03‌%
(5)
Portfolio
Turnover
Rate
1‌%
(4)(7)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(7)
In-kind
transactions
are
not
included
in
portfolio
turnover
calculations.
18
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
“Trust”)
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to
establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Act”).
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Eaton
Vance
Floating-Rate
ETF (the
"Fund"),
which seeks
to
provide
a
high
level
of
current
income.
The
Fund
is
diversified. 
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteris-
tics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers/dealers
may
also
be
utilized.
In
these
circum-
stances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable
brokers/dealers;
(2)
when
market
quotations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circum-
stances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
secu-
rity’s
market
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees;
(3)loans
are
valued
using
a
price
provided
by
an
approved
valuation
vendor
and
if
a
valuation
is
not
available
from
ant
of
the
approved
valuation
vendor,
then
a
quote
from
the broker/dealer
will
be
used; and
(4)
in-
vestments
in
mutual
funds,
including
the
Morgan
Stanley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Senior
Loans:
 Senior
Loans
are
typically
structured
by
a
syndicate
of
lenders
(“Lenders”),
one
or
more
of
which
administers
the
Senior
Loan
on
behalf
of
the
Lenders
(“Agent”).
Lenders
may
sell
interests
in
Senior
Loans
to
third
parties
(“Participations”)
or
may
assign
all
or
a
portion
of
their
interest
in
a
Senior
Loan
to
third
parties
(“Assignments”).
Senior
Loans
are
exempt
from
registra-
tion
under
the
Securities
Act
of
1933.
Presently,
Senior
Loans
are
not
readily
marketable
and
are
often
subject
to
restrictions
on
resale.
4.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
5.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
monthly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
6.
Security
Transactions
and Income:
 Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
income
at
fair
value.
Interest
income
is
recog-
nized
on
the
accrual
basis
(except
where
collection
is
in
doubt)
net
of
applicable
withholding
taxes.
Discounts
are
accreted
and
premiums
are
amortized
over
the
life
of
the
respective
securities.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.60% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:
Fixed
Income
Securities
Asset-Backed
Securities
$
$
6,758
$
$
6,758
Corporate
Bonds
49,836
49,836
Variable
Rate
Senior
Loan
Interests
506,494
506,494
Total
Fixed
Income
Securities
563,088
563,088
Short-Term
Investments
Investment
Company
475,178
475,178
Total
Assets
$475,178
$563,088
$—
$1,038,266
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
20
Morgan
Stanley
ETF
Trust
expenses,
including
the
costs
of
proxies,
not
incurred
in
the
ordinary
course
of
the
Fund’s
business.
.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 20,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statement
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the
period ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-
term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $535,169,613
and
$1,221,373,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
for
the
period
ended
March
31,
2024. Purchase
and
Sales
related
to
In-Kind
transactions
were
$39,999,137 and
$0, respectively
for
period ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
invest-
ment
in
the
Liquidity
Fund.
For
the
period ended
March
31,
2024, management
fees
paid
were
reduced
by $4,799 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
21
Morgan
Stanley
ETF
Trust
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
period ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
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
Affiliated
Investment
Company
Value
February
6,
2024
*
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
$
522,195
$
47,017
$
428
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
475,178
*
Commencement
of
Operations.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
22
Morgan
Stanley
ETF
Trust
to
the
Fund,
such
as
during
periods
of
market
stress,
and
no
other
authorized
participant
creates
or
redeems,
shares
may
trade
at
a
discount
to
NAV
and
possibly
face
trading
halts
and/
or
delisting.
Cash
Transactions
Risk:
Unlike
certain
ETFs,
the
Fund
may
effect
creations
and
redemptions
in
cash
or
partially
in
cash.
Therefore,
it
may
be
required
to
sell
portfolio
securities
and
subsequently
recognize
gains
on
such
sales
that
the
Fund
might
not
have
recognized
if
it
were
to
distribute
portfolio
securities
in-kind.
As
such,
investments
in
shares
may
be
less
tax-efficient
than
an
investment
in
an
ETF
that
distributes
portfolio
securities
entirely
in-kind. 
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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.
Libor
Discontinuance
or
Unavailability
Risk:
The
Fund’s
investments,
payment
obligations
and
financing
terms
may
be
based
on
floating
rates,
such
as
the
London
Interbank
Offered
Rates
(collectively,
“LIBOR”),
Euro
Interbank
Offered
Rate,
Secured
Overnight
Financing
Rate
(“SOFR”)
and
other
similar
types
of
reference
rates
(each,
a
“Reference
Rate”).
These
Refer-
ence
Rates
are
generally
intended
to
represent
the
rate
at
which
contributing
banks
may
obtain
short-term
borrowings
from
each
other
within
certain
financial
markets.
London
Interbank
Offered
Rate
(“LIBOR”)
was
the
basic
rate
of
interest
used
in
lending
transactions
between
banks
on
the
London
interbank
market
and
has
been
widely
used
as
a
reference
for
setting
the
interest
rate
on
loans
globally.
As
a
result
of
benchmark
re-
forms,
publication
of
most
LIBOR
settings
has
ceased.
Various
financial
industry
groups
have
been
planning
for
the
transi-
tion
from
LIBOR
and
certain
regulators
and
industry
groups
have
taken
actions
to
establish
alternative
reference
rates
(e.g.,
the
SOFR,
which
measures
the
cost
of
overnight
borrowings
through
repurchase
agreement
transactions
collateralized
with
U.S.
Treasury
securities
and
is
intended
to
replace
U.S.
dollar
LIBORs
with
certain
adjustments).
These
developments
could
negatively
impact
financial
markets
in
general
and
present
heightened
risks,
including
with
respect
to
the
Fund’s
invest-
ments.
As
a
result
of
the
uncertainty
and
developments
relating
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
23
Morgan
Stanley
ETF
Trust
to
the
transition
process,
performance,
price
volatility,
liquidity
and
value
of
the
Fund
and
its
assets
may
be
adversely
affected.
24
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
Morgan
Stanley
ETF
Trust
The
Board
considered
the
following
factors
at
the
time
of
approval
of
the
contracts
which
occurred
prior
to
commencement
of
operations.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
the
nature
and
extent
of
the
investment
advisory
and
portfolio
management
services
to
be
pro-
vided
by
the
Adviser
under
the
investment
management
agreement
(the
“Management
Agreement”),
including
portfolio
manage-
ment,
investment
research
and
equity
and
fixed
income
securities
trading.
The
Board
also
reviewed
and
considered
the
nature
and
extent
of
the
non-advisory
services
to
be
provided
by
the
Adviser
under
the
Management
Agreement,
including
operations,
com-
pliance,
business
management
and
planning,
legal
services
and
the
provision
of
supplies,
office
space
and
utilities
at
the
Adviser’s
expense.
The
Board
also
considered
the
Adviser’s
investment
in
personnel
and
infrastructure
that
benefits
the
Fund.
The
Board
also
considered
that
the
Adviser
serves
a
variety
of
other
investment
advisory
clients
and
has
experience
overseeing
service
providers.
The
Board
reviewed
and
considered
the
qualifications
of
the
portfolio
managers
and
other
key
personnel
of
the
Adviser
who
will
provide
the
advisory
services
to
the
Fund.
The
Board
determined
that
the
Adviser's
portfolio
managers
and
key
personnel
are
well
qualified
by
education
and/or
training
and
experience
to
perform
the
services
in
an
efficient
and
professional
manner.
The
Board
concluded
that
the
nature
and
extent
of
the
advisory
services
to
be
provided
were
necessary
and
appropriate
for
the
conduct
of
the
business
and
investment
activities
of
the
Fund
and
supported
its
decision
to
approve
the
Management
Agreement.
Performance,
Fees
and
Expenses
of
the
Fund
The
Board
considered
that
the
Adviser
plans
to
arrange
for
a
public
offering
of
shares
of
the
Fund
to
raise
assets
for
investment
and
that
the
offering
had
not
yet
begun
and
concluded
that,
since
the
Fund
currently
had
no
assets
to
invest
(other
than
seed
capital
required
under
the
Investment
Company
Act)
and
had
no
track
record
of
performance,
this
was
not
a
factor
it
needed
to
address
at
the
present
time.
The
Board
reviewed
the
unitary
management
fee
(the
“management
fee
rate”)
proposed
to
be
paid
by
the
Fund
under
the
Manage-
ment
Agreement,
pursuant
to
which
the
Adviser
would
pay
substantially
all
of
the
operating
expenses
of
the
Fund,
subject
to
certain
exceptions.
The
Board
considered
the
benefits
of
a
unitary
fee
structure
and
considered
the
management
fee
rate
relative
to
compa-
rable
funds
advised
by
the
Adviser
or
its
affiliates,
when
applicable,
and
compared
to
peers
as
determined
by
the
Adviser.
The
Board
reviewed
the
anticipated
total
expense
ratio
of
the
Fund,
which,
due
to
the
unitary
management
fee
structure,
was
equal
to
the
proposed
management
fee
rate.
The
Board
also
considered
that
the
fees
charged
by
the
Fund’s
other
service
providers
would
be
paid
by
the
Adviser
under
the
unitary
management
fee
structure.
The
Board
considered
that
the
Fund
requires
the
Adviser
to
develop
processes,
invest
in
additional
resources
and
incur
additional
risks
to
successfully
manage
the
Fund
and
concluded
that
the
proposed
management
fee
rate
and
anticipated
total
expense
ratio
would
be
competitive
with
its
peer
group
averages.
Economies
of
Scale
The
Board
considered
the
growth
prospects
of
the
Fund
and
the
proposed
unitary
management
fee
schedule,
which
does
not
in-
clude
breakpoints.
The
Board
considered
that
the
unitary
management
fee
rate
was
set
at
a
level
to
anticipate
economies
of
scale
at
lower
asset
levels
before
economies
of
scale
are
achieved
(if
ever).
The
Board
also
considered
that
the
unitary
management
fee
struc-
ture
inherently
reflects
certain
economies
of
scale
because
the
management
fee
rate
is
fixed
at
a
competitive
level
over
the
contract
period
and
therefore
the
management
fee
rate
paid
by
the
Fund
will
not
increase
in
the
future
even
if
the
Fund’s
operating
costs
rise
and
assets
remain
flat
or
decrease.
The
Board
also
considered
that
increases
in
the
Fund’s
assets
would
not
lead
to
a
reduction
to
the
unitary
management
fee
rate
paid
by
the
Fund
in
the
future
even
if
economies
of
scale
were
achieved.
The
Board
considered
that
the
Fund’s
potential
growth
was
uncertain
and
concluded
that
it
would
be
premature
to
consider
economies
of
scale
as
a
factor
in
approving
the
Management
Agreement
at
the
present
time.
Profitability
of
the
Adviser
and
Affiliates
Since
the
Fund
had
not
begun
operations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
this
was
not
a
factor
that
needed
to
be
considered
at
the
present
time.
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
(cont’d)
25
Morgan
Stanley
ETF
Trust
Other
Benefits
of
the
Relationship
The
Board
considered
other
direct
and
indirect
benefits
to
the
Adviser
and/or
its
affiliates
to
be
derived
from
their
relationship
with
the
Fund
and
other
funds
advised
by
the
Adviser.
These
benefits
may
include,
among
other
things,
fees
for
trading,
distribution
and/or
shareholder
servicing
and
for
transaction
processing
and
reporting
platforms
used
by
securities
lending
agents,
and
research
received
by
the
Adviser
generated
from
commission
dollars
spent
on
funds’
portfolio
trading.
Since
the
Fund
had
not
begun
oper-
ations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
these
benefits
were
not
a
factor
that
needed
to
be
consid-
ered
at
the
present
time.
Resources
of
the
Adviser
and
Historical
Relationship
Between
the
Fund
and
the
Adviser
The
Board
considered
whether
the
Adviser
is
financially
sound
and
has
the
resources
necessary
to
perform
its
obligations
under
the
Management
Agreement.
The
Board
also
reviewed
and
considered
the
organizational
structure
of
the
Adviser,
the
policies
and
procedures
formulated
and
adopted
by
the
Adviser
for
managing
the
Fund’s
operations
and
the
Board’s
confidence
in
the
compe-
tence
and
integrity
of
the
senior
managers
and
key
personnel
of
the
Adviser.
The
Board
concluded
that
the
Adviser
has
the
financial
resources
necessary
to
fulfill
its
obligations
under
the
Management
Agreement
and
that
it
is
beneficial
for
the
Fund
to
enter
into
this
relationship
with
the
Adviser.
Other
Factors
and
Current
Trends
The
Board
considered
the
controls
and
procedures
adopted
and
implemented
by
the
Adviser
and
monitored
by
the
Fund’s
Chief
Compliance
Officer
and
concluded
that
the
conduct
of
business
by
the
Adviser
indicates
a
good
faith
effort
on
its
part
to
adhere
to
high
ethical
standards
in
the
conduct
of
the
Fund’s
business.
General
Conclusion
After
considering
and
weighing
all
of
the
above
factors,
with
various
written
materials
and
verbal
information
presented
by
the
Ad-
viser,
the
Board
concluded
that
it
would
be
in
the
best
interest
of
the
Fund
and
its
future
shareholders
to
approve
the
Management
Agreement,
which
will
remain
in
effect
for
two
years
and
thereafter
must
be
approved
annually
by
the
Board
of
the
Fund
if
it
is
to
continue
in
effect.
In
reaching
this
conclusion
the
Board
did
not
give
particular
weight
to
any
single
piece
of
information
or
factor
referenced
above.
It
is
possible
that
individual
Board
members
may
have
weighed
these
factors,
and
the
information
presented,
differently
in
reaching
their
individual
decisions
to
approve
the
Management
Agreement.
26
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program*
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
*
The
Fund
commenced
operations
subsequent
to
the
period
covered
by
the
report,
which
applied
to
other funds
of
the
Trust
during
that
period.
However,
during
the
period
ended
March
31,
2024,
the
Program
applied
to
the
Fund.
27
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
A
copy
of
the
Proxy
Policy,
as
well
as
the
Trust’s
most
recent
proxy
voting
record
for
the
12-month
period
ended
June
30,
as
filed
with
the
SEC,
are
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
is
also
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
28
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
29
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
30
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
31
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
.
EVETFLOATSAN
6598719
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Eaton
Vance
High
Yield
ETF
NYSE
Arca:
EVHY
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
11
Statement
of
Operations
....................................................................................
12
Statement
of
Changes
in
Net
Assets
........................................................................
13
Financial
Highlights
.........................................................................................
14
Notes
to
Financial
Statements
...............................................................................
15
Investment
Advisory
Agreement
Approval
....................................................................
20
Liquidity
Risk
Management
Program
.........................................................................
22
Important
Notices
..........................................................................................
23
U.S.
Customer
Privacy
Notice
...............................................................................
24
Trustees
and
Officers
Information
...........................................................................
27
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Eaton
Vance
High
Yield
ETF (the
“Fund”)
performed
during
the
period
beginning October
16,
2023
(when
the
Fund
commenced
operations)
and
ended
March
31,
2024.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Eaton
Vance
High
Yield
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include
man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
10/16/23-
3/31/24.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
I
will
get
Beginning
Account
Value
(10/16/23)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Eaton
Vance
High
Yield
ETF
^
$1,000.00
$1,088.50
$1,020.79
$2.25
$2.18
0.47%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
168/366
(to
reflect
the
actual
days
in
the
period).
**
Annualized.
^
The
Fund
commenced
operations
on
October
16,
2023.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Eaton
Vance
High
Yield
ETF
Morgan
Stanley
ETF
Trust
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Returns
for
periods
less
than
one
year
are
not
annualized.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Bloomberg
U.S.
Universal
Index
(1)
and
the
ICE
BofA
BB-B
U.S.
High
Yield
Index
(2)
Cumulative
Total
Return
for
the
Period
Ended
March
31,
2024
Since
Inception
(3)
Eaton
Vance
High
Yield
ETF
-
NAV
(4)
8.85%
Eaton
Vance
High
Yield
ETF
-
Market
Price
(4)
9.14%
Bloomberg
U.S.
Universal
Index
7.09%
ICE
BofA
BB-B
U.S.
High
Yield
Index
9.32%
(1)
The
Bloomberg
U.S.
Universal
Index
represents
the
union
of
the
US
Aggregate
Index,
US
Corporate
High
Yield
Index,
Investment
Grade
144A
Index,
Eurodollar
Index,
US
Emerging
Markets
Index,
and
the
non-Employee
Retirement
Income
Security
Act
of
1974
(non-ERISA)
eligible
portion
of
the
CMBS
Index.
The
index
covers
U.S.
dollar-denominated,
taxable
bonds
that
are
rated
either
investment
grade
or
high-yield.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
The
Fund’s
primary
benchmark
index
was
changed
from
the
ICE
BofA
BB-B
US
High
Yield
Index
to
the
Bloomberg
U.S.
Universal
Index
to
comply
with
the
regulation
that
requires
the
Fund’s
primary
benchmark
to
represent
the
overall
applicable
market.
(2)
The
ICE
BofA
BB-B
U.S.
High
Yield
Index
is
an
unmanaged
index
of
below
investment
grade
(BB-B)
U.S.
corporate
bonds.
ICE
®
BofA
®
indices
are
not
for
redistribution
or
other
uses;
provided
“as
is”,
without
warranties,
and
with
no
liability.
Eaton
Vance
has
prepared
this
report
and
ICE
Data
Indices,
LLC
does
not
endorse
it,
or
guarantee,
review,
or
endorse
Eaton
Vance’s
products.
BofA
®
is
a
licensed
registered
trademark
of
Bank
of
America
Corporation
in
the
United
States
and
other
countries.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
Historical
performance
of
the
index
illustrates
market
trends
and
does
not
represent
the
past
or
future
performance
of
the
Fund.
(3)
For
comparative
purposes,
cumulative
total
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(4)
Commenced
operations
on
October
16,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Eaton
Vance
High
Yield
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Fixed
Income
Securities
(95.7%)
Corporate
Bonds
(
95.7%
)
Aerospace
&
Defense
(2.8%)
Bombardier,
Inc.
7.25%,
7/1/31(a)
$
30,000‌
$
30,099‌
7.88%,
4/15/27(a)
109,000‌
109,144‌
8.75%,
11/15/30(a)
40,000‌
42,761‌
Moog,
Inc.
4.25%,
12/15/27(a)
111,000‌
104,800‌
TransDigm
,
Inc.
4.63%,
1/15/29
52,000‌
48,319‌
5.50%,
11/15/27
142,000‌
139,095‌
6.38%,
3/1/29(a)
25,000‌
25,109‌
6.63%,
3/1/32(a)
25,000‌
25,289‌
6.75%,
8/15/28(a)
68,000‌
68,982‌
593,598
Air
Freight
&
Logistics
(0.4%)
Cargo
Aircraft
Management,
Inc.
4.75%,
2/1/28(a)
96,000‌
86,894‌
Automobile
Components
(1.6%)
Clarios
Global
LP
6.75%,
5/15/25(a)
155,000‌
155,256‌
8.50%,
5/15/27(a)
100,000‌
100,339‌
Goodyear
Tire
&
Rubber
Co.
(The)
5.00%,
7/15/29
56,000‌
52,341‌
5.25%,
7/15/31
28,000‌
25,542‌
333,478
Automobiles
(1.7%)
Ford
Motor
Co.
3.25%,
2/12/32
216,000‌
179,792‌
6.10%,
8/19/32
175,000‌
177,441‌
357,233
Broadline
Retail
(0.6%)
Match
Group
Holdings
II
LLC
3.63%,
10/1/31(a)
139,000‌
118,242‌
Building
Products
(3.8%)
Builders
FirstSource
,
Inc.
4.25%,
2/1/32(a)
208,000‌
186,684‌
5.00%,
3/1/30(a)
51,000‌
48,703‌
CP
Atlas
Buyer,
Inc.
7.00%,
12/1/28(a)
21,000‌
19,736‌
EMRLD
Borrower
LP
6.63%,
12/15/30(a)
131,000‌
132,420‌
Masonite
International
Corp.
5.38%,
2/1/28(a)
69,000‌
69,144‌
Smyrna
Ready
Mix
Concrete
LLC
6.00%,
11/1/28(a)
117,000‌
114,494‌
Standard
Industries,
Inc.
4.38%,
7/15/30(a)
163,000‌
146,576‌
5.00%,
2/15/27(a)
25,000‌
24,271‌
Summit
Materials
LLC
7.25%,
1/15/31(a)
51,000‌
53,047‌
795,075
Face
Amount
Value
Capital
Markets
(2.7%)
AG
TTMT
Escrow
Issuer
LLC
8.63%,
9/30/27(a)
$
49,000‌
$
50,771‌
Compass
Group
Diversified
Holdings
LLC
5.25%,
4/15/29(a)
116,000‌
110,338‌
HAT
Holdings
I
LLC
3.38%,
6/15/26(a)
185,000‌
174,438‌
Jane
Street
Group
4.50%,
11/15/29(a)
131,000‌
121,316‌
MSCI,
Inc.
3.88%,
2/15/31(a)
128,000‌
114,252‌
571,115
Chemicals
(1.4%)
Avient
Corp.
7.13%,
8/1/30(a)
112,000‌
114,941‌
NOVA
Chemicals
Corp.
4.25%,
5/15/29(a)
80,000‌
68,587‌
WR
Grace
Holdings
LLC
4.88%,
6/15/27(a)
119,000‌
113,244‌
296,772
Commercial
Services
&
Supplies
(3.5%)
Allied
Universal
Holdco
LLC
6.63%,
7/15/26(a)
45,000‌
45,008‌
Clean
Harbors,
Inc.
4.88%,
7/15/27(a)
117,000‌
113,607‌
Covanta
Holding
Corp.
4.88%,
12/1/29(a)
103,000‌
92,422‌
GFL
Environmental,
Inc.
3.50%,
9/1/28(a)
112,000‌
102,718‌
4.25%,
6/1/25(a)
74,000‌
72,844‌
4.75%,
6/15/29(a)
138,000‌
129,925‌
Neptune
Bidco
US,
Inc.
9.29%,
4/15/29(a)
43,000‌
40,695‌
WASH
Multifamily
Acquisition,
Inc.
5.75%,
4/15/26(a)
138,000‌
134,997‌
732,216
Construction
&
Engineering
(0.2%)
Artera
Services
LLC
8.50%,
2/15/31(a)
50,000‌
51,299‌
Consumer
Finance
(1.4%)
Ford
Motor
Credit
Co.
LLC
4.13%,
8/17/27
220,000‌
208,883‌
Macquarie
Airfinance
Holdings
Ltd.
6.40%,
3/26/29(a)
15,000‌
15,248‌
6.50%,
3/26/31(a)
18,000‌
18,335‌
8.13%,
3/30/29(a)
59,000‌
62,449‌
304,915
Consumer
Staples
Distribution
&
Retail
(2.0%)
Albertsons
Cos.,
Inc.
4.88%,
2/15/30(a)
117,000‌
111,394‌
5.88%,
2/15/28(a)
47,000‌
46,564‌
7.50%,
3/15/26(a)
25,000‌
25,458‌
Performance
Food
Group,
Inc.
4.25%,
8/1/29(a)
155,000‌
142,195‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
High
Yield
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(95.7%)
(cont’d)
US
Foods,
Inc.
4.75%,
2/15/29(a)
$
103,000‌
$
97,897‌
423,508
Containers
&
Packaging
(1.4%)
Ball
Corp.
6.88%,
3/15/28
109,000‌
111,978‌
Berry
Global,
Inc.
5.63%,
7/15/27(a)
68,000‌
67,219‌
Owens-Brockway
Glass
Container,
Inc.
7.25%,
5/15/31(a)
111,000‌
113,193‌
292,390
Distributors
(1.2%)
Ritchie
Bros
Holdings,
Inc.
6.75%,
3/15/28(a)
66,000‌
67,406‌
7.75%,
3/15/31(a)
66,000‌
69,134‌
Windsor
Holdings
III
LLC
8.50%,
6/15/30(a)
111,000‌
116,523‌
253,063
Diversified
Consumer
Services
(1.3%)
GEMS
MENASA
Cayman
Ltd.
7.13%,
7/31/26(a)
220,000‌
220,467‌
Wand
NewCo
3,
Inc.
7.63%,
1/30/32(a)
47,000‌
48,648‌
269,115
Diversified
REITs
(0.4%)
VICI
Properties
LP
3.75%,
2/15/27(a)
15,000‌
14,226‌
4.63%,
12/1/29(a)
57,000‌
53,942‌
5.75%,
2/1/27(a)
26,000‌
25,987‌
94,155
Diversified
Telecommunication
Services
(3.3%)
CCO
Holdings
LLC
4.50%,
8/15/30(a)
270,000‌
226,442‌
4.75%,
3/1/30
-
2/1/32(a)
200,000‌
168,985‌
6.38%,
9/1/29(a)
112,000‌
106,332‌
Virgin
Media
Finance
plc
5.00%,
7/15/30(a)
220,000‌
186,292‌
688,051
Electric
Utilities
(2.5%)
FirstEnergy
Corp.
4.15%,
7/15/27(b)
99,000‌
95,027‌
NextEra
Energy
Operating
Partners
LP
4.50%,
9/15/27(a)
73,000‌
68,379‌
NRG
Energy,
Inc.
3.63%,
2/15/31(a)
70,000‌
60,478‌
3.88%,
2/15/32(a)
56,000‌
48,036‌
10.25%,
3/15/28(a)(c)(d)
78,000‌
83,744‌
Pattern
Energy
Operations
LP
4.50%,
8/15/28(a)
69,000‌
64,384‌
Vistra
Operations
Co.
LLC
5.00%,
7/31/27(a)
121,000‌
117,265‌
537,313
Face
Amount
Value
Electronic
Equipment,
Instruments
&
Components
(0.5%)
Coherent
Corp.
5.00%,
12/15/29(a)
$
44,000‌
$
41,487‌
Sensata
Technologies,
Inc.
3.75%,
2/15/31(a)
81,000‌
70,148‌
111,635
Energy
Equipment
&
Services
(0.7%)
Transocean,
Inc.
8.75%,
2/15/30(a)
59,400‌
61,974‌
Weatherford
International
Ltd.
8.63%,
4/30/30(a)
77,000‌
80,449‌
142,423
Entertainment
(0.8%)
Cinemark
USA,
Inc.
5.25%,
7/15/28(a)
98,000‌
92,865‌
Playtika
Holding
Corp.
4.25%,
3/15/29(a)
94,000‌
81,455‌
174,320
Financial
Services
(0.6%)
Rocket
Mortgage
LLC
2.88%,
10/15/26(a)
32,000‌
29,595‌
3.63%,
3/1/29(a)
100,000‌
90,051‌
119,646
Food
Products
(1.8%)
Darling
Ingredients,
Inc.
6.00%,
6/15/30(a)
153,000‌
151,743‌
Fiesta
Purchaser,
Inc.
7.88%,
3/1/31(a)
30,000‌
31,004‌
Pilgrim's
Pride
Corp.
3.50%,
3/1/32
130,000‌
110,309‌
6.88%,
5/15/34
30,000‌
32,009‌
Post
Holdings,
Inc.
6.25%,
2/15/32(a)
45,000‌
45,384‌
370,449
Gas
Utilities
(1.0%)
Ferrellgas
LP
5.88%,
4/1/29(a)
120,000‌
114,404‌
Superior
Plus
LP
4.50%,
3/15/29(a)
103,000‌
95,315‌
209,719
Ground
Transportation
(0.5%)
Hertz
Corp.
(The)
4.63%,
12/1/26(a)
14,000‌
12,721‌
5.00%,
12/1/29(a)
117,000‌
90,519‌
103,240
Health
Care
Equipment
&
Supplies
(1.9%)
Avantor
Funding,
Inc.
4.63%,
7/15/28(a)
121,000‌
114,800‌
Bausch
+
Lomb
Corp.
8.38%,
10/1/28(a)
56,000‌
58,011‌
Medline
Borrower
LP
5.25%,
10/1/29(a)
253,000‌
239,321‌
412,132
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
High
Yield
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(95.7%)
(cont’d)
Health
Care
Providers
&
Services
(6.7%)
Encompass
Health
Corp.
4.75%,
2/1/30
$
67,000‌
$
62,821‌
HCA,
Inc.
5.63%,
9/1/28
109,000‌
110,388‌
HealthEquity,
Inc.
4.50%,
10/1/29(a)
125,000‌
115,486‌
Heartland
Dental
LLC
10.50%,
4/30/28(a)
106,000‌
112,758‌
Legacy
LifePoint
Health
LLC
4.38%,
2/15/27(a)
101,000‌
96,327‌
LifePoint
Health,
Inc.
9.88%,
8/15/30(a)
56,000‌
58,648‌
ModivCare
Escrow
Issuer,
Inc.
5.00%,
10/1/29(a)
68,000‌
49,369‌
ModivCare
,
Inc.
5.88%,
11/15/25(a)
96,000‌
93,579‌
Molina
Healthcare,
Inc.
3.88%,
11/15/30
-
5/15/32(a)
213,000‌
188,057‌
Option
Care
Health,
Inc.
4.38%,
10/31/29(a)
188,000‌
172,539‌
Tenet
Healthcare
Corp.
4.38%,
1/15/30
15,000‌
13,877‌
5.13%,
11/1/27
77,000‌
75,374‌
6.13%,
10/1/28
120,000‌
119,670‌
US
Acute
Care
Solutions
LLC
6.38%,
3/1/26(a)
147,000‌
141,688‌
1,410,581
Hotels,
Restaurants
&
Leisure
(8.5%)
1011778
BC
ULC
3.88%,
1/15/28(a)
109,000‌
102,519‌
4.00%,
10/15/30(a)
135,000‌
120,382‌
Boyne
USA,
Inc.
4.75%,
5/15/29(a)
62,000‌
57,512‌
Caesars
Entertainment,
Inc.
4.63%,
10/15/29(a)
194,000‌
177,058‌
6.50%,
2/15/32(a)
40,000‌
40,377‌
7.00%,
2/15/30(a)
112,000‌
115,037‌
Churchill
Downs,
Inc.
5.75%,
4/1/30(a)
100,000‌
96,606‌
Dave
&
Buster's,
Inc.
7.63%,
11/1/25(a)
109,000‌
109,936‌
IRB
Holding
Corp.
7.00%,
6/15/25(a)
55,000‌
55,040‌
Jacobs
Entertainment,
Inc.
6.75%,
2/15/29(a)
123,000‌
119,592‌
Life
Time,
Inc.
5.75%,
1/15/26(a)
165,000‌
163,792‌
Light
&
Wonder
International,
Inc.
7.00%,
5/15/28(a)
111,000‌
111,887‌
NCL
Corp.
Ltd.
7.75%,
2/15/29(a)
95,000‌
98,724‌
NCL
Finance
Ltd.
6.13%,
3/15/28(a)
100,000‌
98,839‌
Raising
Cane's
Restaurants
LLC
9.38%,
5/1/29(a)
55,000‌
59,509‌
Face
Amount
Value
Royal
Caribbean
Cruises
Ltd.
3.70%,
3/15/28
$
25,000‌
$
23,286‌
6.25%,
3/15/32(a)
30,000‌
30,258‌
Viking
Cruises
Ltd.
5.88%,
9/15/27(a)
145,000‌
142,363‌
Yum!
Brands,
Inc.
3.63%,
3/15/31
81,000‌
71,758‌
1,794,475
Household
Durables
(1.5%)
Taylor
Morrison
Communities,
Inc.
5.88%,
6/15/27(a)
91,000‌
90,969‌
Tempur
Sealy
International,
Inc.
3.88%,
10/15/31(a)
120,000‌
102,022‌
TopBuild
Corp.
4.13%,
2/15/32(a)
135,000‌
119,608‌
312,599
Household
Products
(0.3%)
Spectrum
Brands,
Inc.
3.88%,
3/15/31(a)
56,000‌
53,990‌
Independent
Power
and
Renewable
Electricity
Producers
(0.6%)
Calpine
Corp.
5.00%,
2/1/31(a)
56,000‌
51,426‌
5.13%,
3/15/28(a)
74,000‌
71,084‌
122,510
Insurance
(1.4%)
Alliant
Holdings
Intermediate
LLC
7.00%,
1/15/31(a)
31,000‌
31,334‌
HUB
International
Ltd.
7.25%,
6/15/30(a)
55,000‌
56,562‌
Jones
Deslauriers
Insurance
Management,
Inc.
8.50%,
3/15/30(a)
100,000‌
104,325‌
Panther
Escrow
Issuer
LLC
7.13%,
6/1/31(a)
105,000‌
106,839‌
299,060
IT
Services
(2.2%)
Arches
Buyer,
Inc.
4.25%,
6/1/28(a)
102,000‌
89,882‌
Booz
Allen
Hamilton,
Inc.
3.88%,
9/1/28(a)
111,000‌
104,097‌
Gartner,
Inc.
4.50%,
7/1/28(a)
144,000‌
137,343‌
Presidio
Holdings,
Inc.
4.88%,
2/1/27(a)
127,000‌
123,786‌
455,108
Life
Sciences
Tools
&
Services
(0.4%)
Fortrea
Holdings,
Inc.
7.50%,
7/1/30(a)
92,000‌
95,085‌
Machinery
(2.0%)
Calderys
Financing
LLC
11.25%,
6/1/28(a)
101,000‌
108,783‌
Chart
Industries,
Inc.
9.50%,
1/1/31(a)
117,000‌
127,520‌
Esab
Corp.
6.25%,
4/15/29(a)
42,000‌
42,249‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
High
Yield
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(95.7%)
(cont’d)
Husky
Injection
Molding
Systems
Ltd.
9.00%,
2/15/29(a)
$
20,000‌
$
20,708‌
Roller
Bearing
Co.
of
America,
Inc.
4.38%,
10/15/29(a)
125,000‌
114,609‌
413,869
Media
(3.2%)
Clear
Channel
Outdoor
Holdings,
Inc.
5.13%,
8/15/27(a)
123,000‌
116,036‌
7.88%,
4/1/30(a)
47,000‌
46,754‌
DISH
Network
Corp.
11.75%,
11/15/27(a)
74,000‌
75,621‌
McGraw-Hill
Education,
Inc.
5.75%,
8/1/28(a)
101,000‌
95,336‌
Outfront
Media
Capital
LLC
4.63%,
3/15/30(a)
94,000‌
84,368‌
Sirius
XM
Radio,
Inc.
3.13%,
9/1/26(a)
62,000‌
58,127‌
Stagwell
Global
LLC
5.63%,
8/15/29(a)
66,000‌
59,990‌
Townsquare
Media,
Inc.
6.88%,
2/1/26(a)
67,000‌
65,375‌
Univision
Communications,
Inc.
7.38%,
6/30/30(a)
57,000‌
56,411‌
8.00%,
8/15/28(a)
18,000‌
18,350‌
676,368
Metals
&
Mining
(3.1%)
Arsenal
AIC
Parent
LLC
11.50%,
10/1/31(a)
122,000‌
136,032‌
Big
River
Steel
LLC
6.63%,
1/31/29(a)
55,000‌
55,360‌
Compass
Minerals
International,
Inc.
6.75%,
12/1/27(a)
166,000‌
160,637‌
Eldorado
Gold
Corp.
6.25%,
9/1/29(a)
84,000‌
80,787‌
Hudbay
Minerals,
Inc.
4.50%,
4/1/26(a)
57,000‌
55,268‌
6.13%,
4/1/29(a)
35,000‌
34,638‌
Novelis
Corp.
3.25%,
11/15/26(a)
45,000‌
41,976‌
4.75%,
1/30/30(a)
100,000‌
92,346‌
657,044
Oil,
Gas
&
Consumable
Fuels
(11.2%)
Aethon
United
BR
LP
8.25%,
2/15/26(a)
109,000‌
110,357‌
Antero
Midstream
Partners
LP
5.75%,
3/1/27(a)
95,000‌
93,873‌
Cheniere
Energy
Partners
LP
4.00%,
3/1/31
108,000‌
98,257‌
Cheniere
Energy,
Inc.
4.63%,
10/15/28
118,000‌
114,447‌
Civitas
Resources,
Inc.
8.63%,
11/1/30(a)
92,000‌
98,851‌
8.75%,
7/1/31(a)
33,000‌
35,353‌
CrownRock
LP
5.63%,
10/15/25(a)
53,000‌
52,908‌
Face
Amount
Value
DT
Midstream,
Inc.
4.13%,
6/15/29(a)
$
127,000‌
$
116,871‌
Enviva
Partners
LP
6.50%,
1/15/26(a)
68,000‌
29,635‌
EQM
Midstream
Partners
LP
4.50%,
1/15/29(a)
87,000‌
81,655‌
4.75%,
1/15/31(a)
70,000‌
65,161‌
6.50%,
7/1/27(a)
41,000‌
41,399‌
7.50%,
6/1/30(a)
62,000‌
66,332‌
Kinetik
Holdings
LP
5.88%,
6/15/30(a)
113,000‌
110,633‌
Matador
Resources
Co.
6.50%,
4/15/32(a)
55,000‌
55,135‌
Occidental
Petroleum
Corp.
8.50%,
7/15/27
51,000‌
55,397‌
Parkland
Corp.
4.63%,
5/1/30(a)
100,000‌
92,278‌
Permian
Resources
Operating
LLC
5.88%,
7/1/29(a)
177,000‌
174,194‌
Plains
All
American
Pipeline
LP
9.68%,
4/29/24(c)(d)
91,000‌
90,880‌
Southwestern
Energy
Co.
4.75%,
2/1/32
125,000‌
115,170‌
Sunoco
LP
4.50%,
4/30/30
111,000‌
101,744‌
TerraForm
Power
Operating
LLC
4.75%,
1/15/30(a)
32,000‌
29,359‌
5.00%,
1/31/28(a)
89,000‌
84,831‌
Venture
Global
Calcasieu
Pass
LLC
4.13%,
8/15/31(a)
64,000‌
56,957‌
Venture
Global
LNG,
Inc.
8.38%,
6/1/31(a)
217,000‌
223,921‌
9.50%,
2/1/29(a)
20,000‌
21,570‌
9.88%,
2/1/32(a)
16,000‌
17,254‌
Vital
Energy,
Inc.
7.88%,
4/15/32(a)
2,000‌
2,034‌
9.75%,
10/15/30
54,000‌
59,098‌
Western
Midstream
Operating
LP
4.05%,
2/1/30(b)
65,000‌
60,687‌
2,356,241
Passenger
Airlines
(0.9%)
United
Airlines,
Inc.
4.38%,
4/15/26(a)
59,000‌
57,077‌
4.63%,
4/15/29(a)
68,000‌
63,316‌
VistaJet
Malta
Finance
plc
6.38%,
2/1/30(a)
94,000‌
69,416‌
189,809
Personal
Care
Products
(1.0%)
BellRing
Brands,
Inc.
7.00%,
3/15/30(a)
116,000‌
119,623‌
Edgewell
Personal
Care
Co.
4.13%,
4/1/29(a)
80,000‌
73,479‌
Prestige
Brands,
Inc.
3.75%,
4/1/31(a)
25,000‌
21,789‌
214,891
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
High
Yield
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(95.7%)
(cont’d)
Pharmaceuticals
(0.2%)
Catalent
Pharma
Solutions,
Inc.
3.50%,
4/1/30(a)
$
46,000‌
$
43,850‌
Professional
Services
(0.9%)
AMN
Healthcare,
Inc.
4.63%,
10/1/27(a)
56,000‌
53,232‌
VT
Topco,
Inc.
8.50%,
8/15/30(a)
122,000‌
128,898‌
182,130
Real
Estate
Management
&
Development
(0.2%)
Cushman
&
Wakefield
US
Borrower
LLC
6.75%,
5/15/28(a)
48,000‌
47,437‌
Semiconductors
&
Semiconductor
Equipment
(0.4%)
ON
Semiconductor
Corp.
3.88%,
9/1/28(a)
91,000‌
83,698‌
Software
(2.5%)
Central
Parent
LLC
8.00%,
6/15/29(a)
53,000‌
54,987‌
Clarivate
Science
Holdings
Corp.
4.88%,
7/1/29(a)
95,000‌
87,989‌
Cloud
Software
Group,
Inc.
6.50%,
3/31/29(a)
61,000‌
57,937‌
9.00%,
9/30/29(a)
66,000‌
63,365‌
Fair
Isaac
Corp.
4.00%,
6/15/28(a)
85,000‌
79,465‌
NCR
Voyix
Corp.
5.13%,
4/15/29(a)
74,000‌
68,717‌
Open
Text
Corp.
3.88%,
2/15/28(a)
63,000‌
58,392‌
SS&C
Technologies,
Inc.
5.50%,
9/30/27(a)
67,000‌
65,566‌
536,418
Specialty
Retail
(4.3%)
Asbury
Automotive
Group,
Inc.
4.63%,
11/15/29(a)
34,000‌
31,411‌
5.00%,
2/15/32(a)
14,000‌
12,695‌
Bath
&
Body
Works,
Inc.
6.75%,
7/1/36
40,000‌
40,433‌
6.88%,
11/1/35
18,000‌
18,420‌
Evergreen
Acqco
1
LP
9.75%,
4/26/28(a)
68,000‌
73,158‌
Group
1
Automotive,
Inc.
4.00%,
8/15/28(a)
128,000‌
118,076‌
LCM
Investments
Holdings
II
LLC
4.88%,
5/1/29(a)
91,000‌
83,734‌
Lithia
Motors,
Inc.
3.88%,
6/1/29(a)
91,000‌
82,097‌
4.38%,
1/15/31(a)
92,000‌
82,486‌
Murphy
Oil
USA,
Inc.
4.75%,
9/15/29
62,000‌
58,851‌
Sonic
Automotive,
Inc.
4.63%,
11/15/29(a)
129,000‌
115,809‌
4.88%,
11/15/31(a)
134,000‌
117,406‌
Face
Amount
Value
Valvoline,
Inc.
3.63%,
6/15/31(a)
$
88,000‌
$
75,933‌
910,509
Technology
Hardware,
Storage
&
Peripherals
(0.9%)
Seagate
HDD
Cayman
8.25%,
12/15/29(a)
84,000‌
90,342‌
9.63%,
12/1/32
80,000‌
91,234‌
181,576
Textiles,
Apparel
&
Luxury
Goods
(0.2%)
Hanesbrands,
Inc.
9.00%,
2/15/31(a)
43,000‌
44,215‌
Trading
Companies
&
Distributors
(1.4%)
Imola
Merger
Corp.
4.75%,
5/15/29(a)
134,000‌
125,764‌
WESCO
Distribution,
Inc.
6.38%,
3/15/29(a)
32,000‌
32,369‌
6.63%,
3/15/32(a)
33,000‌
33,575‌
7.25%,
6/15/28(a)
108,000‌
110,349‌
302,057
Transportation
Infrastructure
(0.4%)
Seaspan
Corp.
5.50%,
8/1/29(a)
107,000‌
93,454‌
Wireless
Telecommunication
Services
(1.3%)
Sprint
LLC
7.13%,
6/15/24
48,000‌
48,112‌
7.63%,
2/15/25
-
3/1/26
140,000‌
142,664‌
T-Mobile
USA,
Inc.
2.25%,
2/15/26
54,000‌
51,132‌
2.88%,
2/15/31
41,000‌
35,649‌
277,557
Total
Fixed
Income
Securities
(Cost
$19,149,212)
20,196,527
Shares
Short-Term
Investments
(3.8%)
Investment
Company
(
3.8%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(See
Note
G)
(Cost
$800,535)
800,535
800,535
Total
Investments
(99.5%)
(Cost
$19,949,747)
(e)
20,997,062
Other
Assets
in
Excess
of
Liabilities
(0.5%)
95,270
Net
Assets
(100.0%)
$21,092,332
(a)
144A
security
Certain
conditions
for
public
sale
may
exist.
Unless
otherwise
noted,
these
securities
are
deemed
to
be
liquid.
(b)
Multi-step
Coupon
rate
changes
in
predetermined
increments
to
maturity.
Rate
disclosed
is
as
of
March
31,
2024.
Maturity
date
disclosed
is
the
ultimate
maturity
date.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
High
Yield
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
(c)
Perpetual
One
or
more
securities
do
not
have
a
predetermined
maturity
date.
Rates
for
these
securities
are
fixed
for
a
period
of
time,
after
which
they
revert
to
a
floating
rate.
Interest
rates
in
effect
are
as
of
March
31,
2024.
(d)
Floating
or
variable
rate
securities:
The
rates
disclosed
are
as
of
March
31,
2024.
For
securities
based
on
a
published
reference
rate
and
spread,
the
reference
rate
and
spread
are
indicated
in
the
description
in
the
Portfolio
of
Investments.
Certain
variable
rate
securities
may
not
be
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.
These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description
in
the
Portfolio
of
Investments.
(e)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$19,949,747.
The
aggregate
gross
unrealized
appreciation
is
$1,074,903
and
the
aggregate
gross
unrealized
depreciation
is
$27,588,
resulting
in
net
unrealized
appreciation
of
$1,047,315.
REIT
Real
Estate
Investment
Trust
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
73.6‌
%
Oil,
Gas
&
Consumable
Fuels
11.2‌
Hotels,
Restaurants
&
Leisure
8.5‌
Health
Care
Providers
&
Services
6.7‌
Total
Investments
100.0‌%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
High
Yield
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$19,149,212)
$
20,196,527
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$800,535)
800,535
Total
Investments
in
Securities,
at
Value
(Cost
$19,949,747)
20,997,062
Cash
5,289
Receivable
for
Investments
Sold
147,358
Interest
Receivable
309,613
Dividends
Receivable
2,905
Total
Assets
21,462,227
Liabilities:
Payable
for
Investments
Purchased
238,192
Payable
for
Management
Fee
8,495
Payable
for
Dividends
to
Shareholders
123,208
Total
Liabilities
369,895
Net
Assets
$
21,092,332
Net
Assets
Consist
of:
Paid-in-Capital
$
20,000,000
Total
Distributable
Earnings
1,092,332
Net
Assets
$
21,092,332
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
400,000
Net
Asset
Value
Per
Share
$
52
.73
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
High
Yield
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Period
from
October
16,
2023
^
to
March
31,
2024
Investment
Income:
Interest
from
Securities
of
Unaffiliated
Issuers
$
691,557
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
20,156
Total
Investment
Income
711,713
Expenses:
Management
Fee
(Note
B)
45,689
Total
Expenses
45,689
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(
576
)
Net
Expenses
45,113
Net
Investment
Income
666,600
Realized
Gain
(Loss):
Investments
Sold
49,232
Net
Realized
Gain
49,232
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
1,047,315
Net
Change
in
Unrealized
Appreciation
(Depreciation)
1,047,315
Net
Realized
Gain
and
Change
in
Unrealized
Appreciation
(Depreciation)
1,096,547
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
1,763,147
^
Commencement
of
operations.
Semi-Annual
Report
March
31,
2024
Eaton
Vance
High
Yield
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Changes
in
Net
Assets
Period
from
October
16,
2023
^
to
March
31,
2024
(unaudited)
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
666,600
Net
Realized
Gain
49,232
Net
Change
in
Unrealized
Appreciation
(Depreciation)
1,047,315
Net
Increase
in
Net
Assets
Resulting
from
Operations
1,763,147
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(
670,815
)
Total
Dividends
and
Distributions
to
Shareholders
(
670,815
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
20,000,000
Total
Increase
in
Net
Assets
21,092,332
Net
Assets:
Beginning
of
Period
End
of
Period
$
21,092,332
Capital
Share
Transactions:
Beginning
of
Period
Shares
Subscribed
400,000
Shares
Outstanding,
End
of
Period
Net
Increase
in
400,000
^
Commencement
of
Operations
(1)
Total
consists
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Eaton
Vance
High
Yield
ETF
14
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Period
from
October
16,
2023
(1)
to
March
31,
2024
(unaudited)
Net
Asset
Value,
Beginning
of
Period
$
50
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
1
.67‌
Net
Realized
and
Unrealized
Gain
2
.74‌
Total
from
Investment
Operations
4
.41‌
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
1
.68‌
)
Net
Asset
Value,
End
of
Period
$
52
.73‌
Total
Return
(3)
8
.85‌
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$21,092
Net
Assets,
End
of
Period
(Thousands)
$
21,092‌
Ratio
of
Expenses
0
.47‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
6
.96‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.01‌
%
(5)
Portfolio
Turnover
Rate
7‌
%
(4)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
15
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
“Trust”)
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to
establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Act”).
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Eaton
Vance
High
Yield
ETF (the
"Fund"),
which
seeks
to
provide
a
high
level
of
current
income.
The
Fund’s
secondary
objectives
are
to
seek
growth
of
income
and
capital.
The
Fund
is
diversi-
fied. 
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
character-
istics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
or
Morgan
Stanley
Investment
Manage-
ment
Limited
("MSIM
Limited")
(the
"Sub-Adviser"),
each (the a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
bro-
kers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable
brokers/dealers;
(2)
when
market
quotations
are
not
readily
available,
as
de-
fined
by
Rule
2a-5
under
the
Act,
including
circumstanc-
es
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
mar-
ket
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees;
(3)
investments
in
mutual
funds,
including
the
Morgan
Stan-
ley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
16
Morgan
Stanley
ETF
Trust
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
4.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
monthly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
5.
Security
Transactions
and Income:
 Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
income
at
fair
value.
Interest
income
is
recog-
nized
on
the
accrual
basis
(except
where
collection
is
in
doubt)
net
of
applicable
withholding
taxes.
Discounts
are
accreted
and
premiums
are
amortized
over
the
life
of
the
respective
securities.
B.
Management/Sub-Advisory Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
investments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.48% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays substantially
all
the
expenses
of
the
Fund
(in-
cluding
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.
The
Adviser
has
entered
into
a
Sub-Advisory
Agreement
with
the
Sub-Adviser,
a
wholly-owned
subsidiary
of
Morgan
Stanley.
The
Sub-Adviser
provides
the
Fund
with
investment
advisory
services
subject
to
the
overall
supervision
of
the
Adviser
and
the
Trust's
Officers
and
Trustees.
The
Adviser
pays
the
Sub-Adviser
on
a
monthly
basis
a
portion
of
the
net
advisory
fees
the
Advis-
er
receives
from
the
Fund.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:
Fixed
Income
Securities
Corporate
Bonds
$
$
20,196
$
$
20,196
Short-Term
Investments
Investment
Company
801
801
Total
Assets
$801
$20,196
$—
$20,997
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
0.25%
of
its
average
daily
net
assets.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 50,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statement
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the
period ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-
term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $20,397,831
and
$1,419,542,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
or
for
In-Kind
transactions
for
the
period
ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
invest-
ment
in
the
Liquidity
Fund.
For
the
period ended
March
31,
2024, management
fees
paid
were
reduced
by $576 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
period ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
Affiliated
Investment
Company
Value
October
16,
2023
*
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
$
22,328
$
21,527
$
20
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
801
*
Commencement
of
Operations.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
18
Morgan
Stanley
ETF
Trust
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
To
the
extent
that
these
inter-
mediaries
exit
the
business
or
are
unable
to
or
choose
not
to
proceed
with
creation
and/or
redemption
orders
with
respect
to
the
Fund,
such
as
during
periods
of
market
stress,
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.
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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.
20
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
Morgan
Stanley
ETF
Trust
The
Board
considered
the
following
factors
at
the
time
of
approval
of
the
contracts
which
occurred
prior
to
commencement
of
operations.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
the
nature
and
extent
of
the
investment
advisory
and
portfolio
management
services
to
be
provided
by
the
Adviser
and
Sub-Adviser
under
the
investment
management
agreement
and
the
sub-advisory
agreement
(collec-
tively,
the
“Management
Agreement”),
respectively,
including
portfolio
management,
investment
research
and
equity
and
fixed
income
securities
trading.
The
Board
reviewed
similar
information
and
factors
regarding
the
Sub-Adviser,
to
the
extent
applicable.
The
Board
also
reviewed
and
considered
the
nature
and
extent
of
the
non-advisory
services
to
be
provided
by
the
Adviser
under
the
Management
Agreement,
including
operations,
compliance,
business
management
and
planning,
legal
services
and
the
provision
of
supplies,
office
space
and
utilities
at
the
Adviser’s
expense.
The
Board
also
considered
the
Adviser’s
investment
in
personnel
and
infrastructure
that
benefits
the
Fund.
(The
Adviser
and
Sub-Adviser
are
referred
to
as
the
“Adviser.”)
The
Board
also
considered
that
the
Adviser
serves
a
variety
of
other
investment
advisory
clients
and
has
experience
overseeing
service
providers.
The
Board
reviewed
and
considered
the
qualifications
of
the
portfolio
managers
and
other
key
personnel
of
the
Adviser
who
will
provide
the
advisory
services
to
the
Fund.
The
Board
determined
that
the
Adviser's
portfolio
managers
and
key
personnel
are
well
qualified
by
education
and/or
training
and
experience
to
perform
the
services
in
an
efficient
and
professional
manner.
The
Board
concluded
that
the
nature
and
extent
of
the
advisory
services
to
be
provided
were
necessary
and
appropriate
for
the
conduct
of
the
business
and
investment
activities
of
the
Fund
and
supported
its
decision
to
approve
the
Management
Agreement.
Performance,
Fees
and
Expenses
of
the
Fund
The
Board
considered
that
the
Adviser
plans
to
arrange
for
a
public
offering
of
shares
of
the
Fund
to
raise
assets
for
investment
and
that
the
offering
had
not
yet
begun
and
concluded
that,
since
the
Fund
currently
had
no
assets
to
invest
(other
than
seed
capital
required
under
the
Investment
Company
Act)
and
had
no
track
record
of
performance,
this
was
not
a
factor
it
needed
to
address
at
the
present
time.
The
Board
reviewed
the
unitary
management
fee
(the
“management
fee
rate”)
proposed
to
be
paid
by
the
Fund
under
the
Manage-
ment
Agreement,
pursuant
to
which
the
Adviser
would
pay
substantially
all
of
the
operating
expenses
of
the
Fund,
subject
to
certain
exceptions.
The
Board
considered
the
benefits
of
a
unitary
fee
structure
and
considered
the
management
fee
rate
relative
to
compa-
rable
funds
advised
by
the
Adviser
or
its
affiliates,
when
applicable,
and
compared
to
peers
as
determined
by
the
Adviser.
The
Board
reviewed
the
anticipated
total
expense
ratio
of
the
Fund,
which,
due
to
the
unitary
management
fee
structure,
was
equal
to
the
proposed
management
fee
rate.
The
Board
also
considered
that
the
fees
charged
by
the
Fund’s
other
service
providers
would
be
paid
by
the
Adviser
under
the
unitary
management
fee
structure.
The
Board
considered
that
the
Fund
requires
the
Adviser
to
develop
processes,
invest
in
additional
resources
and
incur
additional
risks
to
successfully
manage
the
Fund
and
concluded
that
the
proposed
management
fee
rate
and
anticipated
total
expense
ratio
would
be
competitive
with
its
peer
group
averages.
Economies
of
Scale
The
Board
considered
the
growth
prospects
of
the
Fund
and
the
proposed
unitary
management
fee
schedule,
which
does
not
in-
clude
breakpoints.
The
Board
considered
that
the
unitary
management
fee
rate
was
set
at
a
level
to
anticipate
economies
of
scale
at
lower
asset
levels
before
economies
of
scale
are
achieved
(if
ever).
The
Board
also
considered
that
the
unitary
management
fee
struc-
ture
inherently
reflects
certain
economies
of
scale
because
the
management
fee
rate
is
fixed
at
a
competitive
level
over
the
contract
period
and
therefore
the
management
fee
rate
paid
by
the
Fund
will
not
increase
in
the
future
even
if
the
Fund’s
operating
costs
rise
and
assets
remain
flat
or
decrease.
The
Board
also
considered
that
increases
in
the
Fund’s
assets
would
not
lead
to
a
reduction
to
the
unitary
management
fee
rate
paid
by
the
Fund
in
the
future
even
if
economies
of
scale
were
achieved.
The
Board
considered
that
the
Fund’s
potential
growth
was
uncertain
and
concluded
that
it
would
be
premature
to
consider
economies
of
scale
as
a
factor
in
approving
the
Management
Agreement
at
the
present
time.
Profitability
of
the
Adviser
and
Affiliates
Since
the
Fund
had
not
begun
operations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
this
was
not
a
factor
that
needed
to
be
considered
at
the
present
time.
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
(cont’d)
21
Morgan
Stanley
ETF
Trust
Other
Benefits
of
the
Relationship
The
Board
considered
other
direct
and
indirect
benefits
to
the
Adviser
and/or
its
affiliates
to
be
derived
from
their
relationship
with
the
Fund
and
other
funds
advised
by
the
Adviser.
These
benefits
may
include,
among
other
things,
fees
for
trading,
distribution
and/or
shareholder
servicing
and
for
transaction
processing
and
reporting
platforms
used
by
securities
lending
agents,
and
research
received
by
the
Adviser
generated
from
commission
dollars
spent
on
funds’
portfolio
trading.
Since
the
Fund
had
not
begun
oper-
ations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
these
benefits
were
not
a
factor
that
needed
to
be
consid-
ered
at
the
present
time.
Resources
of
the
Adviser
and
Historical
Relationship
Between
the
Fund
and
the
Adviser
The
Board
considered
whether
the
Adviser
is
financially
sound
and
has
the
resources
necessary
to
perform
its
obligations
under
the
Management
Agreement.
The
Board
also
reviewed
and
considered
the
organizational
structure
of
the
Adviser,
the
policies
and
procedures
formulated
and
adopted
by
the
Adviser
for
managing
the
Fund’s
operations
and
the
Board’s
confidence
in
the
compe-
tence
and
integrity
of
the
senior
managers
and
key
personnel
of
the
Adviser.
The
Board
concluded
that
the
Adviser
has
the
financial
resources
necessary
to
fulfill
its
obligations
under
the
Management
Agreement
and
that
it
is
beneficial
for
the
Fund
to
enter
into
this
relationship
with
the
Adviser.
Other
Factors
and
Current
Trends
The
Board
considered
the
controls
and
procedures
adopted
and
implemented
by
the
Adviser
and
monitored
by
the
Fund’s
Chief
Compliance
Officer
and
concluded
that
the
conduct
of
business
by
the
Adviser
indicates
a
good
faith
effort
on
its
part
to
adhere
to
high
ethical
standards
in
the
conduct
of
the
Fund’s
business.
General
Conclusion
After
considering
and
weighing
all
of
the
above
factors,
with
various
written
materials
and
verbal
information
presented
by
the
Ad-
viser,
the
Board
concluded
that
it
would
be
in
the
best
interest
of
the
Fund
and
its
future
shareholders
to
approve
the
Management
Agreement,
which
will
remain
in
effect
for
two
years
and
thereafter
must
be
approved
annually
by
the
Board
of
the
Fund
if
it
is
to
continue
in
effect.
In
reaching
this
conclusion
the
Board
did
not
give
particular
weight
to
any
single
piece
of
information
or
factor
referenced
above.
It
is
possible
that
individual
Board
members
may
have
weighed
these
factors,
and
the
information
presented,
differently
in
reaching
their
individual
decisions
to
approve
the
Management
Agreement.
22
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program*
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
*
The
Fund
commenced
operations
subsequent
to
the
period
covered
by
the
report,
which
applied
to
other funds
of
the
Trust
during
that
period.
However,
during
the
period
ended
March
31,
2024,
the
Program
applied
to
the
Fund.
23
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
A
copy
of
the
Proxy
Policy,
as
well
as
the
Trust’s
most
recent
proxy
voting
record
for
the
12-month
period
ended
June
30,
as
filed
with
the
SEC,
are
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
is
also
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
24
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
25
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
26
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
27
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Sub-Adviser
Morgan
Stanley
Investment
Management
Limited
25
Cabot
Square,
Canary
Wharf
London,
E14
4Q4,
England
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
EVHYETFSAN
6598608
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Eaton
Vance
Intermediate
Municipal
Income
ETF
NYSE
Arca:
EVIM
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
9
Statement
of
Operations
....................................................................................
10
Statement
of
Changes
in
Net
Assets
........................................................................
11
Financial
Highlights
.........................................................................................
12
Notes
to
Financial
Statements
...............................................................................
13
Investment
Advisory
Agreement
Approval
....................................................................
18
Liquidity
Risk
Management
Program
.........................................................................
20
Important
Notices
..........................................................................................
21
U.S.
Customer
Privacy
Notice
...............................................................................
22
Trustees
and
Officers
Information
...........................................................................
25
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Eaton
Vance
Intermediate
Municipal
Income
ETF (the
“Fund”)
performed
during
the
period
beginning October
16,
2023
(when
the
Fund
commenced
oper-
ations)
and
ended
March
31,
2024.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Eaton
Vance
Intermediate
Municipal
Income
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include
man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
10/16/23-
3/31/24.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(10/16/23)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Eaton
Vance
Intermediate
Municipal
Income
ETF
^
$1,000.00
$1,067.80
$1,021.62
$1.38
$1.35
0.29%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
168/366
(to
reflect
the
actual
days
in
the
period).
**
Annualized.
^
The
Fund
commenced
operations
on
October
16,
2023.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Eaton
Vance
Intermediate
Municipal
Income
ETF
Morgan
Stanley
ETF
Trust
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Returns
for
periods
less
than
one
year
are
not
annualized.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Bloomberg
Municipal
Bond
Index
(1)
and
the
ICE
BofA
2-17
Year
U.S.
Municipal
Securities
Index
(2)
Cumulative
Total
Return
for
the
Period
Ended
March
31,
2024
Since
Inception
(3)
Eaton
Vance
Intermediate
Municipal
Income
ETF
-
NAV
(4)
6.78%
Eaton
Vance
Intermediate
Municipal
Income
ETF
-
Market
Price
(4)
6.96%
Bloomberg
Municipal
Bond
Index
7.20%
ICE
BofA
2-17
Year
U.S.
Municipal
Securities
Index
5.85%
(1)
The
Bloomberg
Municipal
Bond
Index
covers
the
USD
denominated
long-term
tax-exempt
bond
market.
The
index
has
four
main
sectors:
state
and
local
general
obligation
bonds,
revenue
bonds,
insured
bonds,
and
prerefunded
bonds.  The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
The
Fund’s
primary
benchmark
index
was
changed
from
the  ICE
BofA
2-17
Year
U.S.
Municipal
Securities
Index
to
the
Bloomberg
Municipal
Bond
Index
to
comply
with
the
regulation
that
requires
the
Fund’s
primary
benchmark
to
represent
the
overall
applicable
market.
(2)
The
ICE
BofA
2-17
Year
U.S.
Municipal
Securities
Index
is
designed
to
track
the
performance
of
USD-denominated
taxable
municipal
debt
with
a
maturity
between
2
and
17
years
that
is
issued
publicly
by
states
and
territories
within
the
United
States,
as
well
as
their
political
subdivisions,
in
the
U.S.
market.
ICE
®
BofA
®
indices
are
not
for
redistribution
or
other
uses;
provided
“as
is”,
without
warranties,
and
with
no
liability.
Eaton
Vance
has
prepared
this
report
and
ICE
Data
Indices,
LLC
does
not
endorse
it,
or
guarantee,
review,
or
endorse
Eaton
Vance’s
products.
BofA
®
is
a
licensed
registered
trademark
of
Bank
of
America
Corporation
in
the
United
States
and
other
countries.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
Historical
performance
of
the
index
illustrates
market
trends
and
does
not
represent
the
past
or
future
performance
of
the
Fund.
(3)
For
comparative
purposes,
cumulative
total
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(4)
Commenced
operations
on
October
16,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Eaton
Vance
Intermediate
Municipal
Income
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Fixed
Income
Securities
(99.3%)
Municipal
Bonds
(
99
.3
%
)
Alabama
(
1
.3
%
)
County
of
Jefferson
AL,
Sewer
Series
2024
5.00%,
10/1/30
$
250,000
$
278,358
Arizona
(
1
.2
%
)
City
of
Mesa
AZ,
Utility
System
Series
2014
4.00%,
7/1/37
250,000
250,141
California
(
9
.6
%
)
California
Community
Choice
Financing
Authority,
Series
2023
F
5.50%,
10/1/54(a)
495,000
546,042
Los
Angeles
Department
of
Water
&
Power
Water
System,
Series
2022
CC
5.00%,
7/1/42
500,000
564,991
Menifee
Union
School
District,
Series
2017
A
3.25%,
8/1/37
250,000
238,706
Northern
California
Energy
Authority,
Series
2024
5.00%,
12/1/54(a)
70,000
74,879
University
of
California,
Series
2024
BV
5.00%,
5/15/40
500,000
584,551
2,009,169
Colorado
(
6
.3
%
)
Board
of
Governors
of
Colorado
State
University
System,
Series
2023
A-2
4.38%,
3/1/48(a)
500,000
525,667
Colorado
Health
Facilities
Authority,
AdventHealth
Obligated
Group
Series
A-1
5.00%,
11/15/58(a)
500,000
537,270
CommonSpirit
Health
Obligated
Group
Series
2019
B-2
5.00%,
8/1/49(a)
250,000
256,236
1,319,173
Connecticut
(
3
.8
%
)
Connecticut
State
Health
&
Educational
Facilities
Authority,
Quinnipiac
University
Series
M
5.00%,
7/1/29
250,000
257,984
State
of
Connecticut
Special
Tax,
Series
2021
A
5.00%,
5/1/41
500,000
550,786
808,770
District
of
Columbia
(
3
.9
%
)
District
of
Columbia
Income
Tax,
Series
2023
A
5.00%,
5/1/38
250,000
288,842
Metropolitan
Washington
Airports
Authority
Aviation,
Series
A
(AMT)
5.00%,
10/1/31
500,000
516,878
805,720
Face
Amount
Value
Georgia
(
5
.0
%
)
Main
Street
Natural
Gas,
Inc.,
Series
2022
B
5.00%,
12/1/52
-
7/1/53(a)
$
1,000,000
$
1,053,673
Illinois
(
9
.9
%
)
Chicago
Board
of
Education,
Series
2012
B
5.00%,
12/1/33
500,000
500,014
City
of
Chicago
IL,
Series
2021
A
5.00%,
1/1/34
250,000
272,406
Illinois
Finance
Authority,
Ascension
Health
Credit
Group
Series
2016
C
5.00%,
2/15/41
500,000
508,914
State
of
Illinois
Water
Revolving
Fund
-
Clean
Water
Program
Series
2017
5.00%,
7/1/32
425,000
446,632
State
of
Illinois
IL,
Series
2020
5.50%,
5/1/39
315,000
346,797
2,074,763
Kentucky
(
0
.5
%
)
Kentucky
Economic
Development
Finance
Authority,
Republic
Services,
Inc.
Series
2010
B
3.80%,
4/1/31(a)
100,000
99,926
Massachusetts
(
3
.1
%
)
Commonwealth
of
Massachusetts,
Series
2015
B
4.00%,
5/1/45
250,000
245,414
Massachusetts
Clean
Water
Trust
(The),
Massachusetts
Clean
Water
State
Revolving
Fund
Series
B-25
5.00%,
2/1/43
350,000
395,067
640,481
Michigan
(
2
.9
%
)
City
of
Detroit
MI,
Series
2020
5.50%,
4/1/40
250,000
265,640
Michigan
State
Housing
Development
Authority,
Series
B
3.35%,
12/1/34
335,000
328,190
593,830
Nebraska
(
2
.8
%
)
Nebraska
Public
Power
District,
Series
2016
A
5.00%,
1/1/25
575,000
581,545
New
Jersey
(
3
.8
%
)
Monmouth
County
Improvement
Authority
(The),
Series
2024
4.00%,
3/14/25
250,000
251,397
New
Jersey
Transportation
Trust
Fund
Authority,
Series
2022
CC
5.00%,
6/15/42
500,000
550,241
801,638
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Intermediate
Municipal
Income
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Municipal
Bonds
(99.3%)
(cont’d)
New
York
(
13
.6
%
)
New
York
City
Transitional
Finance
Authority,
Future
Tax
Secured
Series
2024
C
5.00%,
5/1/37
$
500,000
$
581,169
New
York
State
Urban
Development
Corp.,
State
of
New
York
Sales
Tax
Series
2023
A
5.00%,
3/15/44
500,000
557,257
New
York
Transportation
Development
Corp.,
Delta
Air
Lines,
Inc.
Series
2023
(AMT)
5.63%,
4/1/40
250,000
273,198
JFK
International
Air
Terminal
LLC
Series
2022
(AMT)
5.00%,
12/1/32
500,000
554,358
JFK
NTO
LLC
Series
2023
(AMT)
5.50%,
6/30/38
250,000
278,302
Utility
Debt
Securitization
Authority,
Series
2023
TE-1
5.00%,
12/15/41
500,000
579,786
2,824,070
North
Carolina
(
1
.2
%
)
North
Carolina
Municipal
Power
Agency
No.
1,
Series
A
5.00%,
1/1/27
250,000
257,389
Ohio
(
0
.8
%
)
County
of
Franklin
OH,
Trinity
Health
Corp.
Obligated
Group
Series
2013
OH
3.70%,
12/1/46(a)
165,000
164,921
Pennsylvania
(
7
.8
%
)
Allegheny
County
Industrial
Development
Authority,
United
States
Steel
Corp.
Series
2019
4.88%,
11/1/24
220,000
220,447
City
of
Philadelphia
PA,
Airport
Series
2017
B
(AMT)
5.00%,
7/1/25
500,000
506,433
Pennsylvania
Economic
Development
Financing
Authority,
UPMC
Obligated
Group
Series
2014
A
5.00%,
2/1/25
250,000
250,921
Waste
Management
Obligated
Group
Series
2013
(AMT)
4.10%,
8/1/45(a)
250,000
249,897
School
District
of
Philadelphia
(The),
Series
2024
A
5.00%,
6/28/24
420,000
420,905
1,648,603
Puerto
Rico
(
3
.3
%
)
Commonwealth
of
Puerto
Rico,
Series
2022
A-1
5.63%,
7/1/27
221,000
235,214
Face
Amount
Value
Puerto
Rico
Sales
Tax
Financing
Corp.
Sales
Tax,
Series
A-2
4.33%,
7/1/40
$
465,000
$
465,671
700,885
South
Carolina
(
1
.2
%
)
City
of
Aiken
SC,
Water
&
Sewer
System
Series
2024
A
4.00%,
8/1/49
250,000
244,342
Texas
(
12
.2
%
)
Aldine
Independent
School
District,
Series
2024
4.00%,
2/15/54
200,000
189,475
Cypress-Fairbanks
Independent
School
District,
Series
2023
A
5.00%,
2/15/37
250,000
289,972
Dallas
Independent
School
District,
Series
2023
5.00%,
2/15/42
260,000
287,600
Harris
County
Cultural
Education
Facilities
Finance
Corp.,
Memorial
Hermann
Health
System
Obligated
Group
Series
2022
A
5.00%,
7/1/29
250,000
274,198
Texas
Children's
Hospital
Obligated
Group
Series
2015-1
5.00%,
10/1/28
500,000
512,476
Humble
Independent
School
District,
Series
2024
4.00%,
2/15/54
250,000
241,737
North
Texas
Tollway
Authority,
Series
2023
A
5.00%,
1/1/41
250,000
278,476
Prosper
Independent
School
District,
Series
2024
4.00%,
2/15/54
250,000
240,090
Texas
Private
Activity
Bond
Surface
Transportation
Corp.,
NTE
Mobility
Partners
Segments
3
LLC
Series
2023
(AMT)
5.38%,
6/30/38
250,000
269,415
2,583,439
Virginia
(
1
.7
%
)
Virginia
Small
Business
Financing
Authority,
95
Express
Lanes
LLC
Series
2022
(AMT)
5.00%,
7/1/38
335,000
355,435
Washington
(
3
.4
%
)
Energy
Northwest,
Bonneville
Power
Administration
Series
2021
A
5.00%,
7/1/41
405,000
446,362
University
of
Washington,
Series
2024
A
5.00%,
4/1/44
250,000
280,178
726,540
Total
Fixed
Income
Securities
(Cost
$19,888,122)
20,822,811
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Intermediate
Municipal
Income
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Short-Term
Investments
(
0
.2
%
)
Investment
Company
(
0
.2
%
)
BlackRock
Liquidity
Funds
-
MuniCash
-
Institutional
Shares  3.48%
(Cost
$49,255)
49,250
$
49,255
Total
Investments
(99.5%)
(Cost
$19,937,377)
(b)
20,872,066
Other
Assets
in
Excess
of
Liabilities
(0.5%)
109,408
Net
Assets
(100.0%)
$20,981,474
(a)
Floating
or
variable
rate
securities:
The
rates
disclosed
are
as
of
March
31,
2024.
For
securities
based
on
a
published
reference
rate
and
spread,
the
reference
rate
and
spread
are
indicated
in
the
description
in
the
Portfolio
of
Investments.
Certain
variable
rate
securities
may
not
be
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.
These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description
in
the
Portfolio
of
Investments.
(b)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$19,937,377.
The
aggregate
gross
unrealized
appreciation
is
$944,123
and
the
aggregate
gross
unrealized
depreciation
is
$9,434,
resulting
in
net
unrealized
appreciation
of
$934,689.
AMT
Alternative
Minimum
Tax
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Intermediate
Municipal
Income
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Summary
of
Investments
by
State
Classification  
Percentage
of
Total
Investments
Other*
35
.3‌
%
New
York
13
.5‌
Texas
12
.4‌
Illinois
9
.9‌
California
9
.6‌
Pennsylvania
7
.9‌
Colorado
6
.3‌
Georgia
5
.1‌
Total
Investments
100
.0‌
%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Intermediate
Municipal
Income
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$19,937,377)
$
20,872,066
Receivable
for
Investments
Sold
307,081
Interest
Receivable
257,190
Total
Assets
21,436,337
Liabilities:
Payable
for
Investments
Purchased
379,960
Payable
for
Management
Fee
5,173
Payable
for
Dividends
to
Shareholders
69,730
Total
Liabilities
454,863
Net
Assets
$
20,981,474
Net
Assets
Consist
of:
Paid-in-Capital
$
20,000,000
Total
Distributable
Earnings
981,474
Net
Assets
$
20,981,474
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
400,000
Net
Asset
Value
Per
Share
$
52
.45
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Intermediate
Municipal
Income
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Period
from
October
16,
2023
^
to
March
31,
2024
Investment
Income:
Interest
from
Securities
of
Unaffiliated
Issuers
$
402,800
Total
Investment
Income
402,800
Expenses:
Management
Fee
(Note
B)
27,582
Total
Expenses
27,582
Net
Investment
Income
375,218
Realized
Gain
(Loss):
Investments
Sold
49,363
Net
Realized
Gain
49,363
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
934,689
Net
Change
in
Unrealized
Appreciation
(Depreciation)
934,689
Net
Realized
Gain
and
Change
in
Unrealized
Appreciation
(Depreciation)
984,052
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
1,359,270
^
Commencement
of
operations.
Semi-Annual
Report
March
31,
2024
Eaton
Vance
Intermediate
Municipal
Income
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Changes
in
Net
Assets
Period
from
October
16,
2023
^
to
March
31,
2024
(unaudited)
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
375,218
Net
Realized
Gain
49,363
Net
Change
in
Unrealized
Appreciation
(Depreciation)
934,689
Net
Increase
in
Net
Assets
Resulting
from
Operations
1,359,270
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(
377,796
)
Total
Dividends
and
Distributions
to
Shareholders
(
377,796
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
20,000,000
Total
Increase
in
Net
Assets
20,981,474
Net
Assets:
Beginning
of
Period
End
of
Period
$
20,981,474
Capital
Share
Transactions:
Beginning
of
Period
Shares
Subscribed
400,000
Shares
Outstanding,
End
of
Period
Net
Increase
in
400,000
^
Commencement
of
Operations
(1)
Total
consists
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Eaton
Vance
Intermediate
Municipal
Income
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Period
from
October
16,
2023
(1)
to
March
31,
2024
(unaudited)
Net
Asset
Value,
Beginning
of
Period
$
50
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
0
.94‌
Net
Realized
and
Unrealized
Gain
2
.45‌
Total
from
Investment
Operations
3
.39‌
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
0
.94‌
)
Net
Asset
Value,
End
of
Period
$
52
.45‌
Total
Return
(3)
6
.78‌
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$20,981
Net
Assets,
End
of
Period
(Thousands)
$
20,981‌
Ratio
of
Expenses
0
.29‌
%
(5)
Ratio
of
Net
Investment
Income
3
.92‌
%
(5)
Portfolio
Turnover
Rate
59‌
%
(4)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
13
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
“Trust”)
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to
establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Act”).
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Eaton
Vance
Intermediate
Municipal
Income
ETF (the
"Fund"),
which
seeks
to
provide
current
income
exempt
from
regular
federal
income
tax.
The
Fund
is
diversified. 
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteris-
tics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
bro-
kers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable
brokers/dealers;
(2)
when
market
quotations
are
not
readily
available,
as
de-
fined
by
Rule
2a-5
under
the
Act,
including
circumstanc-
es
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
mar-
ket
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees;
(3)
investments
in
mutual
funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
 Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
14
Morgan
Stanley
ETF
Trust
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
4.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
monthly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
5.
Security
Transactions
and Income:
 Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
income
at
fair
value.
Interest
income
is
recog-
nized
on
the
accrual
basis
(except
where
collection
is
in
doubt)
net
of
applicable
withholding
taxes.
Discounts
are
accreted
and
premiums
are
amortized
over
the
life
of
the
respective
securities.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.29% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:
Fixed
Income
Securities
Municipal
Bonds
$
$
20,823
$
$
20,823
Short-Term
Investments
Investment
Company
49
49
Total
Assets
$49
$20,823
$—
$20,872
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
15
Morgan
Stanley
ETF
Trust
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 25,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statement
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the
period ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-
term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $31,876,444
and
$12,129,065,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
or
for
In-Kind
transactions
for
the
period ended
March
31,
2024.
.
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
16
Morgan
Stanley
ETF
Trust
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
folowing:
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
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,
such
as
during
periods
of
market
stress,
and
no
other
authorized
participant
creates
or
redeems,
shares
may
trade
at
a
discount
to
NAV
and
possibly
face
trading
halts
and/
or
delisting.
Cash
Transactions
Risk:
Unlike
certain
ETFs,
the
Fund
may
effect
creations
and
redemptions
in
cash
or
partially
in
cash.
Therefore,
it
may
be
required
to
sell
portfolio
securities
and
subsequently
recognize
gains
on
such
sales
that
the
Fund
might
not
have
recognized
if
it
were
to
distribute
portfolio
securities
in-kind.
As
such,
investments
in
shares
may
be
less
tax-efficient
than
an
investment
in
an
ETF
that
distributes
portfolio
securities
entirely
in-kind. 
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
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
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
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
circumstanc-
es,
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. 
18
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
Morgan
Stanley
ETF
Trust
The
Board
considered
the
following
factors
at
the
time
of
approval
of
the
contracts
which
occurred
prior
to
commencement
of
operations.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
the
nature
and
extent
of
the
investment
advisory
and
portfolio
management
services
to
be
pro-
vided
by
the
Adviser
under
the
investment
management
agreement
(the
“Management
Agreement”),
including
portfolio
manage-
ment,
investment
research
and
equity
and
fixed
income
securities
trading.
The
Board
also
reviewed
and
considered
the
nature
and
extent
of
the
non-advisory
services
to
be
provided
by
the
Adviser
under
the
Management
Agreement,
including
operations,
com-
pliance,
business
management
and
planning,
legal
services
and
the
provision
of
supplies,
office
space
and
utilities
at
the
Adviser’s
expense.
The
Board
also
considered
the
Adviser’s
investment
in
personnel
and
infrastructure
that
benefits
the
Fund.
The
Board
also
considered
that
the
Adviser
serves
a
variety
of
other
investment
advisory
clients
and
has
experience
overseeing
service
providers.
The
Board
reviewed
and
considered
the
qualifications
of
the
portfolio
managers
and
other
key
personnel
of
the
Adviser
who
will
provide
the
advisory
services
to
the
Fund.
The
Board
determined
that
the
Adviser's
portfolio
managers
and
key
personnel
are
well
qualified
by
education
and/or
training
and
experience
to
perform
the
services
in
an
efficient
and
professional
manner.
The
Board
concluded
that
the
nature
and
extent
of
the
advisory
services
to
be
provided
were
necessary
and
appropriate
for
the
conduct
of
the
business
and
investment
activities
of
the
Fund
and
supported
its
decision
to
approve
the
Management
Agreement.
Performance,
Fees
and
Expenses
of
the
Fund
The
Board
considered
that
the
Adviser
plans
to
arrange
for
a
public
offering
of
shares
of
the
Fund
to
raise
assets
for
investment
and
that
the
offering
had
not
yet
begun
and
concluded
that,
since
the
Fund
currently
had
no
assets
to
invest
(other
than
seed
capital
required
under
the
Investment
Company
Act)
and
had
no
track
record
of
performance,
this
was
not
a
factor
it
needed
to
address
at
the
present
time.
The
Board
reviewed
the
unitary
management
fee
(the
“management
fee
rate”)
proposed
to
be
paid
by
the
Fund
under
the
Manage-
ment
Agreement,
pursuant
to
which
the
Adviser
would
pay
substantially
all
of
the
operating
expenses
of
the
Fund,
subject
to
certain
exceptions.
The
Board
considered
the
benefits
of
a
unitary
fee
structure
and
considered
the
management
fee
rate
relative
to
compa-
rable
funds
advised
by
the
Adviser
or
its
affiliates,
when
applicable,
and
compared
to
peers
as
determined
by
the
Adviser.
The
Board
reviewed
the
anticipated
total
expense
ratio
of
the
Fund,
which,
due
to
the
unitary
management
fee
structure,
was
equal
to
the
proposed
management
fee
rate.
The
Board
also
considered
that
the
fees
charged
by
the
Fund’s
other
service
providers
would
be
paid
by
the
Adviser
under
the
unitary
management
fee
structure.
The
Board
considered
that
the
Fund
requires
the
Adviser
to
develop
processes,
invest
in
additional
resources
and
incur
additional
risks
to
successfully
manage
the
Fund
and
concluded
that
the
proposed
management
fee
rate
and
anticipated
total
expense
ratio
would
be
competitive
with
its
peer
group
averages.
Economies
of
Scale
The
Board
considered
the
growth
prospects
of
the
Fund
and
the
proposed
unitary
management
fee
schedule,
which
does
not
in-
clude
breakpoints.
The
Board
considered
that
the
unitary
management
fee
rate
was
set
at
a
level
to
anticipate
economies
of
scale
at
lower
asset
levels
before
economies
of
scale
are
achieved
(if
ever).
The
Board
also
considered
that
the
unitary
management
fee
struc-
ture
inherently
reflects
certain
economies
of
scale
because
the
management
fee
rate
is
fixed
at
a
competitive
level
over
the
contract
period
and
therefore
the
management
fee
rate
paid
by
the
Fund
will
not
increase
in
the
future
even
if
the
Fund’s
operating
costs
rise
and
assets
remain
flat
or
decrease.
The
Board
also
considered
that
increases
in
the
Fund’s
assets
would
not
lead
to
a
reduction
to
the
unitary
management
fee
rate
paid
by
the
Fund
in
the
future
even
if
economies
of
scale
were
achieved.
The
Board
considered
that
the
Fund’s
potential
growth
was
uncertain
and
concluded
that
it
would
be
premature
to
consider
economies
of
scale
as
a
factor
in
approving
the
Management
Agreement
at
the
present
time.
Profitability
of
the
Adviser
and
Affiliates
Since
the
Fund
had
not
begun
operations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
this
was
not
a
factor
that
needed
to
be
considered
at
the
present
time.
Other
Benefits
of
the
Relationship
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
(cont’d)
19
Morgan
Stanley
ETF
Trust
The
Board
considered
other
direct
and
indirect
benefits
to
the
Adviser
and/or
its
affiliates
to
be
derived
from
their
relationship
with
the
Fund
and
other
funds
advised
by
the
Adviser.
These
benefits
may
include,
among
other
things,
fees
for
trading,
distribution
and/or
shareholder
servicing
and
for
transaction
processing
and
reporting
platforms
used
by
securities
lending
agents,
and
research
received
by
the
Adviser
generated
from
commission
dollars
spent
on
funds’
portfolio
trading.
Since
the
Fund
had
not
begun
oper-
ations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
these
benefits
were
not
a
factor
that
needed
to
be
consid-
ered
at
the
present
time.
Resources
of
the
Adviser
and
Historical
Relationship
Between
the
Fund
and
the
Adviser
The
Board
considered
whether
the
Adviser
is
financially
sound
and
has
the
resources
necessary
to
perform
its
obligations
under
the
Management
Agreement.
The
Board
also
reviewed
and
considered
the
organizational
structure
of
the
Adviser,
the
policies
and
procedures
formulated
and
adopted
by
the
Adviser
for
managing
the
Fund’s
operations
and
the
Board’s
confidence
in
the
compe-
tence
and
integrity
of
the
senior
managers
and
key
personnel
of
the
Adviser.
The
Board
concluded
that
the
Adviser
has
the
financial
resources
necessary
to
fulfill
its
obligations
under
the
Management
Agreement
and
that
it
is
beneficial
for
the
Fund
to
enter
into
this
relationship
with
the
Adviser.
Other
Factors
and
Current
Trends
The
Board
considered
the
controls
and
procedures
adopted
and
implemented
by
the
Adviser
and
monitored
by
the
Fund’s
Chief
Compliance
Officer
and
concluded
that
the
conduct
of
business
by
the
Adviser
indicates
a
good
faith
effort
on
its
part
to
adhere
to
high
ethical
standards
in
the
conduct
of
the
Fund’s
business.
General
Conclusion
After
considering
and
weighing
all
of
the
above
factors,
with
various
written
materials
and
verbal
information
presented
by
the
Ad-
viser,
the
Board
concluded
that
it
would
be
in
the
best
interest
of
the
Fund
and
its
future
shareholders
to
approve
the
Management
Agreement,
which
will
remain
in
effect
for
two
years
and
thereafter
must
be
approved
annually
by
the
Board
of
the
Fund
if
it
is
to
continue
in
effect.
In
reaching
this
conclusion
the
Board
did
not
give
particular
weight
to
any
single
piece
of
information
or
factor
referenced
above.
It
is
possible
that
individual
Board
members
may
have
weighed
these
factors,
and
the
information
presented,
differently
in
reaching
their
individual
decisions
to
approve
the
Management
Agreement.
20
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program*
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
*
The
Fund
commenced
operations
subsequent
to
the
period
covered
by
the
report,
which
applied
to
other funds
of
the
Trust
during
that
period.
However,
during
the
period
ended
March
31,
2024,
the
Program
applied
to
the
Fund.
21
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
A
copy
of
the
Proxy
Policy,
as
well
as
the
Trust’s
most
recent
proxy
voting
record
for
the
12-month
period
ended
June
30,
as
filed
with
the
SEC,
are
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
is
also
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
22
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
23
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
24
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
25
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
 EVIMIETFSAN
6598635
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Eaton
Vance
Short
Duration
Municipal
Income
ETF
NYSE
Arca:
EVSM
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
9
Statement
of
Operations
....................................................................................
10
Statements
of
Changes
in
Net
Assets
.......................................................................
11
Financial
Highlights
.........................................................................................
12
Notes
to
Financial
Statements
...............................................................................
13
Investment
Advisory
Agreement
Approval
....................................................................
19
Liquidity
Risk
Management
Program
.........................................................................
21
Important
Notices
..........................................................................................
22
U.S.
Customer
Privacy
Notice
...............................................................................
23
Trustees
and
Officers
Information
...........................................................................
26
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Eaton
Vance
Short
Duration
Municipal
Income
ETF (the
“Fund”)
performed
during
the
latest
six-month
period.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Eaton
Vance
Short
Duration
Municipal
Income
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
six-month
period
ended
March
31,
2024 and
held
for
the
entire
six-month
period.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(
10/1/23
)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Eaton
Vance
Short
Duration
Municipal
Income
ETF
$1,000.00
$1,030.70
$1,023.80
$1.22
$1.21
0.24%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
183/366
(to
reflect
the
most
recent
one-half
year
period).
**
Annualized.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Eaton
Vance
Short
Duration
Municipal
Income
ETF
Morgan
Stanley
ETF
Trust
*
Cumulative
return
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.morganstanley.com/im.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares. Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Bloomberg
Municipal
Bond
Index
(1)
,
ICE
BofA
1-3
Year
U.S.
Municipal
Securities
Index
(2)
and
the
Short
Duration
Municipal
Income
Blend
Index
(3)
Period
Ended
March
31,
2024
Total
Returns
(4)
Average
Annual
Six
Months
*
One
Year
Five
Years
Since
Inception
(5)
Eaton
Vance
Short
Duration
Municipal
Income
ETF
-
NAV
(6)
3.07%
4.22%
1.58%
1.58%
Eaton
Vance
Short
Duration
Municipal
Income
ETF
-
Market
Price
(6)
3.20%
4.34%
1.60%
1.60%
Bloomberg
Municipal
Bond
Index
7.48%
3.13%
1.59%
2.14%
ICE
BofA
1-3
Year
U.S.
Municipal
Securities
Index
2.77%
2.23%
1.11%
1.26%
Short
Duration
Municipal
Income
Blend
Index
2.77%
3.14%
1.31%
1.32%
(1)
The
Bloomberg
Municipal
Bond
Index
covers
the
USD
denominated
long-term
tax-exempt
bond
market.
The
index
has
four
main
sectors:
state
and
local
general
obligation
bonds,
revenue
bonds,
insured
bonds,
and
prerefunded
bonds.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
The
Fund’s
primary
benchmark
index
was
changed
from
the
ICE
BofA
1-3
Year
US
Municipal
Securities
Index
to
the
Bloomberg
Municipal
Bond
Index
to
comply
with
the
regulation
that
requires
the
Fund’s
primary
benchmark
to
represent
the
overall
applicable
market.
(2)
The
ICE
BofA
(Intercontinental
Exchange
Bank
of
America)
1-3
Year
U.S.
Municipal
Securities
Index
is
a
subset
of
ICE
BofA
U.S.
Municipal
Securities
Index
including
all
securities
with
a
remaining
term
to
final
maturity
less
than
3
years.
ICE
BofA
U.S.
Municipal
Securities
Index
tracks
the
performance
of
U.S.
dollar
denominated
investment
grade
tax
exempt
debt
publicly
issued
by
U.S.
states
and
territories,
and
their
political
subdivisions,
in
the
U.S.
domestic
market.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
(3)
The
Short
Duration
Municipal
Income
Blended
Index
is
a
performance
linked
benchmark
of
the
old
and
new
benchmark
of
the
Fund.
The
old
benchmark
represented
by
Bloomberg
BVAL
Municipal
AAA
Yield
Curve
(Callable)
3-Month
Index
from
the
Fund’s
inception
to
July
30,
2023
and
the
new
benchmark
represented
by
ICE
BofA
1-3
Year
US
Municipal
Securities
Index
for
the
periods
thereafter.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
(4)
On
March
22,
2024,
Morgan
Stanley
Institutional
Fund
Trust
-
Short
Duration
Municipal
Income
Portfolio
(the
“Predecessor
Fund”),
which
operated
as
a
mutual
fund,
was
reorganized
into
the
Fund
(“Reorganization”).
The
Predecessor
Fund’s
investment
objective
was
substantially
similar
to
the
Fund’s
and
the
Predecessor
Fund
was
managed
in
a
manner
that,
in
all
material
respects,
complied
with
the
investment
guidelines
and
restrictions
of
the
Fund.
The
Predecessor
Fund
was
designated
as
the
accounting
survivor
in
the
Reorganization.
As
a
result,
the
Fund
assumed
the
Predecessor
Fund’s
historical
performance
and
the
performance
information
shown
above
reflects
that
of
the
Class
IR
shares
of
the
Predecessor
Fund,
which
had
a
different
fee
structure
than
the
Fund.
The
performance
of
the
Predecessor
Fund
has
not
been
restated
to
reflect
the
annual
operating
expenses
of
the
Fund,
which
were
lower
than
those
of
the
Predecessor
Fund.
Past
performance
may
have
been
different
if
the
Fund’s
current
fee
structure
had
been
in
place
during
the
period.
(5)
For
comparative
purposes,
average
annual
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(6)
Since
Inception
reflects
the
inception
date
of
the
Predecessor
Fund
(commenced
operations
on
12/19/2018).
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Eaton
Vance
Short
Duration
Municipal
Income
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Fixed
Income
Securities
(97.7%)
Municipal
Bonds
(
97
.7
%
)
Alabama
(
3
.0
%
)
Black
Belt
Energy
Gas
District,
Series
2023
D-1
5.50%,
6/1/49(a)
$
2,450,000
$
2,612,238
County
of
Jefferson
AL,
Sewer
Series
2024
5.00%,
10/1/27
1,000,000
1,059,890
3,672,128
Arizona
(
1
.6
%
)
Chandler
Industrial
Development
Authority,
Intel
Corp.
Series
2007
(AMT)
4.10%,
12/1/37(a)
2,000,000
2,011,349
California
(
2
.3
%
)
California
Community
Choice
Financing
Authority,
Series
2023
F
5.50%,
10/1/54(a)
1,000,000
1,103,115
California
State
Public
Works
Board,
Series
2023
C
5.00%,
9/1/27
1,600,000
1,717,750
2,820,865
Colorado
(
6
.5
%
)
Board
of
Governors
of
Colorado
State
University
System,
Series
2023
A-2
4.38%,
3/1/48(a)
1,000,000
1,051,333
Colorado
Health
Facilities
Authority,
AdventHealth
Obligated
Group
Series
A-1
5.00%,
11/15/58(a)
2,000,000
2,149,082
CommonSpirit
Health
Obligated
Group
Series
2019
B-2
5.00%,
8/1/49(a)
1,500,000
1,537,416
Colorado
State
Education
Loan
Program,
Series
2023
B
4.50%,
6/28/24
1,500,000
1,503,103
E-470
Public
Highway
Authority,
Series
2000
B
–%,
9/1/25
2,000,000
1,902,802
8,143,736
Connecticut
(
4
.3
%
)
City
of
New
Haven
CT,
Series
2019
A
5.00%,
8/1/24
1,000,000
1,002,855
Connecticut
State
Health
&
Educational
Facilities
Authority,
Quinnipiac
University
Series
L
5.00%,
7/1/24
1,900,000
1,905,171
State
of
Connecticut,
Special
Tax
Series
2023
A
5.00%,
7/1/25
2,400,000
2,451,467
5,359,493
Face
Amount
Value
Florida
(
3
.6
%
)
County
of
Broward
FL,
Airport
System
Series
A
(AMT)
5.00%,
10/1/29
$
2,000,000
$
2,031,542
School
Board
of
Miami-Dade
County
(The),
Series
2023
5.00%,
6/18/24
2,500,000
2,506,479
4,538,021
Georgia
(
3
.7
%
)
Development
Authority
of
Burke
County
(The),
Georgia
Power
Co.
Series
2013-1
3.38%,
11/1/53(a)
500,000
497,345
Main
Street
Natural
Gas,
Inc.,
Series
2021
A
4.00%,
7/1/52(a)
2,500,000
2,520,623
Series
2023
D
5.00%,
5/1/54(a)
1,500,000
1,577,251
4,595,219
Illinois
(
13
.1
%
)
Chicago
Board
of
Education,
Series
2017
D
5.00%,
12/1/25
1,200,000
1,219,841
Chicago
Midway
International
Airport,
Series
2023
B
5.00%,
1/1/26
1,000,000
1,031,356
City
of
Chicago
IL,
Series
2020
A
5.00%,
1/1/27
2,000,000
2,084,188
Illinois
Finance
Authority,
Series
2020
3.88%,
5/1/40(a)
1,500,000
1,505,992
OSF
Healthcare
System
Obligated
Group
Series
2020
B-2
5.00%,
5/15/50(a)
2,500,000
2,567,541
Metropolitan
Pier
&
Exposition
Authority,
Series
2023
A
5.00%,
12/15/28
1,000,000
1,054,753
Railsplitter
Tobacco
Settlement
Authority,
Series
2017
5.00%,
6/1/24
1,000,000
1,001,466
Sales
Tax
Securitization
Corp.,
Series
2020
A
5.00%,
1/1/27
1,290,000
1,355,632
State
of
Illinois,
Sales
Tax
Series
2021
A
4.00%,
6/15/25
1,750,000
1,766,450
State
of
Illinois
IL,
Series
2017
D
5.00%,
11/1/28
2,500,000
2,651,129
16,238,348
Indiana
(
2
.9
%
)
City
of
Whiting
IN,
BP
Products
North
America,
Inc.
Series
2019
A
(AMT)
5.00%,
12/1/44(a)
2,500,000
2,554,060
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Short
Duration
Municipal
Income
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Municipal
Bonds
(97.7%)
(cont’d)
Indiana
(2.9%)
(cont’d)
Indiana
Housing
&
Community
Development
Authority,
Triple
P
Apartments
LP
Series
2023
4.10%,
9/1/28(a)
$
1,000,000
$
1,002,495
3,556,555
Kentucky
(
2
.0
%
)
Kentucky
Economic
Development
Finance
Authority,
Republic
Services,
Inc.
Series
2010
B
3.80%,
4/1/31(a)
900,000
899,336
University
of
Kentucky,
Series
2014
D
3.00%,
10/1/25
1,600,000
1,584,902
2,484,238
Michigan
(
5
.1
%
)
Michigan
Finance
Authority,
Trinity
Health
Corp.
Obligated
Group
Series
2015
MI
4.49%,
12/1/39(a)
2,000,000
2,000,400
Saginaw
Valley
State
University,
Series
2016
A
5.00%,
7/1/30
1,750,000
1,813,959
Wayne
County
Airport
Authority,
Detroit
Metropolitan
Wayne
County
Airport
Series
F
(AMT)
5.00%,
12/1/31
2,500,000
2,544,716
6,359,075
Minnesota
(
1
.2
%
)
Minnesota
Rural
Water
Finance
Authority,
Inc.,
Series
2023
4.38%,
4/1/25
1,500,000
1,501,284
Missouri
(
3
.1
%
)
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri,
BJC
Healthcare
Obligated
Group
Series
2021
A
4.00%,
7/1/26
1,100,000
1,118,229
St
Luke's
Health
System
Obligated
Group
Series
2016
5.00%,
11/15/28
1,300,000
1,353,034
Missouri
Joint
Municipal
Electric
Utility
Commission,
Series
2023
5.00%,
1/1/26
1,345,000
1,382,548
3,853,811
New
Jersey
(
2
.6
%
)
Monmouth
County
Improvement
Authority
(The),
Series
2024
4.00%,
3/14/25
1,500,000
1,508,384
New
Jersey
Economic
Development
Authority,
New
Jersey-American
Water
Co.,
Inc.
Series
2020
D
(AMT)
1.10%,
11/1/29(a)
2,000,000
1,758,169
3,266,553
New
Mexico
(
1
.9
%
)
New
Mexico
Mortgage
Finance
Authority,
JLG
NM
SAF
2023
LLLP
Series
2023
5.00%,
2/1/42(a)
325,000
326,343
Face
Amount
Value
State
of
New
Mexico,
Series
2021
5.00%,
3/1/25
$
2,000,000
$
2,030,874
2,357,217
New
York
(
10
.5
%
)
Long
Island
Power
Authority,
Series
2022
B
5.00%,
9/1/52(a)
2,000,000
2,097,657
Metropolitan
Transportation
Authority,
Series
A-2
5.00%,
11/15/24
1,360,000
1,370,948
Payroll
Mobility
Tax
Series
2024
A
5.37%,
12/19/24
1,000,000
999,600
New
York
City
Transitional
Finance
Authority,
Future
Tax
Secured
Series
2024
C
5.00%,
5/1/25
500,000
509,734
New
York
State
Dormitory
Authority,
State
of
New
York
Personal
Income
Tax
Series
2014
A
5.00%,
2/15/29
2,500,000
2,505,813
Port
Authority
of
New
York
&
New
Jersey,
Series
242
5.00%,
12/1/26
-
9/1/28
4,000,000
4,142,413
TSASC,
Inc.,
Series
A
5.00%,
6/1/24
1,475,000
1,478,930
13,105,095
North
Carolina
(
0
.4
%
)
North
Carolina
Municipal
Power
Agency
No.
1,
Series
A
5.00%,
1/1/27
530,000
545,665
Ohio
(
0
.4
%
)
County
of
Franklin
OH,
Trinity
Health
Corp.
Obligated
Group
Series
2013
OH
3.70%,
12/1/46(a)
500,000
499,761
Pennsylvania
(
8
.1
%
)
Commonwealth
of
Pennsylvania,
Series
2016
5.00%,
9/15/24
1,775,000
1,786,668
Pennsylvania
Economic
Development
Financing
Authority,
UPMC
Obligated
Group
Series
2014
A
5.00%,
2/1/25
750,000
752,762
Waste
Management
Obligated
Group
Series
2013
(AMT)
4.10%,
8/1/45(a)
500,000
499,795
Pennsylvania
Higher
Educational
Facilities
Authority,
Series
AQ
5.00%,
6/15/24
-
6/15/24
1,440,000
1,443,456
Pennsylvania
Turnpike
Commission
Registration
Fee,
Series
2023
3.64%,
7/15/41(a)
2,000,000
2,001,121
Redevelopment
Authority
of
the
City
of
Philadelphia,
Series
A
5.00%,
4/15/27
2,000,000
2,029,359
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Short
Duration
Municipal
Income
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Municipal
Bonds
(97.7%)
(cont’d)
Pennsylvania
(8.1%)
(cont’d)
School
District
of
Philadelphia
(The),
Series
2024
A
5.00%,
6/28/24
$
1,670,000
$
1,673,599
10,186,760
Puerto
Rico
(
1
.9
%
)
Commonwealth
of
Puerto
Rico,
Series
2022
A-1
5.63%,
7/1/27
2,198,000
2,339,367
South
Carolina
(
1
.6
%
)
Greenville
County
School
District,
Series
2023
5.00%,
12/1/24
2,000,000
2,018,403
Texas
(
11
.0
%
)
City
of
San
Antonio
TX,
Series
2023
5.00%,
2/1/25
1,335,000
1,352,954
Series
2023
5.64%,
2/1/26
1,500,000
1,509,460
Cypress-Fairbanks
Independent
School
District,
Series
2023
A
5.00%,
2/15/26
1,000,000
1,035,216
Dallas
Fort
Worth
International
Airport,
Series
2023
B
(AMT)
5.00%,
11/1/25
-
11/1/27
2,500,000
2,601,493
Harris
County
Cultural
Education
Facilities
Finance
Corp.,
Memorial
Hermann
Health
System
Obligated
Group
Series
2022
A
5.00%,
7/1/29
880,000
965,178
Texas
Children's
Hospital
Obligated
Group
Series
2015-1
5.00%,
10/1/28
2,610,000
2,675,123
North
Texas
Tollway
Authority,
Tollway
System
Series
2023
A
5.00%,
1/1/27
1,000,000
1,052,228
San
Antonio
Water
System,
Series
2023
A
5.00%,
5/15/24
1,000,000
1,001,412
Texas
Municipal
Gas
Acquisition
and
Supply
Corp.
II,
Series
2012
C
4.38%,
9/15/27(a)
515,000
512,897
Texas
Water
Development
Board,
State
Water
Implementation
Revenue
Fund
for
Texas
Series
2023
A
5.00%,
10/15/25
1,000,000
1,027,777
13,733,738
Virginia
(
2
.4
%
)
City
of
Bristol
VA,
Series
2023
5.00%,
9/1/27
1,000,000
1,022,238
Virginia
Housing
Development
Authority,
Series
2023
E
4.10%,
10/1/27
2,000,000
2,005,883
3,028,121
Face
Amount
Value
Washington
(
4
.1
%
)
Port
of
Seattle,
Series
C
(AMT)
5.00%,
4/1/31
$
2,000,000
$
2,006,864
State
of
Washington,
Series
R-2018
D
5.00%,
8/1/25
2,070,000
2,116,808
Washington
State
Housing
Finance
Commission,
Ardea
Twg
LLLP
Series
2023
5.00%,
12/1/43(a)
1,000,000
1,025,119
5,148,791
Wisconsin
(
0
.4
%
)
Wisconsin
Housing
&
Economic
Development
Authority
Housing,
Series
2023
E
3.88%,
11/1/54(a)
500,000
498,263
Total
Fixed
Income
Securities
(Cost
$120,759,949)
121,861,856
Shares
Short-Term
Investments
(
1
.3
%
)
Investment
Company
(
1
.3
%
)
BlackRock
Liquidity
Funds
-
MuniCash
-
Institutional
Shares  3.48%
(Cost
$1,566,245)
1,566,089
1,566,245
Total
Investments
(99.0%)
(Cost
$122,326,194)
(b)
123,428,101
Other
Assets
in
Excess
of
Liabilities
(1.0%)
1,306,436
Net
Assets
(100.0%)
$124,734,537
(a)
Floating
or
variable
rate
securities:
The
rates
disclosed
are
as
of
March
31,
2024.
For
securities
based
on
a
published
reference
rate
and
spread,
the
reference
rate
and
spread
are
indicated
in
the
description
in
the
Portfolio
of
Investments.
Certain
variable
rate
securities
may
not
be
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.
These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description
in
the
Portfolio
of
Investments.
(b)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$122,326,194.
The
aggregate
gross
unrealized
appreciation
is
$1,137,907
and
the
aggregate
gross
unrealized
depreciation
is
$36,000,
resulting
in
net
unrealized
appreciation
of
$1,101,907.
AMT
Alternative
Minimum
Tax
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Short
Duration
Municipal
Income
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Summary
of
Investments
by
State
Classification  
Percentage
of
Total
Investments
Other*
45
.0‌
%
Illinois
13
.2‌
Texas
11
.1‌
New
York
10
.6‌
Pennsylvania
8
.3‌
Colorado
6
.6‌
Michigan
5
.2‌
Total
Investments
100
.0‌
%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Short
Duration
Municipal
Income
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
*
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$122,326,194)
$
123,428,101
Cash
409
Interest
Receivable
1,592,874
Prepaid
Expenses
102,266
Total
Assets
125,123,650
Liabilities:
Payable
for
Management
Fee
5,844
Payable
for
Dividends
to
Shareholders
383,269
Total
Liabilities
389,113
Net
Assets
$
124,734,537
Net
Assets
Consist
of:
Paid-in-Capital
$
123,859,810
Total
Distributable
Earnings
874,727
Net
Assets
$
124,734,537
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
2,502,962
Net
Asset
Value
Per
Share
$
49
.83
*
The
Fund
acquired
all
the
assets
and
liabilities
of
the
Morgan
Stanley
Institutional
Fund
Trust  -  Short
Duration
Municipal
Income
Portfolio
(“Predecessor
Fund”)
in
a
reorganization
that
occurred
as
of
the
close
of
business
on
March
22,
2024
(“Reorganization”).
The
Predecessor
Fund
ceased
operations
immediately
following
the
Reorganization.
As
a
result,
all
financial
information
prior
to
the
Reorganization,
reflects
the
Predecessor
Fund's
Class
IR
shares.
See
Notes
to
Financial
Statements
for
further
Information
on
the
Reorganization.
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Short
Duration
Municipal
Income
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Six
Months
Ended
March
31,
2024
*
Investment
Income:
Interest
from
Securities
of
Unaffiliated
Issuers
$
2,715,268
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
37,291
Total
Investment
Income
2,752,559
Expenses:
Management
Fee
(Note
B)
5,845
Advisory
Fees
(Note
B)
141,667
Administration
Fees
(Note
B)
56,667
Shareholder
Service
Fees
(Note
C)
58,954
Professional
Fees
114,387
Registration
Fees
65,746
Custodian
Fees
(Note
E)
6,008
Reorganization
Fees
110,000
Shareholder
Reporting
Fees
11,690
Transfer
Agency
Fees
(Note
D)
3,750
Trustees'
Fees
and
Expenses
2,708
Other
Expenses
21,822
Total
Expenses
599,244
Waiver
of
Advisory
Fees
(355,968)
Waiver
of
Shareholder
Services
Fee
Class
A
(40,825)
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(836)
Net
Expenses
201,615
Net
Investment
Income
2,550,944
Realized
Gain
(Loss):
Investments
Sold
(86,371)
Investments
in
Affiliates
1,988
Net
Realized
Loss
(84,383)
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
2,145,346
Net
Change
in
Unrealized
Appreciation
(Depreciation)
2,145,346
Net
Realized
Loss
and
Change
in
Unrealized
Appreciation
(Depreciation)
2,060,963
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
4,611,907
*
The
Fund
acquired
all
the
assets
and
liabilities
of
the
Morgan
Stanley
Institutional
Fund
Trust  -  Short
Duration
Municipal
Income
Portfolio
(“Predecessor
Fund”)
in
a
reorganization
that
occurred
as
of
the
close
of
business
on
March
22,
2024
(“Reorganization”).
The
Predecessor
Fund
ceased
operations
immediately
following
the
Reorganization.
As
a
result,
all
financial
information
prior
to
the
Reorganization,
reflects
the
Predecessor
Fund's
Class
IR
shares.
See
Notes
to
Financial
Statements
for
further
Information
on
the
Reorganization.
Semi-Annual
Report
March
31,
2024
Eaton
Vance
Short
Duration
Municipal
Income
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statements
of
Changes
in
Net
Assets
Six
Months
Ended
March
31,
2024
*
(unaudited)
Year
Ended
September
30,
2023
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
2,550,944
$
5,529,702
Net
Realized
Loss
(84,383)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
2,145,346
(1,028,000)
Net
Increase
in
Net
Assets
Resulting
from
Operations
4,611,907
4,501,702
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(3,099,121)
(4,987,541)
Total
Dividends
and
Distributions
to
Shareholders
(3,099,121)
(4,987,541)
Capital
Share
Transactions:
**
Subscribed
20,360,816
83,382,616
Distributions
Reinvested
2,715,831
2,451,909
Redeemed
(87,496,680)
(61,874,558)
Institutional
Class:
Subscribed
10,050,000
Distributions
Reinvested
264,003
Redeemed
(20,740,298)
Class
A:
Subscribed
78,312,976
Distributions
Reinvested
2,287,817
Redeemed
(53,772,652)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Capital
Share
Transactions
(64,420,033)
40,361,813
Total
Increase
(Decrease)
in
Net
Assets
(62,907,247)
39,875,974
Net
Assets:
Beginning
of
Period
187,641,784
147,765,810
End
of
Period
$
124,734,537
$
187,641,784
Capital
Share
Transactions:
**
Beginning
of
Period
3,804,619
14,779,784
Shares
Subscribed
410,018
8,338,426
Shares
Issued
on
Distributions
Reinvested
54,750
245,191
Shares
Redeemed
(1,766,425)
(6,187,336)
Institutional
Class:
Shares
Subscribed
1,005,001
Shares
Issued
on
Distributions
Reinvested
26,400
Shares
Redeemed
(2,074,030)
Class
A:
Shares
Subscribed
7,831,181
Shares
Issued
on
Distributions
Reinvested
228,782
Shares
Redeemed
(5,377,391)
Shares
Outstanding,
End
of
Period
Net
Increase
in
2,502,962
18,816,008
*
The
Fund
acquired
all
the
assets
and
liabilities
of
the
Morgan
Stanley
Institutional
Fund
Trust  -  Short
Duration
Municipal
Income
Portfolio
(“Predecessor
Fund”)
in
a
reorganization
that
occurred
as
of
the
close
of
business
on
March
22,
2024
(“Reorganization”).
The
Predecessor
Fund
ceased
operations
immediately
following
the
Reorganization.
As
a
result,
all
financial
information
prior
to
the
Reorganization,
reflects
the
Predecessor
Fund's
Class
IR
shares.
See
Notes
to
Financial
Statements
for
further
Information
on
the
Reorganization.
**
Reflects
the
reorganization
from
the
Morgan
Stanley
Institutional
Fund
Trust
-
Short
Duration
Municipal
Income
Portfolio
on
March
22,
2024
.
See
Notes
to
Financial
Statements.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Eaton
Vance
Short
Duration
Municipal
Income
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30
Period
from
December
19,
2018
(1)
to
September
30,
2019
2023
2022
2021
2020
Net
Asset
Value,
Beginning
of
Period
(2)
$49.36‌
$49.51‌
$49.51‌
$49.51‌
$49.51‌
$49.51‌
Income
(Loss)
from
Investment
Operations:
(2)
Net
Investment
Income
(3)
0.86‌
1.53‌
0.30‌
0.05‌
0.45‌
0.59‌
Net
Realized
and
Unrealized
Loss
(0.06‌)
(0.29‌)
—‌
—‌
—‌
—‌
Total
from
Investment
Operations
0.80‌
1.24‌
0.30‌
0.05‌
0.45‌
0.59‌
Distributions
from
and/or
in
Excess
of:
(2)
Net
Investment
Income
(0.33‌)
(1.39‌)
(0.30‌)
(0.05‌)
(0.45‌)
(0.59‌)
Net
Asset
Value,
End
of
Period
(2)
$49.83‌
$49.36‌
$49.51‌
$49.51‌
$49.51‌
$49.51‌
Total
Return
(4)(5)
3.07‌%
(
6
)
2.51‌%
0.61‌%
0.06‌%
0.91‌%
1.19‌%
(
6
)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
(7)
$124,735
$—
$—
$—
$—
$—
Net
Assets,
End
of
Period
(Thousands)
$124,735‌
$95,009‌
$71,284‌
$66,358‌
$118,335‌
$67,174‌
Ratio
of
Expenses
Before
Expense
Limitation
0.73%
(8)
0.43%
0.46%
0.40%
0.40%
0.52%
Ratio
of
Expenses
After
Expense
Limitation
0.24%
(8)(9)
0.15%
(9)
0.13%
(9)
0.13%
(9)
0.13%
(9)
0.13%
(9)
Ratio
of
Net
Investment
Income
3.45‌%
(
8
)(
9
)
3.09‌%
(
9
)
0.59‌%
(
9
)
0.07‌%
(
9
)
0.78‌%
(
9
)
1.49‌%
(
9
)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0.00‌%
(
8
)
(
10
)
0.00‌%
(
1
0
)
N/A‌
N/A‌
N/A‌
N/A‌
Portfolio
Turnover
Rate
N/A‌
(
1
1
)
N/A‌
(
1
1
)
N/A‌
(
1
1
)
N/A‌
(
1
1
)
N/A‌
(
1
1
)
N/A‌
(
1
1
)
(1)
Commencement
of
Operations.
(2)
Per
share
amounts
reflect
the
conversion
of
the
Morgan
Stanley
Institutional
Fund
Trust
-
Short
Duration
Municipal
Income
Portfolio
into
the
Fund
as
of
the
close
of
March
22,
2024.
(3)
Per
share
amount
is
based
on
average
shares
outstanding.
(4)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(5)
The
Predecessor
Fund
was
designated
as
the
accounting
survivor
in
the
Reorganization.
As
a
result,
the
Fund
assumed
the
Predecessor
Fund's
historical
performance
and
the
performance
information
reflects
that
of
the
Class
IR
shares
of
the
Predecessor
Fund.
(6)
Not
annualized.
(7)
The
Fund
acquired
all
the
assets
and
liabilities
of
the
Morgan
Stanley
Institutional
Fund
Trust
-
Short
Duration
Municipal
Income
Portfolio
(“Predecessor
Fund”)
in
a
reorganization
that
occurred
as
of
the
close
of
business
on
March
22,
2024
(“Reorganization”).
The
Predecessor
Fund
ceased
operations
immediately
following
the
Reorganization.
As
a
result,
all
financial
information
prior
to
the
Reorganization,
reflects
the
Predecessor
Fund's
Class
IR
shares.
See
Notes
to
Financial
Statements
for
further
Information
on
the
Reorganization.
(8)
Annualized.
(9)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(10)
Amount
is
less
than
0.005%.
(11)
During
the
reporting
period,
the
Fund
did
not
hold
any
long-term
investments
and
accordingly
portfolio
turnover
is
not
applicable.
13
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
“Trust”)
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
“Declaration
of
Trust”),
the
Trust is
authorized
to
establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Act”).
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
(“ASC”)
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Eaton
Vance
Short
Duration
Municipal
Income
ETF
 (the
“Fund”),
which
seeks
to
provide
current
income
exempt
from
regular
federal
income
tax.
The
Fund
is
diversified.  
On
March
22,
2024,
the
Fund
acquired
all
the
assets
and
liabilities
of
the Predecessor
Fund,
based
on
the
respective
valuations
as
of
the
close
of
business
on
March
22,
2024,
pursuant
to
a
Plan
of
Reorganization
approved
by
the
share-
holders
of
the
Predecessor
Fund
on
December
15,
2023
(the
“Reorganization”).
This
tax-free
acquisition
of
the
Predecessor
Fund
was
designated
as
the
accounting
survivor
in
the
Reorga-
nization.
As
a
result,
the
Fund
assumed
the
Predecessor
Fund's
accounting
and
financial
history.
The
net
assets
of
the
Prede-
cessor
Fund
before
the
Reorganization
were
$125,148,069
with
shares
outstanding
of
12,391,520, including
unrealized
appreciation
on
investments of
$1,206,820,
with
a
fair
val-
ue of
$123,548,378 and
cost
of
$122,341,558.
Immediately
after
the
Reorganization,
the
net
assets
of
the
Fund
were
$125,148,029
with
shares
outstanding
of
2,502,962.
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteris-
tics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
bro-
kers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable
brokers/dealers;
(2)
when
market
quotations
are
not
readily
available,
as
de-
fined
by
Rule
2a-5
under
the
Act,
including
circumstanc-
es
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
mar-
ket
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees;
(3)
investments
in
mutual
funds,
including
the
Morgan
Stan-
ley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
14
Morgan
Stanley
ETF
Trust
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
4.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
monthly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
5.
Security
Transactions
and Income:
 Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
income
at
fair
value.
Interest
income
is
recog-
nized
on
the
accrual
basis
(except
where
collection
is
in
doubt)
net
of
applicable
withholding
taxes.
Discounts
are
accreted
and
premiums
are
amortized
over
the
life
of
the
respective
securities.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.19% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
Prior
to
March
22,
2024, the
Predecessor
Fund
paid
the
Adviser
quarterly,
at
an
annual
rate
of
0.20%
of
the
average
daily
net
assets
of
the
Predecessor
Fund.
The
Adviser
has
agreed
to
reduce
its
fee
and/or
reimburse
the
Predecessor
Fund
so
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:
Fixed
Income
Securities
Municipal
Bonds
$
$
121,862
$
$
121,862
Short-Term
Investments
Investment
Company
1,566
1,566
Total
Assets
$1,566
$121,862
$—
$123,428
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
15
Morgan
Stanley
ETF
Trust
that
total
annual
Fund
operating
expenses,
excluding
certain
investment
related
expenses,
taxes,
interest
and
other
extraor-
dinary
expenses
(including
litigation),
will
not
exceed
0.25%
for
Class
IR
shares,
0.35%
for
Institutional
Class
shares
and
0.35%
for
Class
A
shares.
For
the
period
ended
March
31,
2024,
$355,968
of
advisory
fees
were
waived
by
the
Adviser
pursuant
to
this
arrangement.
In
addition
the
Adviser
served
as
the
Administrator
of
the
Predecessor
Fund
pursuant
to
an
Administration
Agreement
for
an
annual
fee
of
0.08%
of
the
Predecessor
Fund's
average
daily
net
assets.
C. Distribution
and
Shareholder
Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under
the
Act.
Under
the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
Prior
to
March
22,
2024,
Morgan
Stanley
Distribution,
Inc.
served
as
the
Predecessor
Fund's
Distributor
pursuant
to
a
Distribution
Agreement.
The
Predecessor
Fund
adopt-
ed
a
Shareholder
Services
Plan
with
respect
to Institutional
Class shares
pursuant
to
Rule
12b-1
under
the
Act.
Under
the
Shareholder
Services
Plan,
the
Predecessor Fund
pays
the
Distributor
a
shareholder
services
fee,
accrued
daily
and
paid
monthly,
at
an
annual
rate
of
0.10%
of
the
Predecessor
Fund’s
average
daily
net
assets
attributable
to
the
Institutional
Class
shares.
The
Predecessor
Fund
had
adopted
a
Shareholder
Ser-
vices
Plan
with
respect
to
the
Class
A
shares
pursuant
to
Rule
12b-1
under
the
Act.
Under
the
Shareholder
Services
Plan,
the
Predecessor
Fund
paid
the
Distributor
a
shareholder
services
fee,
accrued
daily
and
paid
monthly,
at
an
annual
rate
of
0.20%
of
the
Fund’s
average
daily
net
assets
attributable
to
the
Class
A
shares.
The
Distributor
had
agreed
to
waive
the
12b-1
fees
on
Class
A
shares
of
the
Predecessor
Fund
to
the
extent
it
exceeds
0.10%
of
the
average
daily
net
assets
of
such
shares
on
an
annualized
basis.
This
waiver
will
continue
for
at
least
one
year
or
until
such
time
as
the
Trustees
act
to
discontinue
all
or
a
portion
of
such
waiver
when
it
deems
such
action
is
appropriate.
For
the period
ended March
31,
2024,
this
waiver
amounted
to
$40,825.
.
D. Dividend
Disbursing
and
Transfer/Co-Transfer
Agent:
Prior
to
March
22,
2024,
the
Predecessor
Fund's
divi-
dend
disbursing
and
transfer
agent
was
SS&C
Global
Investor
&
Distribution
Solution,
Inc.
("SS&C
GIDS").
Pursuant
to
a
Transfer
Agency
Agreement,
the
Predecessor
Fund
paid
SS&C
GIDS
a
fee
based
on
the
number
of
classes,
accounts
and
transaction
relating
to
the
Predecessor
Fund.
Eaton
Vance
Management
(“EVM”),
an
affiliate
of
Morgan
Stanley,
provid-
ed
co-transfer
agency
and
related
services
to
the
Predecessor
Fund
pursuant
to
a
Co-Transfer
Agency
Services
Agreement.
For
the period
October 1,
2023
through March
22, 2024,
co-transfer
agency
fees
and
expenses
incurred
to
EVM,
includ-
ed
in
“Transfer
Agency
Fees”
in
the
Statement
of
Operations,
amounted
to
$3,750.
Effective
March
22,
2024,
JPMorgan
Chase
Bank N.A.
("JPMorgan")
serves
as
the
Transfer
Agent
of
the
Fund.
.
E.
Custodian
Fees:
Prior
to
March
22,
2024,
State
Street
Bank
and
Trust
Company
("State
Street")
served
as
custodi-
an
for
the
Predecessor
Fund in
accordance
with
a
Custodian
Agreement. Effective
March
22,
2024,
JPMorgan
serves
as
Custodian
and
Administrator
for
the
Fund
in
accordance
with
a
Custodian
and
Administration
Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
.
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 25,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
Foreside
Fund
Services,
LLC,
which
is the
Fund’s
Distrib-
utor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clear-
ing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corporation)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Par-
ticipant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
16
Morgan
Stanley
ETF
Trust
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statement
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Af-
filiates:
 The Predecessor
Fund
invested
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
— Tax-Exempt Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser.
Management
fees
paid
by
the
Predecessor
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the
management
fees
paid
by
the
Predecessor
Fund
due
to
its
investment
in
the
Liquidity
Fund.
For
the
six
months
ended
March
31,
2024,
management
fees
paid
were
reduced
by
$836
relating
to
the
Predecessor
Fund's
investment
in
the
Liquidity
Fund.
.
A
summary
of
the
Predecessor
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
six
months ended
March
31,
2024 were
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
The
tax
year
ended
September
30,
2023
remains
subject
to
examination
by
taxing
authorities.
The
tax
character
of
distributions
paid
may
differ
from
the
character
of
distributions
shown
for
GAAP
purposes
due
to
short-term
capital
gains
being
treated
as
ordinary
income
for
tax
purposes.
The
tax
character
of
distributions
paid
during
fiscal
year 2023
and
2022
was
as
follows: 
The
amount
and
character
of
income
and
gains
to
be
distrib-
uted
are
determined
in
accordance
with
income
tax
regulations
which
may
differ
from
GAAP.
These
book/tax
differences
are
either
considered
temporary
or
permanent
in
nature. 
Temporary
differences
are
attributable
to
differing
book
and
tax
treatments
for
the
timing
of
the
recognition
of
gains
(loss-
Affiliated
Investment
Company
Value
September
30,
2023
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
4,187
$
58,45
1
$
62,640
$
37
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
2
$
$
2023
Distributions
Paid
From:
Ordinary
Tax-Exempt
Income
Income
$258,561
$4,728,880
2022
Distributions
Paid
From:
Ordinary
Tax-Exempt
Income
Income
$133,209
$692,220
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
es)
on
certain
investment
transactions
and
the
timing
of
the
deductibility
of
certain
expenses. 
The
Fund
had
no
permanent
differences
causing
reclassifica-
tions
among
the
components
of
net
assets
for
the
year ended
September
30,
2023. 
At
September
30,
2023,
the
components
of
distributable
earn-
ings
for
the
Fund
on
a
tax
basis
were
as
follows: 
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following: 
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
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,
such
as
during
periods
of
market
stress,
and
no
other
authorized
participant
creates
or
redeems,
shares
may
trade
at
a
discount
to
NAV
and
possibly
face
trading
halts
and/
or
delisting.
Cash
Transactions
Risk:
Unlike
certain
ETFs,
the
Fund
may
effect
creations
and
redemptions
in
cash
or
partially
in
cash.
Therefore,
it
may
be
required
to
sell
portfolio
securities
and
subsequently
recognize
gains
on
such
sales
that
the
Fund
might
not
have
recognized
if
it
were
to
distribute
portfolio
securities
in-kind.
As
such,
investments
in
shares
may
be
less
tax-efficient
than
an
investment
in
an
ETF
that
distributes
portfolio
securities
entirely
in-kind. 
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
Buying
or
selling
shares
in
the
secondary
market
may
require
paying
brokerage
commissions
or
other
charges
imposed
by
brokers
as
determined
by
that
Undistributed
Undistributed
Ordinary
Long-Term
Income
Capital
Gain
$524,916
$–
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
18
Morgan
Stanley
ETF
Trust
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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. 
19
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
Morgan
Stanley
ETF
Trust
The
Board
considered
the
following
factors
at
the
time
of
approval
of
the
contracts
which
occurred
prior
to
commencement
of
operations.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
the
nature
and
extent
of
the
investment
advisory
and
portfolio
management
services
to
be
pro-
vided
by
the
Adviser
under
the
investment
management
agreement
(the
“Management
Agreement”),
including
portfolio
manage-
ment,
investment
research
and
equity
and
fixed
income
securities
trading.
The
Board
also
reviewed
and
considered
the
nature
and
extent
of
the
non-advisory
services
to
be
provided
by
the
Adviser
under
the
Management
Agreement,
including
operations,
com-
pliance,
business
management
and
planning,
legal
services
and
the
provision
of
supplies,
office
space
and
utilities
at
the
Adviser’s
expense.
The
Board
also
considered
the
Adviser’s
investment
in
personnel
and
infrastructure
that
benefits
the
Fund.
The
Board
also
considered
that
the
Adviser
serves
a
variety
of
other
investment
advisory
clients
and
has
experience
overseeing
service
providers.
The
Board
reviewed
and
considered
the
qualifications
of
the
portfolio
managers
and
other
key
personnel
of
the
Adviser
who
will
provide
the
advisory
services
to
the
Fund.
The
Board
determined
that
the
Adviser's
portfolio
managers
and
key
personnel
are
well
qualified
by
education
and/or
training
and
experience
to
perform
the
services
in
an
efficient
and
professional
manner.
The
Board
concluded
that
the
nature
and
extent
of
the
advisory
services
to
be
provided
were
necessary
and
appropriate
for
the
conduct
of
the
business
and
investment
activities
of
the
Fund
and
supported
its
decision
to
approve
the
Management
Agreement.
Performance,
Fees
and
Expenses
of
the
Fund
The
Board
considered
that
the
Adviser
plans
to
launch
the
Fund
with
the
assets
of
the
Morgan
Stanley
Institutional
Fund
Trust
Short
Duration
Municipal
Income
Portfolio
(the
“Acquired
Fund”).
The
Board
further
considered
that
although
the
Fund
had
not
yet
commenced
operations,
it
was
expected
that
it
would
adopt
the
Acquired
Fund’s
performance
track
record
as
the
accounting
survivor
to
the
Acquired
Fund.
The
Board
reviewed
the
unitary
management
fee
(the
“management
fee
rate”)
proposed
to
be
paid
by
the
Fund
under
the
Man-
agement
Agreement,
pursuant
to
which
the
Adviser
would
pay
substantially
all
of
the
operating
expenses
of
the
Fund,
subject
to
certain
exceptions.
The
Board
considered
the
benefits
of
a
unitary
fee
structure
and
considered
the
management
fee
rate
relative
to
comparable
funds
advised
by
the
Adviser
or
its
affiliates
(including
the
Acquired
Fund),
when
applicable,
and
compared
to
peers
as
determined
by
the
Adviser.
The
Board
reviewed
the
anticipated
total
expense
ratio
of
the
Fund,
which,
due
to
the
unitary
manage-
ment
fee
structure,
was
equal
to
the
proposed
management
fee
rate.
The
Board
also
considered
the
benefits
to
the
Acquired
Fund
shareholders
arising
from
the
unitary
management
fee
structure,
that
would
result
in
the
Fund
experiencing
a
lower
total
expense
ra-
tio
as
compared
to
the
Acquired
Fund.
The
Board
also
considered
that
the
fees
charged
by
the
Fund’s
other
service
providers
would
be
paid
by
the
Adviser
under
the
unitary
management
fee
structure.
The
Board
considered
that
the
Fund
requires
the
Adviser
to
develop
processes,
invest
in
additional
resources
and
incur
additional
risks
to
successfully
manage
the
Fund
and
concluded
that
the
proposed
management
fee
rate
and
anticipated
total
expense
ratio
would
be
competitive
with
its
peer
group
averages.
Economies
of
Scale
The
Board
considered
the
growth
prospects
of
the
Fund
and
the
proposed
unitary
management
fee
schedule,
which
does
not
in-
clude
breakpoints.
The
Board
considered
that
the
unitary
management
fee
rate
was
set
at
a
level
to
anticipate
economies
of
scale
at
lower
asset
levels
before
economies
of
scale
are
achieved
(if
ever).
The
Board
also
considered
that
the
unitary
management
fee
struc-
ture
inherently
reflects
certain
economies
of
scale
because
the
management
fee
rate
is
fixed
at
a
competitive
level
over
the
contract
period
and
therefore
the
management
fee
rate
paid
by
the
Fund
will
not
increase
in
the
future
even
if
the
Fund’s
operating
costs
rise
and
assets
remain
flat
or
decrease.
The
Board
also
considered
that
increases
in
the
Fund’s
assets
would
not
lead
to
a
reduction
to
the
unitary
management
fee
rate
paid
by
the
Fund
in
the
future
even
if
economies
of
scale
were
achieved.
The
Board
considered
that
the
Fund’s
potential
growth
was
uncertain
and
concluded
that
it
would
be
premature
to
consider
economies
of
scale
as
a
factor
in
approving
the
Management
Agreement
at
the
present
time.
Profitability
of
the
Adviser
and
Affiliates
Since
the
Fund
had
not
begun
operations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
this
was
not
a
factor
that
needed
to
be
considered
at
the
present
time.
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
(cont’d)
20
Morgan
Stanley
ETF
Trust
Other
Benefits
of
the
Relationship
The
Board
considered
other
direct
and
indirect
benefits
to
the
Adviser
and/or
its
affiliates
to
be
derived
from
their
relationship
with
the
Fund
and
other
funds
advised
by
the
Adviser.
These
benefits
may
include,
among
other
things,
fees
for
trading,
distribution
and/or
shareholder
servicing
and
for
transaction
processing
and
reporting
platforms
used
by
securities
lending
agents,
and
research
received
by
the
Adviser
generated
from
commission
dollars
spent
on
funds’
portfolio
trading.
Since
the
Fund
had
not
begun
oper-
ations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
these
benefits
were
not
a
factor
that
needed
to
be
consid-
ered
at
the
present
time.
Resources
of
the
Adviser
and
Historical
Relationship
Between
the
Fund
and
the
Adviser
The
Board
considered
whether
the
Adviser
is
financially
sound
and
has
the
resources
necessary
to
perform
its
obligations
under
the
Management
Agreement.
The
Board
also
reviewed
and
considered
the
organizational
structure
of
the
Adviser,
the
policies
and
procedures
formulated
and
adopted
by
the
Adviser
for
managing
the
Fund’s
operations
and
the
Board’s
confidence
in
the
compe-
tence
and
integrity
of
the
senior
managers
and
key
personnel
of
the
Adviser.
The
Board
concluded
that
the
Adviser
has
the
financial
resources
necessary
to
fulfill
its
obligations
under
the
Management
Agreement
and
that
it
is
beneficial
for
the
Fund
to
enter
into
this
relationship
with
the
Adviser.
Other
Factors
and
Current
Trends
The
Board
considered
the
controls
and
procedures
adopted
and
implemented
by
the
Adviser
and
monitored
by
the
Fund’s
Chief
Compliance
Officer
and
concluded
that
the
conduct
of
business
by
the
Adviser
indicates
a
good
faith
effort
on
its
part
to
adhere
to
high
ethical
standards
in
the
conduct
of
the
Fund’s
business.
General
Conclusion
After
considering
and
weighing
all
of
the
above
factors,
with
various
written
materials
and
verbal
information
presented
by
the
Ad-
viser,
the
Board
concluded
that
it
would
be
in
the
best
interest
of
the
Fund
and
its
future
shareholders
to
approve
the
Management
Agreement,
which
will
remain
in
effect
for
two
years
and
thereafter
must
be
approved
annually
by
the
Board
of
the
Fund
if
it
is
to
continue
in
effect.
In
reaching
this
conclusion
the
Board
did
not
give
particular
weight
to
any
single
piece
of
information
or
factor
referenced
above.
It
is
possible
that
individual
Board
members
may
have
weighed
these
factors,
and
the
information
presented,
differently
in
reaching
their
individual
decisions
to
approve
the
Management
Agreement.
21
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program*
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
*
The
Fund
commenced
operations
subsequent
to
the
period
covered
by
the
report,
which
applied
to
other
funds
of
the
Trust
during
that
period.
However,
during
the
period
ended
March
31,
2024,
the
Program
applied
to
the
Fund.
22
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
A
copy
of
the
Proxy
Policy,
as
well
as
the
Trust’s
most
recent
proxy
voting
record
for
the
12-month
period
ended
June
30,
as
filed
with
the
SEC,
are
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
is
also
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
23
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
24
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
25
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
26
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
EVSDMIETFSAN
6598773
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2023
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Eaton
Vance
Total
Return
Bond
ETF
NYSE
:
EVTR
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
13
Statement
of
Operations
....................................................................................
14
Statements
of
Changes
in
Net
Assets
.......................................................................
15
Financial
Highlights
.........................................................................................
17
Notes
to
Financial
Statements
...............................................................................
18
Investment
Advisory
Agreement
Approval
....................................................................
29
Liquidity
Risk
Management
Program
.........................................................................
31
Important
Notices
..........................................................................................
32
U.S.
Customer
Privacy
Notice
...............................................................................
33
Trustees
and
Officers
Information
...........................................................................
36
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Eaton
Vance
Total
Return
Bond
ETF (the
“Fund”)
performed
during
the
latest
six
months
period
ended
March
31,
2024.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
(unaudited)
Eaton
Vance
Total
Return
Bond
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
six-month
period
ended
March
31,
2024 and
held
for
the
entire
six-month
period.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(
10/1/23
)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Eaton
Vance
Total
Return
Bond
ETF
$1,000.00
$1,071.60
$1,023.00
$2.07
$2.02
0.40%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
183/366
(to
reflect
the
most
recent
one-half
year
period).
**
Annualized.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Eaton
Vance
Total
Return
Bond
ETF
Morgan
Stanley
ETF
Trust
*
Cumulative
return
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.morganstanley.com/im.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares. Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Bloomberg
U.S.
Universal
Index
(1)
and
the
Bloomberg
U.S.
Aggregate
Index
(2)
Period
Ended
March
31,
2024
Total
Returns
(3)
Average
Annual
Six
Months
*
One
Year
Five
Years
Ten
Years
Eaton
Vance
Total
Return
Bond
ETF
NAV
7.16%
3.77%
1.12%
3.11%
Eaton
Vance
Total
Return
Bond
ETF
-
Market
Price
6.95%
3.56%
1.08%
3.09%
Bloomberg
U.S.
Universal
Index
6.33%
2.67%
0.69%
1.83%
Bloomberg
U.S.
Aggregate
Index
5.99%
1.70%
0.36%
1.54%
(1)
The
Bloomberg
U.S.
Universal
Index
represents
the
union
of
the
US
Aggregate
Index,
US
Corporate
High
Yield
Index,
Investment
Grade
144A
Index,
Eurodollar
Index,
US
Emerging
Markets
Index,
and
the
non-Employee
Retirement
Income
Security
Act
of
1974
(non-ERISA)
eligible
portion
of
the
CMBS
Index.
The
index
covers
U.S.
dollar-denominated,
taxable
bonds
that
are
rated
either
investment
grade
or
high-yield.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
The
Fund’s
primary
benchmark
index
was
changed
from
the
Bloomberg
U.S.
Aggregate
Index
to
the
Bloomberg
U.S.
Universal
Index
to
comply
with
the
regulation
that
requires
the
Fund’s
primary
benchmark
to
represent
the
overall
applicable
market.
(2)
The
Bloomberg
U.S.
Aggregate
Index
tracks
the
performance
of
U.S.
government
agency
and
Treasury
securities,
investment-grade
corporate
debt
securities,
agency
mortgage-backed
securities,
asset-backed
securities
and
commercial
mortgage-backed
securities.
The
Index
is
unmanaged
and
its
return
do
not
include
any
sales
charges
or
fees.
Such
cost
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
(3)
On
March
22,
2024,
Morgan
Stanley
Institutional
Fund
Trust
-
Core
Plus
Fixed
Income
Portfolio
(“Predecessor
Fund”),
which
operated
as
a
mutual
fund,
was
reorganized
into
the
Fund
(“Reorganization”).
The
Predecessor
Fund's
investment
objective
was
identical
to
the
Fund's
and
the
Predecessor
Fund
was
managed
in
a
manner
that,
in
all
material
respects,
complied
with
the
investment
guidelines
and
restrictions
of
the
Fund.
The
Predecessor
Fund
was
designated
as
the
accounting
survivor
in
the
Reorganization.
As
a
result,
the
Fund
assumed
the
Predecessor
Fund's
historical
performance
and
the
performance
information
shown
above
reflects
that
of
the
Class
I
shares
of
the
Predecessor
Fund,
which
had
a
different
fee
structure
than
the
Fund.
The
performance
of
the
Predecessor
Fund
has
not
been
restated
to
reflect
the
annual
operating
expenses
of
the
Fund,
which
were
lower
than
those
of
the
Predecessor
Fund.
Past
performance
may
have
been
different
if
the
Fund's
current
fee
structure
had
been
in
place
during
the
period.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Eaton
Vance
Total
Return
Bond
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Fixed
Income
Securities
(112.1%)
Asset-Backed
Securities
(
17.2%
)
AASET
US
Ltd.,
2018-2A
4.45%,
11/18/38(a)
$
1,283,838‌
$
1,135,424‌
ACHV
ABS
Trust,
2023-3PL
7.17%,
8/19/30(a)
200,000‌
201,062‌
Allegro
CLO
XI
Ltd.,
2019-2A
CME
Term
SOFR
3
Month
+
1.65%,
6.96%,
1/19/33(a)(b)
2,150,000‌
2,151,279‌
American
Homes
4
Rent
Trust,
2015-SFR2
6.07%,
10/17/52(a)
1,001,000‌
997,386‌
Aqua
Finance
Trust,
2019-A
3.47%,
7/16/40(a)
636,820‌
593,149‌
BCMSC
Trust,
1998-C
7.51%,
1/15/29(b)
1,012,940‌
980,602‌
Blackbird
Capital
II
Aircraft
Lease
Ltd.,
2021-1A
2.44%,
7/15/46(a)
1,172,840‌
1,034,033‌
CFMT
LLC,
2022-HB9
3.25%,
9/25/37(a)(b)
1,840,000‌
1,562,187‌
Cologix
Data
Centers
US
Issuer
LLC,
2021-1A
3.30%,
12/26/51(a)
2,125,000‌
1,933,964‌
Conn's
Receivables
Funding
LLC,
2022-A
9.52%,
12/15/26(a)
753,708‌
755,828‌
2023-A
10.00%,
1/17/28(a)
370,000‌
373,341‌
ContiMortgage
Home
Equity
Loan
Trust,
1995-2
8.10%,
8/15/25
17,335‌
13,737‌
Dell
Equipment
Finance
Trust,
2023-3
5.93%,
4/23/29(a)
675,000‌
683,510‌
ELFI
Graduate
Loan
Program
LLC,
2022-A
4.51%,
8/26/47(a)
1,323,350‌
1,266,284‌
Falcon
Aerospace
Ltd.,
2019-1
3.60%,
9/15/39(a)
1,276,356‌
1,167,866‌
FirstKey
Homes
Trust,
2021-SFR2
3.41%,
9/17/38(a)
1,000,000‌
882,578‌
2021-SFR3
3.98%,
12/17/38(a)
1,000,000‌
887,283‌
FMC
GMSR
Issuer
Trust,
2022-GT2
7.90%,
7/25/27(a)
2,675,000‌
2,707,254‌
FortiFi,
2023-1A
6.23%,
9/20/59(a)
2,871,924‌
2,802,251‌
Face
Amount
Value
GAIA
Aviation
Ltd.,
2019-1
7.00%,
12/15/44(a)(c)
$
1,623,017‌
$
908,889‌
GCI
Funding
I
LLC,
2020-1
2.82%,
10/18/45(a)
599,644‌
549,166‌
Golub
Capital
Partners
ABS
Funding
Ltd.,
2020-1A
3.21%,
1/22/29(a)
1,832,543‌
1,765,769‌
2021-1A
2.77%,
4/20/29(a)
757,094‌
717,404‌
Goodgreen
Trust,
2020-1A
5.53%,
4/15/55(a)
1,588,264‌
1,249,384‌
2021-1A
5.74%,
10/15/56(a)
2,282,339‌
1,797,558‌
Helios
Issuer
LLC,
2023-GRID1
5.75%,
12/20/50(a)
488,358‌
496,789‌
JOL
Air
Ltd.,
2019-1
4.95%,
4/15/44(a)
216,061‌
177,183‌
Lunar
Aircraft
Ltd.,
2020-1A
3.38%,
2/15/45(a)
315,679‌
291,592‌
MACH
1
Cayman
Ltd.,
2019-1
3.47%,
10/15/39(a)
654,757‌
592,642‌
MAPS
Ltd.,
2018-1A
4.21%,
5/15/43(a)
120,273‌
111,059‌
Marlette
Funding
Trust,
2023-3A
6.71%,
9/15/33(a)
2,300,000‌
2,321,141‌
METAL
LLC,
2017-1
4.58%,
10/15/42(a)
510,641‌
324,349‌
Mosaic
Solar
Loan
Trust,
2020-1A
2.10%,
4/20/46(a)
467,744‌
406,144‌
Newtek
Small
Business
Loan
Trust,
2018-1
US
Prime
Rate
-
0.55%,
7.95%,
2/25/44(a)(b)
154,862‌
153,757‌
2023-1
US
Prime
Rate
-
0.50%,
8.00%,
7/25/50(a)(b)
929,930‌
928,529‌
Oscar
US
Funding
XVI
LLC,
2024-1A
5.48%,
2/10/27(a)
2,365,000‌
2,363,291‌
PMC
PLS
ESR
Issuer
LLC,
2022-PLS1
5.11%,
2/25/27(a)(c)
1,483,746‌
1,446,572‌
PMT
Issuer
Trust-FMSR,
2021-FT1
CME
Term
SOFR
1
Month
+
3.11%,
8.44%,
3/25/26(a)(b)
3,900,000‌
3,949,091‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Total
Return
Bond
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Asset-Backed
Securities
(17.2%)
(cont’d)
2022-FT1
SOFR30A
+
4.19%,
9.51%,
6/25/27(a)(b)
$
2,700,000‌
$
2,739,490‌
PRET
LLC,
2021-NPL6
2.49%,
7/25/51(a)(c)
785,253‌
767,871‌
Progress
Residential,
2021-SFR4
2.31%,
5/17/38(a)
650,000‌
597,915‌
PRPM
LLC,
2022-3
5.56%,
6/25/27(a)(c)
1,990,943‌
1,967,312‌
Raptor
Aircraft
Finance
I
LLC,
2019-1
4.21%,
8/23/44(a)
1,919,755‌
1,582,722‌
ReadyCap
Lending
Small
Business
Loan
Trust,
2019-2
US
Prime
Rate
-
0.50%,
8.00%,
12/27/44(a)(b)
212,510‌
212,788‌
Republic
Finance
Issuance
Trust,
2020-A
3.54%,
11/20/30(a)
1,385,000‌
1,350,700‌
Retained
Vantage
Data
Centers
Issuer
LLC,
2023-1A
5.00%,
9/15/48(a)
2,050,000‌
1,978,631‌
SERVPRO
Master
Issuer
LLC,
2024-1A
6.17%,
1/25/54(a)
630,000‌
638,816‌
Stanwich
Mortgage
Loan
Co.
LLC,
2021-NPB1
2.73%,
10/16/26(a)(c)
1,676,228‌
1,629,003‌
Start
II
Ltd.,
2019-1
4.09%,
3/15/44(a)
234,951‌
217,615‌
Start
Ltd.,
2018-1
4.09%,
5/15/43(a)
2,215,084‌
2,039,965‌
Sunbird
Engine
Finance
LLC,
2020-1A
3.67%,
2/15/45(a)
771,829‌
699,581‌
VOLT
XCIII
LLC,
2021-NPL2
4.89%,
2/27/51(a)(c)
1,214,480‌
1,181,861‌
VOLT
XCIV
LLC,
2021-NPL3
5.24%,
2/27/51(a)(c)
1,478,449‌
1,447,755‌
Willis
Engine
Structured
Trust
VII,
2023-A
8.00%,
10/15/48(a)
711,572‌
747,177‌
62,478,529
Collateralized
Mortgage
Obligations
Agency
Collateral
Series  
(
18.1%
)
FHLMC
Gold
Pool,
30
Year
3.50%,
1/1/44
-
2/1/45
694,388‌
636,303‌
4.00%,
6/1/44
-
1/1/48
275,110‌
260,523‌
6.00%,
10/1/36
-
8/1/38
34,946‌
36,389‌
6.50%,
12/1/25
-
8/1/33
42,613‌
44,268‌
7.00%,
6/1/28
-
11/1/31
8,231‌
8,487‌
Face
Amount
Value
FHLMC
Gold
Pool,
Other
3.50%,
4/1/49
-
8/1/49
$
174,800‌
$
155,702‌
4.00%,
10/1/49
-
11/1/49
141,262‌
130,650‌
5.41%,
7/1/37
-
8/1/37
9,011‌
9,144‌
5.44%,
1/1/37
-
2/1/38
37,516‌
38,299‌
5.46%,
8/1/37
-
1/1/38
25,995‌
26,604‌
5.50%,
8/1/37
-
11/1/37
37,902‌
39,003‌
5.62%,
12/1/36
-
8/1/37
36,230‌
37,272‌
FNMA,
30
Year
3.50%,
2/1/48
-
5/1/48
850,893‌
775,064‌
5.62%,
12/1/36
16,312‌
16,763‌
FNMA,
Other
3.50%,
1/1/48
-
1/1/50
1,075,234‌
962,285‌
4.00%,
8/1/49
-
9/1/49
403,769‌
373,437‌
4.50%,
3/1/49
-
8/1/49
378,759‌
359,030‌
GNMA
I,
30
Year
6.50%,
5/15/40
165,526‌
170,376‌
GNMA
II,
Other
4.50%,
5/20/49
-
7/20/49
147,084‌
140,386‌
GNMA
II,
Single
Family,
30
Year
3.50%,
11/20/40
-
7/20/49
704,655‌
651,372‌
4.00%,
8/20/41
-
11/20/49
1,856,116‌
1,754,142‌
4.50%,
4/20/49
23,138‌
22,380‌
5.00%,
12/20/48
19,293‌
18,879‌
UMBS
Pool,
30
Year
4.00%,
4/1/49
326,562‌
306,520‌
4.50%,
2/1/49
275,324‌
265,886‌
UMBS,
30
Year
3.50%,
8/1/45
-
3/1/49
767,626‌
699,763‌
4.00%,
11/1/41
-
3/1/49
1,901,239‌
1,807,186‌
4.50%,
3/1/41
-
11/1/44
529,177‌
518,184‌
5.00%,
3/1/41
74,124‌
74,759‌
5.50%,
6/1/35
-
1/1/37
25,492‌
26,120‌
6.50%,
4/1/24
-
1/1/34
312,743‌
322,542‌
7.00%,
5/1/28
-
12/1/33
45,430‌
47,252‌
9.50%,
4/1/30
3,990‌
4,017‌
UMBS,
Single
Family,
30
Year
4.00%,
4/25/54
2,350,000‌
2,176,871‌
4.50%,
4/25/54
18,800,000‌
17,907,735‌
5.00%,
4/25/54
35,800,000‌
34,952,546‌
65,776,139
Commercial
Mortgage-Backed
Securities
(
21.6%
)
Adjustable
Rate
Mortgage
Trust
5.70%,
6/25/35(b)
29,801‌
29,170‌
Ajax
Mortgage
Loan
Trust
1.70%,
5/25/59(a)(c)
1,208,477‌
1,103,767‌
Alternative
Loan
Trust
CME
Term
SOFR
1
Month
+
0.47%,
5.80%,
5/25/47(b)
63,437‌
57,227‌
Banc
of
America
Alternative
Loan
Trust
CME
Term
SOFR
1
Month
+
0.76%,
6.00%,
7/25/46(b)
87,131‌
65,547‌
6.36%,
10/25/36(c)
384,353‌
110,752‌
Banc
of
America
Funding
Trust
5.25%,
7/25/37
8,690‌
8,528‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Total
Return
Bond
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Commercial
Mortgage-Backed
Securities
(21.6%)
(cont’d)
BANK
2.92%,
12/15/53(b)
$
4,200,000‌
$
2,353,413‌
IO
0.84%,
10/17/52(b)
13,972,943‌
495,238‌
BBCMS
Mortgage
Trust
IO
0.46%,
12/15/55(b)
18,384,278‌
652,672‌
Bear
Stearns
ARM
Trust
5.05%,
2/25/34(b)
362,197‌
340,863‌
Benchmark
Mortgage
Trust
3.76%,
7/15/53(a)
2,000,000‌
1,859,359‌
IO
0.88%,
9/15/48(a)(b)
31,000,000‌
588,603‌
BF
Mortgage
Trust
CME
Term
SOFR
1
Month
+
2.00%,
7.32%,
12/15/35(a)(b)
2,500,000‌
2,202,850‌
BPR
Trust
CME
Term
SOFR
1
Month
+
3.00%,
8.33%,
5/15/39(a)(b)
2,320,000‌
2,338,296‌
BRAVO
Residential
Funding
Trust
2.00%,
5/25/59(a)(b)
1,382,826‌
1,253,734‌
Brean
Asset-Backed
Securities
Trust
1.40%,
10/25/63(a)(b)
2,087,008‌
1,795,775‌
1.75%,
10/25/61(a)(b)
1,473,362‌
1,319,179‌
BX
Commercial
Mortgage
Trust
CME
Term
SOFR
1
Month
+
2.28%,
7.61%,
6/15/40(a)(b)
2,050,000‌
2,061,311‌
BXP
Trust
CME
Term
SOFR
1
Month
+
3.05%,
8.37%,
11/15/34(a)(b)
1,150,000‌
829,145‌
Cascade
Funding
Mortgage
Trust
4.00%,
10/25/68(a)(b)
2,098,163‌
1,857,705‌
CFMT
LLC
3.75%,
4/25/25(a)(b)
2,650,000‌
2,516,037‌
ChaseFlex
Trust
6.00%,
2/25/37
591,855‌
233,198‌
Citigroup
Commercial
Mortgage
Trust
3.50%,
12/10/41(a)(b)
1,100,000‌
780,211‌
IO
0.71%,
11/10/48(b)
2,273,737‌
18,710‌
0.87%,
9/10/58(b)
4,092,719‌
35,557‌
COLT
Trust
1.67%,
9/25/61(a)(b)
1,194,932‌
1,041,416‌
Commercial
Mortgage
Trust
3.40%,
8/15/57(a)(b)
1,400,000‌
1,342,591‌
IO
0.64%,
10/10/47(b)
2,330,897‌
1,955‌
0.87%,
7/15/47(b)
1,405,287‌
114‌
CSMC
Trust
CME
Term
SOFR
1
Month
+
4.08%,
9.41%,
4/15/26(a)(b)
2,590,297‌
2,553,176‌
Extended
Stay
America
Trust
CME
Term
SOFR
1
Month
+
2.36%,
7.69%,
7/15/38(a)(b)
1,823,940‌
1,826,501‌
Face
Amount
Value
FHLMC,
Multifamily
Structured
Pass-Through
Certificates
IO
REMIC
2.63%,
1/25/49(b)
$
17,200,000‌
$
2,406,190‌
2.63%,
1/25/49(b)
4,091,469‌
550,491‌
2.65%,
2/25/49(b)
9,522,157‌
1,348,573‌
2.74%,
8/25/48(b)
5,484,002‌
725,600‌
3.07%,
11/25/36(b)
4,400,000‌
1,110,399‌
3.21%,
5/25/32(b)
11,220,034‌
2,180,047‌
FHLMC,
REMIC
IO
REMIC
SOFR30A
+
5.89%,
0.57%,
11/15/43(b)
358,945‌
24,991‌
FNMA,
REMIC
7.00%,
9/25/32
74,723‌
77,145‌
IO
REMIC
8.00%,
9/18/27
15,922‌
1,493‌
FNMA,
Strips
IO
REMIC
6.50%,
9/25/29
16,548‌
1,736‌
6.50%,
9/25/29
7,016‌
671‌
6.50%,
9/25/29
11,257‌
1,011‌
6.50%,
12/25/29
15,995‌
1,591‌
6.50%,
12/25/29
7,192‌
684‌
6.50%,
12/25/29
10,715‌
1,020‌
6.50%,
12/25/29
14,607‌
1,285‌
8.50%,
10/25/25
1,327‌
25‌
FREMF
Mortgage
Trust
SOFR30A
+
4.46%,
9.78%,
12/25/26(a)(b)
60,721‌
59,157‌
SOFR30A
+
5.36%,
10.68%,
7/25/26(a)(b)
44,850‌
41,982‌
FS
Commercial
Mortgage
Trust
7.07%,
11/10/39(a)
1,775,000‌
1,854,276‌
GNMA
IO
REMIC
5.00%,
2/16/41
75,155‌
14,600‌
GS
Mortgage
Securities
Trust
IO
0.67%,
9/10/47(b)
3,997,717‌
2,510‌
1.19%,
10/10/48(b)
4,376,509‌
58,335‌
Headlands
Residential
LLC
2.49%,
9/25/26(a)(b)
2,956,017‌
2,820,136‌
J.P.
Morgan
Chase
Commercial
Mortgage
Securities
Trust
IO
0.46%,
4/15/46(b)
6,956,250‌
19,306‌
0.57%,
12/15/49(b)
3,529,937‌
40,448‌
0.59%,
7/15/47(b)
1,383,038‌
587‌
J.P.
Morgan
Mortgage
Trust
4.63%,
6/25/37(b)
48,055‌
39,171‌
Jackson
Park
Trust
3.24%,
10/14/39(a)(b)
1,700,000‌
1,389,218‌
JPMBB
Commercial
Mortgage
Securities
Trust
4.66%,
4/15/47(a)(b)
775,000‌
760,884‌
IO
0.86%,
8/15/47(b)
1,827,926‌
1,220‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Total
Return
Bond
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Commercial
Mortgage-Backed
Securities
(21.6%)
(cont’d)
Lehman
Mortgage
Trust
6.50%,
9/25/37
$
623,320‌
$
206,097‌
LHOME
Mortgage
Trust
8.00%,
6/25/28(a)(c)
425,000‌
432,802‌
MF1X
CME
Term
SOFR
1
Month
+
2.82%,
8.15%,
12/15/34(a)(b)
4,350,000‌
4,143,982‌
MFT
Mortgage
Trust
3.28%,
8/10/40(a)(b)
1,000,000‌
621,233‌
MFT
Trust
3.48%,
2/10/42(a)(b)
800,000‌
425,533‌
MKT
Mortgage
Trust
2.94%,
2/12/40(a)(b)
1,000,000‌
463,010‌
Natixis
Commercial
Mortgage
Securities
Trust
4.32%,
1/15/43(a)(b)
800,000‌
649,594‌
CME
Term
SOFR
1
Month
+
2.28%,
7.61%,
7/15/36(a)(b)
2,300,000‌
1,959,833‌
OBX
Trust
3.50%,
2/25/60(a)(b)
339,333‌
298,108‌
Olympic
Tower
Mortgage
Trust
3.57%,
5/10/39(a)
2,900,000‌
2,526,204‌
ORL
Trust
CME
Term
SOFR
1
Month
+
2.35%,
7.68%,
10/19/36(a)(b)
850,000‌
856,375‌
Seasoned
Credit
Risk
Transfer
Trust
3.00%,
9/25/55
892,102‌
765,395‌
3.00%,
8/25/57
645,049‌
552,297‌
3.00%,
3/25/58
878,241‌
752,915‌
4.25%,
8/25/59(a)(b)
2,700,000‌
2,420,037‌
4.25%,
5/25/60(a)(b)
3,100,000‌
2,776,092‌
4.25%,
11/25/60(a)(b)
750,000‌
675,236‌
4.75%,
7/25/56(a)(b)
1,008,000‌
949,265‌
4.75%,
6/25/57(a)(b)
340,241‌
323,942‌
4.75%,
10/25/58(b)
1,300,000‌
1,219,435‌
SG
Commercial
Mortgage
Securities
Trust
3.73%,
3/15/37(a)(b)
1,900,000‌
1,716,979‌
SLG
Office
Trust
IO
0.26%,
7/15/41(a)(b)
34,800,000‌
504,750‌
Taubman
Centers
Commercial
Mortgage
Trust
CME
Term
SOFR
1
Month
+
2.19%,
7.51%,
5/15/37(a)(b)
2,300,000‌
2,328,347‌
TYSN
Mortgage
Trust
6.58%,
12/10/33(a)(b)
1,717,000‌
1,802,967‌
VMC
Finance
LLC
CME
Term
SOFR
1
Month
+
1.76%,
7.09%,
1/18/37(a)(b)
1,434,186‌
1,418,310‌
WFRBS
Commercial
Mortgage
Trust
3.99%,
5/15/45(a)(b)
404,692‌
358,187‌
78,354,307
Corporate
Bonds
(
34.3%
)
Automobiles
(1.5%)
Ford
Motor
Co.
3.25%,
2/12/32
1,875,000‌
1,560,691‌
Face
Amount
Value
Hyundai
Capital
America
6.50%,
1/16/29(a)
$
3,670,000‌
$
3,852,192‌
5,412,883
Banks
(14.3%)
Banco
de
Credito
e
Inversiones
SA
2.88%,
10/14/31(a)
1,660,000‌
1,419,338‌
Banco
Santander
SA
4.18%,
3/24/28(b)
1,400,000‌
1,349,933‌
5.54%,
3/14/30(b)
1,200,000‌
1,200,311‌
Bank
Hapoalim
BM
3.26%,
1/21/32(a)(b)
2,075,000‌
1,867,355‌
Bank
of
America
Corp.
5.47%,
1/23/35(b)
10,798,000‌
10,872,475‌
Bank
of
Ireland
Group
plc
2.03%,
9/30/27(a)(b)
1,425,000‌
1,304,144‌
Barclays
plc
5.69%,
3/12/30(b)
1,050,000‌
1,055,815‌
BBVA
Bancomer
SA
8.13%,
1/8/39(a)(b)
1,697,000‌
1,759,273‌
BNP
Paribas
SA
5.18%,
1/9/30(a)(b)
737,000‌
737,381‌
BPCE
SA
5.15%,
7/21/24(a)
2,750,000‌
2,738,721‌
CaixaBank
SA
6.84%,
9/13/34(a)(b)
1,072,000‌
1,146,590‌
Credit
Agricole
SA
6.25%,
1/10/35(a)(b)
1,676,000‌
1,704,717‌
6.32%,
10/3/29(a)(b)
800,000‌
829,784‌
Grupo
Aval
Ltd.
4.38%,
2/4/30(a)
561,000‌
473,608‌
JPMorgan
Chase
&
Co.
5.34%,
1/23/35(b)
4,637,000‌
4,656,881‌
Nordea
Bank
Abp
5.38%,
9/22/27(a)
1,200,000‌
1,208,770‌
Oversea-Chinese
Banking
Corp.
Ltd.
1.83%,
9/10/30(a)(b)
970,000‌
917,182‌
Societe
Generale
SA
2.63%,
1/22/25(a)
1,625,000‌
1,583,977‌
5.63%,
1/19/30(a)(b)
1,529,000‌
1,523,336‌
6.07%,
1/19/35(a)(b)
1,213,000‌
1,221,081‌
Toronto-Dominion
Bank
(The)
8.13%,
10/31/82(b)
1,625,000‌
1,708,449‌
Truist
Financial
Corp.
5.44%,
1/24/30(b)
2,988,000‌
2,985,352‌
7.16%,
10/30/29(b)
1,375,000‌
1,466,770‌
U.S.
Bancorp
5.68%,
1/23/35(b)
3,342,000‌
3,375,926‌
United
Overseas
Bank
Ltd.
3.86%,
10/7/32(a)(b)
2,950,000‌
2,801,940‌
51,909,109
Biotechnology
(0.3%)
AbbVie,
Inc.
5.50%,
3/15/64
1,160,000‌
1,193,934‌
Capital
Markets
(2.5%)
Charles
Schwab
Corp.
(The)
5.85%,
5/19/34(b)
1,370,000‌
1,403,829‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Total
Return
Bond
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(34.3%)
(cont’d)
Deutsche
Bank
AG
7.15%,
7/13/27(b)
$
1,800,000‌
$
1,850,512‌
HAT
Holdings
I
LLC
3.38%,
6/15/26(a)
1,470,000‌
1,386,071‌
LPL
Holdings,
Inc.
4.00%,
3/15/29(a)
55,000‌
50,599‌
6.75%,
11/17/28
570,000‌
597,249‌
Macquarie
Group
Ltd.
6.26%,
12/7/34(a)(b)
1,065,000‌
1,115,345‌
TPG
Operating
Group
II
LP
5.88%,
3/5/34
1,040,000‌
1,055,259‌
UBS
Group
AG
9.02%,
11/15/33(a)(b)
1,450,000‌
1,760,720‌
9,219,584
Chemicals
(0.9%)
Celanese
US
Holdings
LLC
6.17%,
7/15/27
1,150,000‌
1,171,792‌
NOVA
Chemicals
Corp.
4.25%,
5/15/29(a)
1,510,000‌
1,294,589‌
Syngenta
Finance
NV
4.89%,
4/24/25(a)
975,000‌
961,638‌
3,428,019
Consumer
Finance
(1.2%)
Ford
Motor
Credit
Co.
LLC
7.12%,
11/7/33
1,275,000‌
1,372,753‌
7.20%,
6/10/30
472,000‌
501,287‌
7.35%,
3/6/30
1,002,000‌
1,068,937‌
General
Motors
Financial
Co.,
Inc.
5.80%,
1/7/29
1,297,000‌
1,320,398‌
4,263,375
Containers
&
Packaging
(0.6%)
Smurfit
Kappa
Treasury
ULC
5.78%,
4/3/54(a)
835,000‌
846,989‌
Trivium
Packaging
Finance
BV
5.50%,
8/15/26(a)(c)
1,381,000‌
1,362,857‌
2,209,846
Diversified
REITs
(0.3%)
VICI
Properties
LP
5.75%,
4/1/34
1,065,000‌
1,055,900‌
Diversified
Telecommunication
Services
(0.4%)
AT&T,
Inc.
3.55%,
9/15/55
2,100,000‌
1,469,563‌
3.65%,
6/1/51
135,000‌
99,198‌
1,568,761
Electric
Utilities
(0.4%)
Pacific
Gas
and
Electric
Co.
4.95%,
7/1/50
1,625,000‌
1,399,206‌
Entertainment
(0.6%)
Warnermedia
Holdings,
Inc.
5.14%,
3/15/52
1,628,000‌
1,352,291‌
5.39%,
3/15/62
805,000‌
668,685‌
2,020,976
Face
Amount
Value
Financial
Services
(1.1%)
Nationwide
Building
Society
4.30%,
3/8/29(a)(b)
$
1,550,000‌
$
1,484,294‌
Radian
Group,
Inc.
6.20%,
5/15/29
1,037,000‌
1,053,105‌
Rocket
Mortgage
LLC
3.88%,
3/1/31(a)
1,475,000‌
1,286,428‌
3,823,827
Ground
Transportation
(0.5%)
Ashtead
Capital,
Inc.
5.95%,
10/15/33(a)
1,850,000‌
1,871,755‌
Health
Care
Equipment
&
Supplies
(0.4%)
Medline
Borrower
LP
3.88%,
4/1/29(a)
1,410,000‌
1,284,315‌
Health
Care
Providers
&
Services
(1.5%)
Centene
Corp.
2.50%,
3/1/31
3,050,000‌
2,511,317‌
HCA,
Inc.
6.00%,
4/1/54
3,000,000‌
3,047,607‌
Legacy
LifePoint
Health
LLC
4.38%,
2/15/27(a)
53,000‌
50,547‌
5,609,471
Hotels,
Restaurants
&
Leisure
(0.4%)
Resorts
World
Las
Vegas
LLC
4.63%,
4/16/29(a)
1,400,000‌
1,278,832‌
Insurance
(0.8%)
Global
Atlantic
Fin
Co.
4.70%,
10/15/51(a)(b)
1,320,000‌
1,190,408‌
6.75%,
3/15/54(a)
1,635,000‌
1,678,732‌
2,869,140
IT
Services
(0.3%)
Kyndryl
Holdings,
Inc.
6.35%,
2/20/34
1,060,000‌
1,088,607‌
Media
(0.9%)
Charter
Communications
Operating
LLC
4.80%,
3/1/50
2,750,000‌
2,037,387‌
LCPR
Senior
Secured
Financing
DAC
6.75%,
10/15/27(a)
1,150,000‌
1,080,412‌
3,117,799
Metals
&
Mining
(1.0%)
Compass
Minerals
International,
Inc.
6.75%,
12/1/27(a)
1,380,000‌
1,335,419‌
Newcastle
Coal
Infrastructure
Group
Pty.
Ltd.
4.40%,
9/29/27(a)
2,541,722‌
2,421,621‌
3,757,040
Oil,
Gas
&
Consumable
Fuels
(1.4%)
Aethon
United
BR
LP
8.25%,
2/15/26(a)
1,310,000‌
1,326,308‌
BP
Capital
Markets
plc
4.88%,
3/22/30(b)(d)
700,000‌
670,002‌
Global
Partners
LP
7.00%,
8/1/27
715,000‌
715,894‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Total
Return
Bond
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(34.3%)
(cont’d)
Petrobras
Global
Finance
BV
6.50%,
7/3/33
$
1,379,000‌
$
1,402,218‌
Raizen
Fuels
Finance
SA
6.45%,
3/5/34(a)
522,000‌
535,892‌
6.95%,
3/5/54(a)
340,000‌
350,244‌
5,000,558
Pharmaceuticals
(0.2%)
Bristol-Myers
Squibb
Co.
5.55%,
2/22/54
833,000‌
857,383‌
Professional
Services
(0.7%)
Concentrix
Corp.
6.60%,
8/2/28
2,450,000‌
2,479,450‌
Semiconductors
&
Semiconductor
Equipment
(0.4%)
Foundry
JV
Holdco
LLC
5.88%,
1/25/34(a)
1,525,000‌
1,528,992‌
Software
(0.3%)
McAfee
Corp.
7.38%,
2/15/30(a)
1,075,000‌
987,002‌
Specialized
REITs
(0.9%)
Extra
Space
Storage
LP
2.40%,
10/15/31
1,825,000‌
1,502,570‌
5.40%,
2/1/34
1,591,000‌
1,584,601‌
3,087,171
Specialty
Retail
(0.1%)
PetSmart,
Inc.
4.75%,
2/15/28(a)
450,000‌
421,745‌
Textiles,
Apparel
&
Luxury
Goods
(0.1%)
Tapestry,
Inc.
7.00%,
11/27/26
425,000‌
438,058‌
Wireless
Telecommunication
Services
(0.3%)
Connect
Finco
SARL
6.75%,
10/1/26(a)
1,125,000‌
1,103,575‌
124,286,313
Municipal
Bonds
(
1.2%
)
Illinois
(
0.2%
)
Chicago
O'Hare
International
Airport,
Series
2010
B
6.40%,
1/1/40
255,000
281,484
Illinois
State
Toll
Highway
Authority,
Series
2009
A
6.18%,
1/1/34
477,000
508,784
790,268
Michigan
(
0.4%
)
University
of
Michigan,
Series
2022
A
4.45%,
4/1/22
1,645,000
1,421,745
New
York
(
0.6%
)
City
of
New
York
NY,
Series
2010
G-1
5.97%,
3/1/36
270,000
285,544
Face
Amount
Value
Onondaga
Civic
Development
Corp.,
Syracuse
University
Series
2020
B
3.07%,
12/1/55
$
2,925,000
$
1,934,714
2,220,258
4,432,271
Sovereign
(
2.1%
)
Dominican
Republic
Government
Bond
5.88%,
1/30/60(a)
700,000
596,961
Export-Import
Bank
of
India
3.25%,
1/15/30(a)
670,000
601,863
3.88%,
2/1/28(a)
505,000
481,768
Mexico
Government
Bond
3.25%,
4/16/30
750,000
669,429
3.75%,
4/19/71
850,000
543,166
NBN
Co.
Ltd.
2.63%,
5/5/31(a)
2,400,000
2,047,942
Petroleos
Mexicanos
6.84%,
1/23/30
2,705,000
2,387,335
Philippine
Government
Bond
4.20%,
3/29/47
420,000
355,033
7,683,497
Supranational
(
0.3%
)
Banque
Ouest
Africaine
de
Developpement
4.70%,
10/22/31(a)
1,240,000
1,070,467
U.S.
Government
and
Agency
Securities
(
17.3%
)
U.S.
Treasury
Notes
0.00%,
4/23/24
45,775,000‌
45,627,719‌
0.00%,
8/1/24
3,250,000‌
3,193,124‌
4.00%,
2/29/28
1,450,000‌
1,433,291‌
4.88%,
11/30/25
12,550,000‌
12,570,100‌
62,824,234
Total
Fixed
Income
Securities
(Cost
$424,799,564)
406,905,757
Shares
Short-Term
Investments
(2.4%)
Investment
Company
(
2.4%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(See
Note
G)
(Cost
$8,604,888)
8,604,888
8,604,888
Total
Investments
(114.5%)
(Cost
$433,404,452)
(e)
415,510,645
Liabilities
in
Excess
of
Other
Assets
(-14.5%)
(52,550,730)
Net
Assets
(100.0%)
$362,959,915
(a)
144A
security
Certain
conditions
for
public
sale
may
exist.
Unless
otherwise
noted,
these
securities
are
deemed
to
be
liquid.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Total
Return
Bond
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
(b)
Floating
or
variable
rate
securities:
The
rates
disclosed
are
as
of
March
31,
2024.
For
securities
based
on
a
published
reference
rate
and
spread,
the
reference
rate
and
spread
are
indicated
in
the
description
in
the
Portfolio
of
Investments.
Certain
variable
rate
securities
may
not
be
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.
These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description
in
the
Portfolio
of
Investments.
(c)
Multi-step
Coupon
rate
changes
in
predetermined
increments
to
maturity.
Rate
disclosed
is
as
of
March
31,
2024.
Maturity
date
disclosed
is
the
ultimate
maturity
date.
(d)
Perpetual
One
or
more
securities
do
not
have
a
predetermined
maturity
date.
Rates
for
these
securities
are
fixed
for
a
period
of
time,
after
which
they
revert
to
a
floating
rate.
Interest
rates
in
effect
are
as
of
March
31,
2024.
(e)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$433,404,452.
The
aggregate
gross
unrealized
appreciation
is
$3,127,794
and
the
aggregate
gross
unrealized
depreciation
is
$21,021,601,
resulting
in
net
unrealized
depreciation
of
$17,893,807.
ARM
Adjustable
Rate
Mortgage
CME
Chicago
Mercantile
Exchange
CLO
Collateralized
Loan
Obligation
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
GNMA
Government
National
Mortgage
Association
IO
Interest
Only
REIT
Real
Estate
Investment
Trust
REMIC
Real
Estate
Mortgage
Investment
Conduit
SOFR
Secured
Overnight
Financing
Rate
SOFR30A
Secured
Overnight
Financing
Rate
30
Day
Average
STRIPS
Separate
Trading
of
Registered
Interest
and
Principal
Securities.
The
STRIPS
Program
lets
investors
hold
and
trade
individual
interest
and
principal
components
of
eligible
notes
and
bonds
as
separate
securities.
Future
Contracts:
The
Fund
had
the
following
futures
contracts
open
at
March
31,
2024:
Number
of
Contracts
Expiration
Date
Notional
Amount
Value
Unrealized
Appreciation
(Depreciation)
Long:
U.S.
Treasury
2
Year
Notes
77‌
Jun-24
$
200‌
$
15,745,297‌
$
(16,086‌)
U.S.
Treasury
5
Year
Notes
301‌
Jun-24
100‌
32,211,703‌
(75,703‌)
U.S.
Treasury
10
Year
Notes
136‌
Jun-24
100‌
15,068,375‌
11,797‌
U.S.
Treasury
Long
Bonds
68‌
Jun-24
100‌
8,189,750‌
149,094‌
U.S.
Treasury
Ultra
Bonds
211‌
Jun-24
100‌
27,219,000‌
276,767‌
Short:
U.S.
Treasury
10
Year
Ultra
Bonds
85‌
Jun-24
$
100‌
$
(9,741,797‌)
$
(7,063‌)
$
338,806‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Total
Return
Bond
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
22.7‌
%
Commercial
Mortgage-Backed
Securities
18.9‌
Collateralized
Mortgage
Obligations
Agency
Collateral
Series
15.8‌
U.S.
Government
and
Agency
Securities
15.1‌
Asset-Backed
Securities
15.0‌
Banks
12.5‌
Total
Investments
100.0‌%**
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
**
Does
not
include
open
long/short
futures
contracts
with
a
value
of
$
108,175,922
and
net
unrealized
appreciation
of
$
338,806.
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Total
Return
Bond
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
*
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$424,799,564)
$
406,905,757
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$8,604,888)
8,604,888
Total
Investments
in
Securities,
at
Value
(Cost
$433,404,452)
415,510,645
Receivable
for
Investments
Sold
13,542,115
Interest
Receivable
2,592,121
Dividends
Receivable
19,795
Due
from
Broker
2,381,390
Receivable
for
Variation
margin
on
Futures
Contracts
41,720
Prepaid
Expenses
22,786
Total
Assets
434,110,572
Liabilities:
Due
to
Custodian
37,749
Payable
for
Investments
Purchased
69,180,943
Payable
for
Management
Fee
28,454
Payable
for
Dividends
to
Shareholders
1,878,862
Other
Liabilities
24,649
Total
Liabilities
71,150,657
Net
Assets
$
362,959,915
Net
Assets
Consist
of:
Paid-in-Capital
$
507,379,761
Total
Accumulated
Loss
(144,419,846)
Net
Assets
$
362,959,915
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
7,279,193
Net
Asset
Value
Per
Share
$
49.86
*
The
Fund
acquired
all
the
assets
and
liabilities
of
the
Morgan
Stanley
Institutional
Fund
Trust
-
Core
Plus
Fixed
Income
Portfolio
(“Predecessor
Fund”)
in
a
reorganization
that
occurred
as
of
the
close
of
business
on
March
22,
2024
(“Reorganization”).
The
Predecessor
Fund
ceased
operations
immediately
following
the
Reorganization.
As
a
result,
all
financial
information
prior
to
the
Reorganization,
reflects
the
Predecessor
Fund's
Class
I
shares.
See
Notes
to
Financial
Statements
for
further
Information
on
the
Reorganization.
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Total
Return
Bond
ETF
14
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Six
Months
Ended
March
31,
2024
*
Investment
Income:
Interest
from
Securities
of
Unaffiliated
Issuers
$
13,143,451
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
1,216,160
Income
from
Securities
Loaned
Net
4,750
Total
Investment
Income
14,364,361
Expenses:
Management
Fee
(Note
B)
28,662
Advisory
Fees
(Note
B)
884,816
Administration
Fees
(Note
B)
188,761
Sub
Transfer
Agency
Fees
122,631
Distribution
and
Shareholder
Services
Fees
(Note
C)
115,756
Professional
Fees
97,636
Registration
Fees
88,363
Custodian
Fees
(Note
E)
37,334
Reorganization
Fees
397,957
Shareholder
Reporting
Fees
17,855
Transfer
Agency
Fees
(Note
D)
12,095
Trustees'
Fees
and
Expenses
5,274
Other
Expenses
47,869
Total
Expenses
2,045,009
Waiver
of
Advisory
Fees
(924,437)
Reimbursement
of
Class
Specific
Expenses
(33,110)
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(35,416)
Net
Expenses
1,052,046
Net
Investment
Income
13,312,315
Realized
Gain
(Loss):
Investments
Sold
(17,255,851)
Foreign
Currency
Forward
Exchange
Contracts
584,045
Foreign
Currency
Translation
(154,837)
Futures
Contracts
141,526
Swap
Agreements
36,099
Net
Realized
Loss
(16,649,018)
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
34,722,146
Foreign
Currency
Forward
Exchange
Contracts
(746,806)
Foreign
Currency
Translation
43,126
Futures
Contracts
4,204,485
Swap
Agreements
33,627
Net
Change
in
Unrealized
Appreciation
(Depreciation)
38,256,578
Net
Realized
Loss
and
Change
in
Unrealized
Appreciation
(Depreciation)
21,607,560
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
34,919,875
*
The
Fund
acquired
all
the
assets
and
liabilities
of
the
Morgan
Stanley
Institutional
Fund
Trust
-
Core
Plus
Fixed
Income
Portfolio
(“Predecessor
Fund”)
in
a
reorganization
that
occurred
as
of
the
close
of
business
on
March
22,
2024
(“Reorganization”).
The
Predecessor
Fund
ceased
operations
immediately
following
the
Reorganization.
As
a
result,
all
financial
information
prior
to
the
Reorganization,
reflects
the
Predecessor
Fund's
Class
I
shares.
See
Notes
to
Financial
Statements
for
further
Information
on
the
Reorganization.
Semi-Annual
Report
March
31,
2024
Eaton
Vance
Total
Return
Bond
ETF
15
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statements
of
Changes
in
Net
Assets
Six
Months
Ended
March
31,
2024
*
(unaudited)
Year
Ended
September
30,
2023
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
13,312,315
$
27,646,315
Net
Realized
Loss
(16,649,018)
(56,216,425)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
38,256,578
41,082,000
Net
Increase
in
Net
Assets
Resulting
from
Operations
34,919,875
12,511,890
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(15,799,488)
(30,270,872)
Total
Dividends
and
Distributions
to
Shareholders
(15,799,488)
(30,270,872)
Capital
Share
Transactions:
**
Subscribed
61,374,141
160,653,622
Distributions
Reinvested
13,735,675
22,491,057
Redeemed
(287,390,260)
(216,245,807)
Class
A:
Subscribed
7,658,256
Distributions
Reinvested
2,905,036
Redeemed
(15,882,191)
Class
L:
Subscribed
100,295
Distributions
Reinvested
41,107
Redeemed
(270,006)
Class
C:
Subscribed
1,929,473
Distributions
Reinvested
546,707
Redeemed
(6,011,960)
Class
R6:
Subscribed
7,700,797
Distributions
Reinvested
3,621,098
Redeemed
(46,652,938)
Net
Decrease
in
Net
Assets
Resulting
from
Capital
Share
Transactions
(212,280,444)
(77,415,454)
Total
Decrease
in
Net
Assets
(193,160,057)
(95,174,436)
Net
Assets:
Beginning
of
Period
556,119,972
651,294,408
End
of
Period
$
362,959,915
$
556,119,972
Semi-Annual
Report
March
31,
2024
Eaton
Vance
Total
Return
Bond
ETF
16
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statements
of
Changes
in
Net
Assets
Six
Months
Ended
March
31,
2024
*
(unaudited)
Year
Ended
September
30,
2023
Capital
Share
Transactions:
**
Beginning
of
Period
11,570,335
68,905,624
Shares
Subscribed
1,250,907
16,898,943
Shares
Issued
on
Distributions
Reinvested
281,829
2,364,922
Shares
Redeemed
(5,823,878)
(22,717,780)
Class
A:
Shares
Subscribed
804,501
Shares
Issued
on
Distributions
Reinvested
304,734
Shares
Redeemed
(1,673,636)
Class
L:
Shares
Subscribed
10,599
Shares
Issued
on
Distributions
Reinvested
4,302
Shares
Redeemed
(28,825)
Class
C:
Shares
Subscribed
202,882
Shares
Issued
on
Distributions
Reinvested
57,748
Shares
Redeemed
(636,643)
Class
R6:
Shares
Subscribed
818,933
Shares
Issued
on
Distributions
Reinvested
381,076
Shares
Redeemed
(4,899,575)
Shares
Outstanding,
End
of
Period
Net
Increase
in
7,279,193
60,797,805
*
The
Fund
acquired
all
the
assets
and
liabilities
of
the
Morgan
Stanley
Institutional
Fund
Trust  -  Core
Plus
Fixed
Income
Portfolio
(“Predecessor
Fund”)
in
a
reorganization
that
occurred
as
of
the
close
of
business
on
March
22,
2024
(“Reorganization”).
The
Predecessor
Fund
ceased
operations
immediately
following
the
Reorganization.
As
a
result,
all
financial
information
prior
to
the
Reorganization,
reflects
the
Predecessor
Fund's
Class
I
shares.
See
Notes
to
Financial
Statements
for
further
Information
on
the
Reorganization.
**
Reflects
the
reorganization
from
the
Morgan
Stanley
Institutional
Fund
Trust
-
Core
Plus
Fixed
Income
Portfolio
on
March
22,
2024
.
See
Notes
to
Financial
Statements.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Eaton
Vance
Total
Return
Bond
ETF
17
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30
2023
2022
2021
2020
2019
Net
Asset
Value,
Beginning
of
Period
(1)
$48.08‌
$49.66‌
$60.59‌
$62.59‌
$60.85‌
$56.96‌
Income
(Loss)
from
Investment
Operations:
(1)
Net
Investment
Income
(2)
1.38‌
2.42‌
1.52‌
1.37‌
1.63‌
1.94‌
Net
Realized
and
Unrealized
Gain
(Loss)
0.
92‌
(1.37‌)
(10.82‌)
(0.37‌)
2.11‌
4.10‌
Total
from
Investment
Operations
2
.
30‌
1.05‌
(9.30‌)
1.00‌
3.74‌
6.04‌
Distributions
from
and/or
in
Excess
of:
(1)
Net
Investment
Income
(0.52‌)
(2.63‌)
(1.47‌)
(1.37‌)
(1.58‌)
(2.15‌)
Net
Realized
Gain
—‌
—‌
(0.16‌)
(1.63‌)
(0.42‌)
—‌
Total
Distributions
(0.52‌)
(2.63‌)
(1.63‌)
(3.00‌)
(2.00‌)
(2.15‌)
Net
Asset
Value,
End
of
Period
(1)
$49.86‌
$48.08‌
$49.66‌
$60.59‌
$62.59‌
$60.85‌
Total
Return
(3)
(4)
7.16‌%
(
5
)
2.03‌%
(15.58‌)%
1.61‌%
6.27‌%
10.83‌%
(
6
)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
(7)
$362,960
$—
$—
$—
$—
$—
Net
Assets,
End
of
Period
(Thousands)
$362,960‌
$423,920‌
$470,728‌
$727,989‌
$662,724‌
$457,610‌
Ratio
of
Expenses
Before
Expense
Limitation
0.79%
(8)
0.63%
0.63%
0.62%
0.64%
0.67%
Ratio
of
Expenses
After
Expense
Limitation
0.40%
(8)(9)
0.40%
(9)
0.41%
(9)
0.41%
(9)
0.40%
(9)
0.41%
(9)
Ratio
of
Expenses
After
Expense
Limitation
Excluding
Interest
Expenses
N/A
N/A
N/A
N/A
0.40%
(9)
N/A
Ratio
of
Net
Investment
Income
5.62‌%
(
8
)(
9
)
4.81‌%
(
9
)
2.74‌%
(
9
)
2.26‌%
(
9
)
2.63‌%
(
9
)
3.29‌%
(
9
)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0.02‌%
0.02‌%
0.01‌%
0.01‌%
0.02‌%
0.01‌%
Portfolio
Turnover
Rate
4‌%
(
5
)
431‌%
266‌%
434‌%
287‌%
217‌%
(1)
Per
share
amounts
reflect
the
conversion
of
the
Predecessor
Fund
into
the
Fund
as
of
the
close
of
March
22,
2024.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
The
Predecessor
Fund
was
designated
as
the
accounting
survivor
in
the
Reorganization.
As
a
result,
the
Fund
assumed
the
Predecessor
Fund's
historical
performance
and
the
performance
information
reflects
that
of
the
Class
I
shares
of
the
Predecessor
Fund.
(5)
Not
annualized.
(6)
Performance
was
positively
impacted
by
approximately
0.20%
due
to
the
receipt
of
proceeds
from
the
settlement
of
a
class
action
suit
involving
the
Fund’s
past
holdings.
This
was
a
one-time
settlement,
and
as
a
result,
the
impact
on
the
NAV
and
consequently
the
performance
will
not
likely
be
repeated
in
the
future.
Had
this
settlement
not
occurred,
the
total
return
for
Class
I
shares
would
have
been
approximately
10.63%.
(7)
The
Fund
acquired
all
the
assets
and
liabilities
of
the
Morgan
Stanley
Institutional
Fund
Trust
-
Core
Plus
Fixed
Income
Portfolio
(“Predecessor
Fund”)
in
a
reorganization
that
occurred
as
of
the
close
of
business
on
March
22,
2024
(“Reorganization”).
The
Predecessor
Fund
ceased
operations
immediately
following
the
Reorganization.
As
a
result,
all
financial
information
prior
to
the
Reorganization,
reflects
the
Predecessor
Fund's
Class
I
shares.
See
Notes
to
Financial
Statements
for
further
Information
on
the
Reorganization.
(8)
Annualized.
(9)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
18
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
"Trust")
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to
establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Act").
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Eaton
Vance
Total
Return
Bond
ETF (the
"Fund"),
which
seeks
above-average
total
return
over
a
market
cycle
of
three
to
five
years.
The
Fund
is
diversified.
On
March
22,
2024,
the
Fund
acquired
all
the
assets
and
liabilities
of
the
Predecessor
Fund,
based
on
the
respective
valu-
ations
as
of
the
close
of
business
on
March
22,
2024,
pursuant
to
a
Plan
of
Reorganization
approved
by
the
shareholders
of
the
Predecessor
Fund
on
January
5,
2024
(the
“Reorganiza-
tion”).
This
tax-free
acquisition
of
the
Predecessor
Fund
was
designated
as
the
accounting
survivor
in
the
Reorganization.
As
a
result,
the
Fund
assumed
the
Predecessor
Fund's
accounting
and
financial
history.
The
Fund
has
the
same
Adviser,
substan-
tially
similar
investment
objective
and
strategy
as
the
Prede-
cessor
Fund.
The
net
assets
of
the
Predecessor
Fund
before
the
Reorganization
were
$363,962,896
with
shares
outstanding
of
38,247,818,
including
unrealized
depreciation
on
investments
of
$18,057,023
with
a
fair
value
of
$406,626,891
and
cost
of
$424,683,914.
Immediately
after
the
Reorganization,
the
net
assets
of
the
Fund
were
$363,961,956
with
shares
outstanding
of
7,279,194.
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteris-
tics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers/dealers
may
also
be
utilized.
In
these
circum-
stances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable
brokers/dealers;
(2)
when
market
quotations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circum-
stances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
secu-
rity’s
market
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees;
(3)
futures
are
valued
at
the
settlement
price
on
the
exchange
on
which
they
trade
or,
if
a
settlement
price
is
unavailable,
at
the
last
sale
price
on
the
exchange; and
(4)
investments
in
mutual
funds,
including
the
Morgan
Stanley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
 Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Foreign
Currency
Translation
and
Foreign
Invest-
ments:
The
books
and
records
of
the
Fund
are
main-
tained
in
U.S.
dollars.
Foreign
currency
amounts
are
translated
into
U.S.
dollars
as
follows: 
investments,
other
assets
and
liabilities
at
the
prevail-
ing
rate
of
exchange
on
the
valuation
date;
investment
transactions
and
investment
income
at
the
prevailing
rates
of
exchange
on
the
dates
of
such
transactions. 
Although
the
net
assets
of
the
Fund
are
presented
at
the
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:
Fixed
Income
Securities
Asset-Backed
Securities
$
—‌
$
62,479‌
$
—‌
$
62,479‌
Collateralized
Mortgage
Obligations
Agency
Collateral
Series
—‌
65,776‌
—‌
65,776‌
Commercial
Mortgage-Backed
Securities
—‌
78,355‌
—‌
78,355‌
Corporate
Bonds
—‌
124,287‌
—‌
124,287‌
Municipal
Bonds
—‌
4,432‌
—‌
4,432‌
Sovereign
—‌
7,683‌
—‌
7,683‌
Supranational
—‌
1,070‌
—‌
1,070‌
U.S.
Government
and
Agency
Securities
—‌
62,824‌
—‌
62,824‌
—‌
—‌
—‌
—‌
Total
Fixed
Income
Securities
—‌
406,906‌
—‌
406,906‌
—‌
—‌
—‌
—‌
Short-Term
Investments
Investment
Company
8,605‌
—‌
—‌
8,605‌
Futures
Contracts
438‌
—‌
—‌
438‌
Total
Assets
$9,043‌
$406,906‌
$—‌
$415,949‌
Liabilities:
Futures
Contracts
(99‌)
—‌
—‌
(99‌)
Total
$8,944‌
$406,906‌
$—‌
$415,850‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
20
Morgan
Stanley
ETF
Trust
foreign
exchange
rates
and
market
values
at
the
close
of
the
period,
the
Fund
does
not
isolate
that
portion
of
the
results
of
operations
arising
as
a
result
of
changes
in
the
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
the
market
prices
of
securities
held
at
period
end.
Similarly,
the
Fund
does
not
isolate
the
effect
of
changes
in
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
the
market
prices
of
securities
sold
during
the
period.
Accordingly,
realized
and
unre-
alized
foreign
currency
gains
(losses)
on
investments
in
securities
are
included
in
the
reported
net
realized
and
unrealized
gains
(losses)
on
investment
transactions
and
balances.
However,
pursuant
to
U.S.
federal
income
tax
regulations,
gains
and
losses
from
certain
foreign
currency
transactions
and
the
foreign
currency
portion
of
gains
and
losses
realized
on
sales
and
maturities
of
foreign
de-
nominated
debt
securities
are
treated
as
ordinary
income
for
U.S.
federal
income
tax
purposes. 
Net
realized
gains
(losses)
on
foreign
currency
transac-
tions
represent
net
foreign
exchange
gains
(losses)
from
foreign
currency
forward
exchange
contracts,
disposition
of
foreign
currencies,
currency
gains
(losses)
realized
be-
tween
the
trade
and
settlement
dates
on
securities
transac-
tions,
and
the
difference
between
the
amount
of
invest-
ment
income
and
foreign
withholding
taxes
recorded
on
the
Fund’s
books
and
the
U.S.
dollar
equivalent
amounts
actually
received
or
paid.
The
change
in
unrealized
cur-
rency
gains
(losses)
on
foreign
currency
transactions
for
the
period
is
reflected
in
the
Statement
of
Operations. 
Foreign
security
and
currency
transactions
may
involve
certain
considerations
and
risks
not
typically
associated
with
those
of
U.S.
dollar
denominated
transactions
as
a
result
of,
among
other
factors,
fluctuations
of
exchange
rates
in
relation
to
the
U.S.
dollar,
the
possibility
of
lower
levels
of
governmental
supervision
and
regulation
of
foreign
securities
markets
and
the
possibility
of
political
or
economic
instability. 
Governmental
approval
for
foreign
investments
may
be
required
in
advance
of
making
an
investment
under
certain
circumstances
in
some
countries,
and
the
extent
of
foreign
investments
in
domestic
companies
may
be
subject
to
limitation
in
other
countries.
Foreign
owner-
ship
limitations
also
may
be
imposed
by
the
charters
of
individual
companies
to
prevent,
among
other
concerns,
violations
of
foreign
investment
limitations.
As
a
result,
an
additional
class
of
shares
(identified
as
“Foreign”
in
the
Portfolio
of
Investments)
may
be
created
and
offered
for
investment.
The
“local”
and
“foreign
shares”
market
values
may
differ.
In
the
absence
of
trading
of
the
foreign
shares
in
such
markets,
the
Fund
values
the
foreign
shares
at
the
closing
exchange
price
of
the
local
shares. 
4.
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.
Derivatives
are
financial
instruments
whose
value
is
based,
in
part,
on
the
value
of
an
underlying
asset,
interest
rate,
index
or
financial
instrument.
Prevail-
ing
interest
rates
and
volatility
levels,
among
other
things,
also
affect
the
value
of
derivative
instruments.
A
deriva-
tive
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,
instru-
ments,
indices
or
interest
rates
to
which
the
derivative
instrument
relates,
risks
that
the
transactions
may
not
be
liquid
and
risks
arising
from
margin
requirements,
risks
arising
from
mispricing
or
valuation
complexity
and
operational
and
legal
risks. 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
port-
folio
investments.
All
of
the
Fund’s
holdings,
including
derivative
instruments,
are
marked-to-market
each
day
with
the
change
in
value
reflected
in
unrealized
appreci-
ation
(depreciation).
Upon
disposition,
a
realized
gain
or
loss
is
recognized.
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
transac-
tions
may
cause
the
Fund
to
liquidate
portfolio
positions
when
it
may
not
be
advantageous
to
do
so
to
satisfy
its
obligations
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
objectives,
there
is
no
assurance
that
the
use
of
derivatives
will
achieve
this
result.
Following
is
a
description
of
the
derivative
instruments
and
techniques
that
the
Fund
used
during
the
period
and
their
associated
risks:
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
21
Morgan
Stanley
ETF
Trust
Foreign
Currency
Forward
Exchange
Contracts:
In
connection
with
its
investments
in
foreign
securities,
the
Fund
also
entered
into
contracts
with
banks,
brokers/
dealers
to
purchase
or
sell
foreign
currencies
at
a
future
date.
A
foreign
currency
forward
exchange
contract
(“currency
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.
Currency
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
addi-
tion,
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
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
ex-
posure
to
the
exchange
rate
between
any
two
currencies.
To
the
extent
hedged
by
the
use
of
currency
contracts,
the
precise
matching
of
the
currency
contract
amounts
and
the
value
of
the
securities
involved
will
not
generally
be
possible
because
the
future
value
of
such
securities
in
foreign
currencies
will
change
as
a
consequence
of
market
movements
in
the
value
of
those
securities
between
the
date
on
which
the
contract
is
entered
into
and
the
date
it
matures.
Furthermore,
such
transactions
may
reduce
or
preclude
the
opportunity
for
gain
if
the
value
of
the
currency
should
move
in
the
direction
opposite
to
the
position
taken.
There
is
additional
risk
to
the
extent
that
currency
contracts
create
exposure
to
currencies
in
which
the
Fund’s
securities
are
not
denominated.
Unanticipated
changes
in
currency
prices
may
result
in
poorer
overall
performance
for
the
Fund
than
if
it
had
not
entered
into
such
contracts.
The
use
of
currency
contracts
involves
the
risk
of
loss
from
the
insolvency
or
bankruptcy
of
the
counterparty
to
the
contract
or
the
failure
of
the
coun-
terparty
to
make
payments
or
otherwise
comply
with
the
terms
of
the
contract.
A
currency
contract
is
marked-to-
market
daily
and
the
change
in
market
value
is
recorded
by
the
Fund
as
unrealized
gain
or
loss.
The
Fund
records
realized
gains
(losses)
when
the
currency
contract
is
closed
equal
to
the
difference
between
the
value
of
the
currency
contract
at
the
time
it
was
opened
and
the
value
at
the
time
it
was
closed.
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
specif-
ic
price
at
a
specific
future
time.
The
value
of
a
futures
contract
tends
to
increase
and
decrease
in
tandem
with
the
value
of
the
underlying
instrument.
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.
During
the
period
the
futures
contract
is
open,
payments
are
received
from
or
made
to
the
broker
based
upon
chang-
es
in
the
value
of
the
contract
(the
variation
margin).
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
unsuc-
cessful
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
contract
at
any
particular
time.
Swaps:
The
Fund
may
enter
into
OTC
swap
contracts
or
cleared
swap
transactions.
A
swap
contract
is
an
agree-
ment
between
two
parties
pursuant
to
which
the
parties
exchange
payments
at
specified
dates
on
the
basis
of
a
specified
notional
amount,
with
the
payments
calculat-
ed
by
reference
to
specified
securities,
indices,
reference
rates,
currencies
or
other
instruments.
Typically
swap
agreements
provide
that
when
the
period
payment
dates
for
both
parties
are
the
same,
the
payments
are
made
on
a
net
basis
(i.e.,
the
two
payment
streams
are
netted
out,
with
only
the
net
amount
paid
by
one
party
to
the
other).
The
Fund’s
obligations
or
rights
under
a
swap
contract
entered
into
on
a
net
basis
will
generally
be
equal
only
to
the
net
amount
to
be
paid
or
received
under
the
agree-
ment,
based
on
the
relative
values
of
the
positions
held
by
each
party.
Cleared
swap
transactions
may
help
reduce
counterparty
credit
risk.
In
a
cleared
swap,
the
Fund’s
ul-
timate
counterparty
is
a
clearinghouse
rather
than
a
swap
dealer,
bank
or
other
financial
institution.
OTC
swap
agreements
are
not
entered
into
or
traded
on
exchanges
and
often
there
is
no
central
clearing
or
guaranty
function
for
OTC
swaps.
These
OTC
swaps
are
often
subject
to
credit
risk
or
the
risk
of
default
or
non-performance
by
the
counterparty.
Both
OTC
and
cleared
swaps
could
result
in
losses
if
interest
rates,
foreign
currency
exchange
rates
or
other
factors
are
not
correctly
anticipated
by
the
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
22
Morgan
Stanley
ETF
Trust
Fund
or
if
the
reference
index,
security
or
investments
do
not
perform
as
expected.
During
the
period
swap
agreements
are
open,
payments
are
received
from
or
made
to
the
counterparty
or
clearing-house
based
on
changes
in
the
value
of
the
contract
or
variation
margin,
respective-
ly.
The
Dodd-Frank
Wall
Street
Reform
and
Consumer
Protection
Act
and
related
regulatory
developments
require
the
clearing
and
exchange-trading
of
certain
stan-
dardized
swap
transactions.
Mandatory
exchange-trading
and
clearing
is
occurring
on
a
phased-in
basis
based
on
the
type
of
market
participant
and
U.S.
Commodities
Futures
Trading
Commission
(“CFTC”)
approval
of
con-
tracts
for
central
clearing
and
exchange
trading.
The
Fund’s
use
of
swaps
during
the
period
included
those
based
on
the
credit
of
an
underlying
security
commonly
referred
to
as
“credit
default
swaps.”
The
Fund
may
be
either
the
buyer
or
seller
in
a
credit
default
swap.
Where
the
Fund
is
the
buyer
of
a
credit
default
swap
contract,
it
would
typically
be
entitled
to
receive
the
par(or
other
agreed-upon)
value
of
a
referenced
debt
obligation
from
the
counterparty
to
the
contract
only
in
the
event
of
a
default
or
similar
event
by
the
issuer
of
the
debt
obliga-
tion.
If
no
default
occurs,
the
Fund
would
have
paid
to
the
counterparty
a
periodic
stream
of
payments
over
the
term
of
the
contract
and
received
no
benefit
from
the
contract.
When
the
Fund
is
the
seller
of
a
credit
default
swap
contract,
it
typically
receives
the
stream
of
payments
but
is
obligated
to
pay
an
amount
equal
to
the
par
(or
other
agreed-upon)
value
of
a
referenced
debt
obligation
upon
the
default
or
similar
event
by
the
issuer
of
the
ref-
erenced
debt
obligation.
The
use
of
credit
default
swaps
could
result
in
losses
to
the
Fund
if
the
Adviser
fails
to
correctly
evaluate
the
creditworthiness
of
the
issuer
of
the
referenced
debt
obligation.
If
the
Fund
is
a
seller
of
protection
and
a
credit
event
occurs,
as
defined
under
the
terms
of
that
particular
swap
agreement,
the
Fund
will
either
(i)
pay
to
the
buyer
of
protection
an
amount
equal
to
the
notional
amount
of
the
swap
agreement
and
take
delivery
of
the
referenced
obligation,
other
deliverable
obligations
or
underlying
securities
comprising
the
referenced
index
or
(ii)
pay
a
net
settlement
amount
in
the
form
of
cash
or
securities
equal
to
the
notional
amount
of
the
swap
agreement
less
the
recovery
value
of
the
referenced
obligation
or
underlying
securities
comprising
the
referenced
index.
If
the
Fund
is
a
buyer
of
protection
and
a
credit
event
occurs,
as
defined
under
the
terms
of
that
particular
swap
agreement,
the
Fund
will
either
(i)
receive
from
the
seller
of
protection
an
amount
equal
to
the
notional
amount
of
the
swap
agreement
and
deliver
the
referenced
obligation,
other
deliverable
obligations
or
underlying
securities
compris-
ing
the
referenced
index
or
(ii)
receive
a
net
settlement
amount
in
the
form
of
cash
or
securities
equal
to
the
notional
amount
of
the
swap
agreement
less
the
recovery
value
of
the
referenced
obligation
or
underlying
securities
comprising
the
referenced
index.
Recovery
values
are
estimated
by
market
makers
considering
either
industry
standard
recovery
rates
or
entity
specific
factors
and
con-
siderations
until
a
credit
event
occurs.
If
a
credit
event
has
occurred,
the
recovery
value
is
determined
by
a
facilitated
auction
whereby
a
minimum
number
of
allowable
broker
bids,
together
with
a
specified
valuation
method,
are
used
to
calculate
the
settlement
value.
The
Fund’s
maximum
risk
of
loss
from
counterparty
risk,
either
as
the
protec-
tion
seller
or
as
the
protection
buyer,
is
the
fair
value
of
the
swap
agreement.
The
current
credit
rating
of
each
individual
issuer
is
listed
in
the
table
following
the
Portfolio
of
Investments
and
serves
as
an
indicator
of
the
current
status
of
the
pay-
ment/performance
risk
of
the
credit
derivative.
Alterna-
tively,
for
credit
default
swaps
on
an
index
of
credits,
the
quoted
market
prices
and
current
values
serve
as
an
indi-
cator
of
the
current
status
of
the
payment/performance
risk
of
the
credit
derivative.
Generally,
lower
credit
ratings
and
increasing
market
values,
in
absolute
terms,
represent
a
deterioration
of
the
credit
and
a
greater
likelihood
of
an
adverse
credit
event
of
the
issuer.
When
the
Fund
has
an
unrealized
loss
on
a
swap
agree-
ment,
the
Fund
has
instructed
the
custodian
to
pledge
cash
or
liquid
securities
as
collateral
with
a
value
approx-
imately
equal
to
the
amount
of
the
unrealized
loss.
Col-
lateral
pledges
are
monitored
and
subsequently
adjusted
if
and
when
the
swap
valuations
fluctuate.
If
applicable,
cash
collateral
is
included
with
“Due
from
(to)
Broker”
in
the
Statement
of
Assets
and
Liabilities.
Upfront
payments
paid
or
received
by
the
Fund
will
be
reflected
as
an
asset
or
liability,
respectively,
in
the
State-
ment
of
Assets
and
Liabilities.
FASB
ASC
815,
“Derivatives
and
Hedging”
(“ASC
815”),
is
intended
to
improve
financial
reporting
about
deriv-
ative
instruments
by
requiring
enhanced
disclosures
to
enable
investors
to
better
understand
how
and
why
the
Fund
uses
derivative
instruments,
how
these
derivative
instruments
are
accounted
for
and
their
effects
on
the
Fund’s
financial
position
and
results
of
operations.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
23
Morgan
Stanley
ETF
Trust
The
following
tables
set
forth
the
fair
value
of
the
Fund’s
derivative
contracts
by
primary
risk
exposure
as
of
March
31,
2024:
The
following
tables
set
forth
by
primary
risk
exposure
the
Fund’s
realized
gains
(losses)
and
change
in
unrealized
appreciation
(depreciation)
by
type
of
derivative
contract
for
the
sixth
months
ended
March
31,
2024
in
accor-
dance
with
ASC
815:
For
the
six
months
ended
March
31,
2024,
the
approx-
imate
average
monthly
amount
outstanding
for
each
derivative
type
is
as
follows:
5.
Securities
Lending:
The
Fund
lends
securities
to
qual-
ified
financial
institutions,
such
as
broker-dealers,
to
earn
additional
income.
Any
increase
or
decrease
in
the
fair
value
of
the
securities
loaned
that
might
occur
and
any
interest
earned
or
dividends
declared
on
those
securities
during
the
term
of
the
loan
would
remain
in
the
Fund.
The
Fund
would
receive
cash
or
securities
as
collateral
in
an
amount
equal
to
or
exceeding
100%
of
the
current
fair
value
of
the
loaned
securities.
The
collateral
is
marked-
to-market
daily
by
State
Street
Bank
and
Trust
Company
(“State
Street”), the
securities
lending
agent,
to
ensure
that
a
minimum
of
100%
collateral
coverage
is
main-
tained.
Based
on
pre-established
guidelines,
the
securities
lending
agent
invests
any
cash
collateral
that
is
received
in
an
affil-
iated
money
market
portfolio
and
repurchase
agreements.
Securities
lending
income
is
generated
from
the
earnings
on
the
invested
collateral
and
borrowing
fees,
less
any
rebates
owed
to
the
borrowers
and
compensation
to
the
lending
agent,
and
is
recorded
as
“Income
from
Securities
Loaned
Net”
in
the
Fund’s
Statement
of
Operations.
Risks
in
securities
lending
transactions
are
that
a
borrow-
er
may
not
provide
additional
collateral
when
required
or
return
the
securities
when
due,
and
that
the
value
of
the
short-term
investments
will
be
less
than
the
amount
of
cash
collateral
plus
any
rebate
that
is
required
to
be
returned
to
the
borrower.
The
Fund
has
the
right
under
the
securities
lending
agreement
to
recover
the
securities
from
the
borrower
on
demand. 
The
Fund
has
the
right
under
the
securities
lending
agreement
to
recover
the
securities
from
the
borrower
on
demand.
As
of
the
date
of
this
report,
there
were
no
securities
out
on
loan.
As
of
March
24,
2024,
State
Street
is
no
longer
the
secu-
rities
lending
agent.
6.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
7.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
monthly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
Asset
Derivatives
Statement
of
Assets
and
Primary
Risk
Value
Liabilities
Location
Exposure
Futures
Contracts
Variation
Margin
on
Futures
Contracts
Interest
Rate
Risk
$437,658‌(a)
Liability
Derivatives
Statement
of
Assets
and
Primary
Risk
Liabilities
Location
Exposure
Value
Futures
Contracts
Variation
Margin
on
Futures
Contracts
Interest
Rate
Risk
$(98,852‌)(a)
(a)
This
Amount
represents
the
cumulative
appreciation
(depreciation)
as
reported
in
the
Portfolio
of
investments.
The
Statement
of
Assets
and
Liabilities
only
reflects
the
current
day's
net
variation
margin.
Realized
Gain
(Loss)
Primary
Risk
Exposure
Derivative
Type
Value
Currency
Risk
Foreign
Currency
Forward
Exchange
Contracts
$
584,045‌
Interest
Rate
Risk
Futures
Contracts
141,526‌
Credit
Risk
Swap
Agreement
36,099‌
Total
$761,670‌
Change
in
Unrealized
Appreciation
(Depreciation)
Primary
Risk
Exposure
Derivative
Type
Value
Currency
Risk
Foreign
Currency
Forward
Exchange
Contracts
$(746,806‌)
Interest
Rate
Risk
Futures
Contracts
4,204,485‌
Credit
Risk
Swap
Agreement
33,627‌
Total
$3,457,679‌
Foreign
Currency
Forward
Exchange
Contracts:
Average
monthly
principal
amount
.................
$55,335,030
Futures
Contracts:
Average
monthly
notional
value
...................
$216,610,226
Swap
Agreements:
Average
monthly
notional
amount
.................
$5,900,000
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
24
Morgan
Stanley
ETF
Trust
8.
Security
Transactions
and Income:
 Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
income
at
fair
value.
Interest
income
is
recog-
nized
on
the
accrual
basis
(except
where
collection
is
in
doubt)
net
of
applicable
withholding
taxes.
Discounts
are
accreted
and
premiums
are
amortized
over
the
life
of
the
respective
securities.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.32% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
Prior
to
March
22,
2024,
the
Predecessor
Fund
paid
the
Ad-
viser
0.375%
for
the
first
billion
of
the
average
daily
net
assets
of
the
Predecessor
Fund
and
0.300%
for
over
a
billion
of
the
average
daily
net
assets
of
the
Predecessor
Fund.
The
Adviser
had
agreed
to
reduce
its
fees
and/or
reimburse
the
Predeces-
sor
Fund
so
that
total
annual
operating
expenses,
excluding
certain
investment
related
expenses,
taxes,
interest
and
other
extraordinary
expenses
(including
litigation),
will
not
exceed
0.42%
for
Class
I
shares,
0.77%
for
Class
A
shares,
1.02%
for
Class
L
shares,
1.52%
for
Class
C
shares
and
0.37%
for
Class
R6
shares.
For
the
period
ended
March
31,
2024,
$924,427
of
advisory
fees
were
waived
and
$33,110
of
other
expenses
were
reimbursed
by
the
Adviser
pursuant
to
this
arrangement.
In
addition
the
Adviser
served
as
the
Administrator
of
the
Prede-
cessor
Fund
pursuant
to
an
Administration
Agreement
for
an
annual
fee
of
0.08%
of
the
Predecessor
Fund's
average
daily
net
assets.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
Prior
to
March
22,
2024,
Morgan
Stanley
Distribution,
Inc.
served
as
the
Predecessor
Fund's
Distributor
pursuant
to
a
Dis-
tribution
Agreement.
The
Predecessor
Fund
adopted
a
Share-
holder
Services
Plan
with
respect
to
Class
A
shares
pursuant
to
Rule
12b-1
under
the
Act.
Under
the
Shareholder
Services
Plan,
the
Predecessor
Fund
paid
the
Distributor
a
sharehold-
er
services
fee,
accrued
daily
and
paid
monthly,
at
an
annual
rate
of
0.25%
of
the
average
daily
net
assets
attributable
to
Class
A
shares.
The
Predecessor
Fund
adopted
a
Distribution
and
Shareholder
Services
Plan
with
respect
to
Class
L
shares
pursuant
to
Rule
12b-1
under
the
Act.
Under
the
Distribution
and
Shareholder
Services
Plan,
the
Predecessor
Fund
paid
the
Distributor
a
distribution
fee,
accrued
daily
and
paid
month-
ly,
at
an
annual
rate
of
0.50%
and
a
shareholder
services
fee,
accrued
daily
and
paid
monthly,
at
an
annual
rate
of
0.25%
of
the
average
daily
net
assets
attributable
to
Class
L
shares.
The
Predecessor
Fund
has
adopted
a
distribution
and
Shareholder
Services
Plan
with
respect
to
Class
C
shares
pursuant
to
Rule
12b-1
under
the
Act.
Under
the
Distribution
and
Sharehold-
er
Services
Plan,
the
Predecessor
Fund
paid
the
Distributor
a
distribution
fee,
accrued
daily
and
paid
monthly,
at
an
annual
rate
of
0.75%
and
a
shareholder
services
fee,
accrued
daily
and
paid
monthly,
at
an
annual
rate
of
0.25%
of
the
average
daily
net
assets
attributable
to
Class
C
shares.
.
D. Dividend
Disbursing
and
Transfer/Co-Transfer
Agent:
Prior
to
March
22,
2024,
the
Predecessor
Fund's
divi-
dend
disbursing
and
transfer
agent
was
SS&C
Global
Investor
&
Distribution
Solution,
Inc.
("SS&C
GIDS").
Pursuant
to
a
Transfer
Agency
Agreement,
the
Predecessor
Fund
paid
SS&C
GIDS
a
fee
based
on
the
number
of
classes,
accounts
and
trans-
action
relating
to
the
Predecessor
Fund.
Eaton
Vance
Man-
agement
(“EVM”),
an
affiliate
of
Morgan
Stanley,
provided
co-transfer
agency
and
related
services
to
the
Predecessor Fund
pursuant
to
a
Co-Transfer
Agency
Services
Agreement.
For
the period
October 1,
2023
through March
22, 2024,
co-trans-
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
25
Morgan
Stanley
ETF
Trust
fer
agency
fees
and
expenses
incurred
to
EVM,
included
in
“Transfer
Agency
Fees”
in
the
Statement
of
Operations,
amounted
to
$134,726.
Effective
March
22,
2024,
JPMorgan
Chase
Bank N.A.
("JPMorgan")
serves
as
the
Transfer
Agent
of
the
Fund.
.
E.
Custodian
Fees:
Prior
to
March
22,
2024,
State
Street
Bank
and
Trust
Company
("State
Street")
served
as
custodi-
an
for
the
Predecessor
Fund in
accordance
with
a
Custodian
Agreement. Effective
March
22,
2024,
JPMorgan
serves
as
Custodian
and
Administrator
for
the
Fund
in
accordance
with
a
Custodian
and
Administration
Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 40,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
Foreside
Fund
Services,
LLC,
which
is
the
Fund’s
Distrib-
utor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clear-
ing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corporation)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Par-
ticipant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange
("NYSE") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statement
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the six
months
ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $69,020,872
and
$13,508,414,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
or
for
In-Kind
transactions
for
the six
months ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
investment
in
the
Liquidity
Fund.
For
the
six
months ended
March
31,
2024, management
fees
paid
were
reduced
by $35,416 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
six
months ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
Affiliated
Investment
Company
Value
September
30,
2023
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
56,872
$
194,454
$
242,721
$
1
,
216
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
8,605
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
26
Morgan
Stanley
ETF
Trust
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
The
tax
year
ended
September
30,
2023 remains
subject
to
examination
by
taxing
authorities.
The
tax
character
of
distributions
paid
may
differ
from
the
character
of
distributions
shown
for
GAAP
purposes
due
to
short-term
capital
gains
being
treated
as
ordinary
income
for
tax
purposes.
The
tax
character
of
distributions
paid
during
fiscal
year 2023
and
2022
was
as
follows: 
The
amount
and
character
of
income
and
gains
to
be
distrib-
uted
are
determined
in
accordance
with
income
tax
regulations
which
may
differ
from
GAAP.
These
book/tax
differences
are
either
considered
temporary
or
permanent
in
nature. 
Temporary
differences
are
attributable
to
differing
book
and
tax
treatments
for
the
timing
of
the
recognition
of
gains
(loss-
es)
on
certain
investment
transactions
and
the
timing
of
the
deductibility
of
certain
expenses. 
The
Fund
had
no
permanent
differences
causing
reclassifica-
tions
among
the
components
of
net
assets
for
the
period ended
September
30,
2023. 
At
September
30,
2023,
the
components
of
distributable
earn-
ings
for
the
Fund
on
a
tax
basis
were
as
follows: 
At
September
30,
2023,
the
Fund
had
available
for
feder-
al
income
tax
purposes
unused
short-term
capital
losses
of
approximately
$47,151,000
and
$66,762,000
that
do
not
have
an
expiration
date. 
To
the
extent
that
capital
loss
carryforwards
are
used
to
offset
any
future
capital
gains
realized,
no
capital
gains
tax
liability
will
be
incurred
by
the
Fund
for
gains
realized
and
not
distrib-
uted.
To
the
extent
that
capital
gains
are
offset,
such
gains
will
not
be
distributed
to
the
shareholders. 
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
2023
Distributions
Paid
From:
Ordinary
Long-Term
Income
Capital
Gain
$30,270,872
$–
2022
Distributions
Paid
From:
Ordinary
Long-Term
Income
Capital
Gain
$21,875,129
$2,475,862
Undistributed
Undistributed
Ordinary
Long-Term
Income
Capital
Gain
$3,187,587
$–
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
27
Morgan
Stanley
ETF
Trust
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
To
the
extent
that
these
inter-
mediaries
exit
the
business
or
are
unable
to
or
choose
not
to
proceed
with
creation
and/or
redemption
orders
with
respect
to
the
Fund,
such
as
during
periods
of
market
stress,
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. 
Cash
Transactions
Risk:
Unlike
certain
ETFs,
the
Fund
may
effect
creations
and
redemptions
in
cash
or
partially
in
cash.
Therefore,
it
may
be
required
to
sell
portfolio
securities
and
subsequently
recognize
gains
on
such
sales
that
the
Fund
might
not
have
recognized
if
it
were
to
distribute
portfolio
securities
in-kind.
As
such,
investments
in
shares
may
be
less
tax-efficient
than
an
investment
in
an
ETF
that
distributes
portfolio
securities
entirely
in-kind. 
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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
the
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
28
Morgan
Stanley
ETF
Trust
NYSE
and
may,
therefore,
have
a
material
upward
or
down-
ward
effect
on
the
market
price
of
the
shares. 
29
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
Morgan
Stanley
ETF
Trust
The
Board
considered
the
following
factors
at
the
time
of
approval
of
the
contracts
which
occurred
prior
to
commencement
of
operations.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
the
nature
and
extent
of
the
investment
advisory
and
portfolio
management
services
to
be
pro-
vided
by
the
Adviser
under
the
investment
management
agreement
(the
“Management
Agreement”),
including
portfolio
manage-
ment,
investment
research
and
equity
and
fixed
income
securities
trading.
The
Board
also
reviewed
and
considered
the
nature
and
extent
of
the
non-advisory
services
to
be
provided
by
the
Adviser
under
the
Management
Agreement,
including
operations,
com-
pliance,
business
management
and
planning,
legal
services
and
the
provision
of
supplies,
office
space
and
utilities
at
the
Adviser’s
expense.
The
Board
also
considered
the
Adviser’s
investment
in
personnel
and
infrastructure
that
benefits
the
Fund.
The
Board
also
considered
that
the
Adviser
serves
a
variety
of
other
investment
advisory
clients
and
has
experience
overseeing
service
providers.
The
Board
reviewed
and
considered
the
qualifications
of
the
portfolio
managers
and
other
key
personnel
of
the
Adviser
who
will
provide
the
advisory
services
to
the
Fund.
The
Board
determined
that
the
Adviser's
portfolio
managers
and
key
personnel
are
well
qualified
by
education
and/or
training
and
experience
to
perform
the
services
in
an
efficient
and
professional
manner.
The
Board
concluded
that
the
nature
and
extent
of
the
advisory
services
to
be
provided
were
necessary
and
appropriate
for
the
conduct
of
the
business
and
investment
activities
of
the
Fund
and
supported
its
decision
to
approve
the
Management
Agreement.
Performance,
Fees
and
Expenses
of
the
Fund
The
Board
considered
that
the
Adviser
plans
to
launch
the
Fund
with
the
assets
of
the
Morgan
Stanley
Institutional
Fund
Trust
Core
Plus
Fixed
Income
Portfolio
(the
“Acquired
Fund”).
The
Board
further
considered
that
although
the
Fund
had
not
yet
com-
menced
operations,
it
was
expected
that
it
would
adopt
the
Acquired
Fund’s
performance
track
record
as
the
accounting
survivor
to
the
Acquired
Fund.
The
Board
reviewed
the
unitary
management
fee
(the
“management
fee
rate”)
proposed
to
be
paid
by
the
Fund
under
the
Man-
agement
Agreement,
pursuant
to
which
the
Adviser
would
pay
substantially
all
of
the
operating
expenses
of
the
Fund,
subject
to
certain
exceptions.
The
Board
considered
the
benefits
of
a
unitary
fee
structure
and
considered
the
management
fee
rate
relative
to
comparable
funds
advised
by
the
Adviser
or
its
affiliates
(including
the
Acquired
Fund),
when
applicable,
and
compared
to
peers
as
determined
by
the
Adviser.
The
Board
reviewed
the
anticipated
total
expense
ratio
of
the
Fund,
which,
due
to
the
unitary
manage-
ment
fee
structure,
was
equal
to
the
proposed
management
fee
rate.
The
Board
also
considered
the
benefits
to
the
Acquired
Fund
shareholders
arising
from
the
unitary
management
fee
structure,
that
would
result
in
the
Fund
experiencing
a
lower
total
expense
ra-
tio
as
compared
to
the
Acquired
Fund.
The
Board
also
considered
that
the
fees
charged
by
the
Fund’s
other
service
providers
would
be
paid
by
the
Adviser
under
the
unitary
management
fee
structure.
The
Board
considered
that
the
Fund
requires
the
Adviser
to
develop
processes,
invest
in
additional
resources
and
incur
additional
risks
to
successfully
manage
the
Fund
and
concluded
that
the
proposed
management
fee
rate
and
anticipated
total
expense
ratio
would
be
competitive
with
its
peer
group
averages.
Economies
of
Scale
The
Board
considered
the
growth
prospects
of
the
Fund
and
the
proposed
unitary
management
fee
schedule,
which
does
not
in-
clude
breakpoints.
The
Board
considered
that
the
unitary
management
fee
rate
was
set
at
a
level
to
anticipate
economies
of
scale
at
lower
asset
levels
before
economies
of
scale
are
achieved
(if
ever).
The
Board
also
considered
that
the
unitary
management
fee
struc-
ture
inherently
reflects
certain
economies
of
scale
because
the
management
fee
rate
is
fixed
at
a
competitive
level
over
the
contract
period
and
therefore
the
management
fee
rate
paid
by
the
Fund
will
not
increase
in
the
future
even
if
the
Fund’s
operating
costs
rise
and
assets
remain
flat
or
decrease.
The
Board
also
considered
that
increases
in
the
Fund’s
assets
would
not
lead
to
a
reduction
to
the
unitary
management
fee
rate
paid
by
the
Fund
in
the
future
even
if
economies
of
scale
were
achieved.
The
Board
considered
that
the
Fund’s
potential
growth
was
uncertain
and
concluded
that
it
would
be
premature
to
consider
economies
of
scale
as
a
factor
in
approving
the
Management
Agreement
at
the
present
time.
Profitability
of
the
Adviser
and
Affiliates
Since
the
Fund
had
not
begun
operations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
this
was
not
a
factor
that
needed
to
be
considered
at
the
present
time.
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
(cont’d)
30
Morgan
Stanley
ETF
Trust
Other
Benefits
of
the
Relationship
The
Board
considered
other
direct
and
indirect
benefits
to
the
Adviser
and/or
its
affiliates
to
be
derived
from
their
relationship
with
the
Fund
and
other
funds
advised
by
the
Adviser.
These
benefits
may
include,
among
other
things,
fees
for
trading,
distribution
and/or
shareholder
servicing
and
for
transaction
processing
and
reporting
platforms
used
by
securities
lending
agents,
and
research
received
by
the
Adviser
generated
from
commission
dollars
spent
on
funds’
portfolio
trading.
Since
the
Fund
had
not
begun
oper-
ations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
these
benefits
were
not
a
factor
that
needed
to
be
consid-
ered
at
the
present
time.
Resources
of
the
Adviser
and
Historical
Relationship
Between
the
Fund
and
the
Adviser
The
Board
considered
whether
the
Adviser
is
financially
sound
and
has
the
resources
necessary
to
perform
its
obligations
under
the
Management
Agreement.
The
Board
also
reviewed
and
considered
the
organizational
structure
of
the
Adviser,
the
policies
and
procedures
formulated
and
adopted
by
the
Adviser
for
managing
the
Fund’s
operations
and
the
Board’s
confidence
in
the
compe-
tence
and
integrity
of
the
senior
managers
and
key
personnel
of
the
Adviser.
The
Board
concluded
that
the
Adviser
has
the
financial
resources
necessary
to
fulfill
its
obligations
under
the
Management
Agreement
and
that
it
is
beneficial
for
the
Fund
to
enter
into
this
relationship
with
the
Adviser.
Other
Factors
and
Current
Trends
The
Board
considered
the
controls
and
procedures
adopted
and
implemented
by
the
Adviser
and
monitored
by
the
Fund’s
Chief
Compliance
Officer
and
concluded
that
the
conduct
of
business
by
the
Adviser
indicates
a
good
faith
effort
on
its
part
to
adhere
to
high
ethical
standards
in
the
conduct
of
the
Fund’s
business.
General
Conclusion
After
considering
and
weighing
all
of
the
above
factors,
with
various
written
materials
and
verbal
information
presented
by
the
Ad-
viser,
the
Board
concluded
that
it
would
be
in
the
best
interest
of
the
Fund
and
its
future
shareholders
to
approve
the
Management
Agreement,
which
will
remain
in
effect
for
two
years
and
thereafter
must
be
approved
annually
by
the
Board
of
the
Fund
if
it
is
to
continue
in
effect.
In
reaching
this
conclusion
the
Board
did
not
give
particular
weight
to
any
single
piece
of
information
or
factor
referenced
above.
It
is
possible
that
individual
Board
members
may
have
weighed
these
factors,
and
the
information
presented,
differently
in
reaching
their
individual
decisions
to
approve
the
Management
Agreement.
31
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program*
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
*
The
Fund
commenced
operations
subsequent
to
the
period
covered
by
the
report,
which
applied
to
other
funds
of
the
Trust
during
that
period.
However,
during
the
period
ended
March
31,
2024,
the
Program
applied
to
the
Fund.
32
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
A
copy
of
the
Proxy
Policy,
as
well
as
the
Trust’s
most
recent
proxy
voting
record
for
the
12-month
period
ended
June
30,
as
filed
with
the
SEC,
are
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
is
also
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
33
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
34
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
35
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
36
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
EVTRBONDETFSAN
6598771
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Eaton
Vance
Ultra-Short
Income
ETF
NYSE
Arca:
EVSB
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
10
Statement
of
Operations
....................................................................................
11
Statement
of
Changes
in
Net
Assets
........................................................................
12
Financial
Highlights
.........................................................................................
13
Notes
to
Financial
Statements
...............................................................................
14
Investment
Advisory
Agreement
Approval
....................................................................
19
Liquidity
Risk
Management
Program
.........................................................................
21
Important
Notices
..........................................................................................
22
U.S.
Customer
Privacy
Notice
...............................................................................
23
Trustees
and
Officers
Information
...........................................................................
26
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Eaton
Vance
Ultra-Short
Income
ETF (the
“Fund”)
performed
during
the
period
beginning October
16,
2023
(when
the
Fund
commenced
operations)
and
ended
March
31,
2024.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Eaton
Vance
Ultra-Short
Income
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include
man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
10/16/23-
3/31/24.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(10/16/23)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Eaton
Vance
Ultra-Short
Income
ETF
^
$1,000.00
$1,033.00
$1,022.22
$0.75
$0.74
0.16%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
168/366
(to
reflect
the
actual
days
in
the
period).
**
Annualized.
^
The
Fund
commenced
operations
on
October
16,
2023.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Eaton
Vance
Ultra-Short
Income
ETF
Morgan
Stanley
ETF
Trust
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Returns
for
periods
less
than
one
year
are
not
annualized.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
Bloomberg
U.S.
Universal
Index
(1)
and
the
Bloomberg
9-12
Months
Short
Treasury
Index
(2)
Cumulative
Total
Return
for
the
Period
Ended
March
31,
2024
Since
Inception
(3)
Eaton
Vance
Ultra-Short
Income
ETF
-
NAV
(4)
3.30%
Eaton
Vance
Ultra-Short
Income
ETF
-
Market
Price
(4)
3.30%
Bloomberg
U.S.
Universal
Index
7.09%
Bloomberg
9-12
Months
Short
Treasury
Index
2.49%
(1)
The
Bloomberg
U.S.
Universal
Index
represents
the
union
of
the
US
Aggregate
Index,
US
Corporate
High
Yield
Index,
Investment
Grade
144A
Index,
Eurodollar
Index,
US
Emerging
Markets
Index,
and
the
non-Employee
Retirement
Income
Security
Act
of
1974
(non-ERISA)
eligible
portion
of
the
CMBS
Index.
The
index
covers
U.S.
dollar-denominated,
taxable
bonds
that
are
rated
either
investment
grade
or
high-yield.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
The
Fund’s
primary
benchmark
index
was
changed
from
the
Bloomberg
9-12
Months
Short
Treasury
Index
to
the
Bloomberg
U.S.
Universal
Index
to
comply
with
the
regulation
that
requires
the
Fund’s
primary
benchmark
to
represent
the
overall
applicable
market.
(2)
The
Bloomberg
9-12
Months
Short
Treasury
Index
measures
the
performance
of
U.S.
Treasury
bills,
notes
and
bonds
with
a
maturity
between
nine
and
12
months.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
Historical
performance
of
the
index
illustrates
market
trends
and
does
not
represent
the
past
or
future
performance
of
the
Fund.
(3)
For
comparative
purposes,
cumulative
total
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(4)
Commenced
operations
on
October
16,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Eaton
Vance
Ultra-Short
Income
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Fixed
Income
Securities
(94.7%)
Asset-Backed
Securities
(
22.5%
)
ACHV
ABS
TRUST,
2023-4CP
6.81%,
11/25/30(a)
$
96,399‌
$
96,548‌
ACM
Auto
Trust,
2023-2A
7.97%,
6/20/30(a)
234,412‌
236,108‌
Amur
Equipment
Finance
Receivables
XII
LLC,
2023-1A
6.09%,
12/20/29(a)
90,663‌
91,262‌
Avant
Loans
Funding
Trust,
2021-REV1
1.21%,
7/15/30(a)
5,334‌
5,327‌
Bank
of
America
Auto
Trust,
2023-2A
5.85%,
8/17/26(a)
200,000‌
200,465‌
CarNow
Auto
Receivables
Trust,
2023-2A
7.38%,
1/15/26(a)
53,442‌
53,539‌
Chesapeake
Funding
II
LLC,
2023-2A
6.16%,
10/15/35(a)
353,644‌
355,967‌
Conn's
Receivables
Funding
LLC,
2023-A
8.01%,
1/17/28(a)
52,779‌
52,922‌
2024-A
7.05%,
1/16/29(a)
412,765‌
413,492‌
Continental
Airlines
Pass-Through
Trust,
2012-2A
4.00%,
10/29/24
263,968‌
260,804‌
Dell
Equipment
Finance
Trust,
2023-1
5.65%,
9/22/28(a)
169,157‌
169,152‌
DLLST
LLC,
2024-1A
5.33%,
1/20/26(a)
65,000‌
64,882‌
Domino's
Pizza
Master
Issuer
LLC,
2015-1A
4.47%,
10/25/45(a)
185,500‌
182,146‌
Donlen
Fleet
Lease
Funding
LLC,
2021-2
CME
Term
SOFR
1
Month
+
0.44%,
5.76%,
12/11/34(a)(b)
14,725‌
14,731‌
Driven
Brands
Funding
LLC,
2018-1A
4.74%,
4/20/48(a)
169,650‌
166,659‌
Enterprise
Fleet
Financing
LLC,
2023-1
5.51%,
1/22/29(a)
207,912‌
207,803‌
FHF
Issuer
Trust,
2023-2A
6.79%,
10/15/29(a)
193,960‌
195,899‌
Ford
Credit
Auto
Owner
Trust,
2023-B
5.57%,
6/15/26
213,117‌
213,189‌
FREED
ABS
Trust,
2022-4FP
7.58%,
12/18/29(a)
70,266‌
70,375‌
Face
Amount
Value
GLS
Auto
Select
Receivables
Trust,
2024-1A
5.24%,
3/15/30(a)
$
75,000‌
$
74,775‌
GM
Financial
Consumer
Automobile
Receivables
Trust,
2023-2
5.10%,
5/18/26
165,348‌
165,043‌
2024-1
5.12%,
2/16/27
30,000‌
29,937‌
HPEFS
Equipment
Trust,
2024-1A
5.38%,
5/20/31(a)
220,000‌
219,859‌
Hyundai
Auto
Lease
Securitization
Trust,
2022-C
4.38%,
10/15/25(a)
100,000‌
99,568‌
Invitation
Homes
Trust,
2018-SFR4
CME
Term
SOFR
1
Month
+
1.21%,
6.54%,
1/17/38(a)(b)
442,078‌
443,587‌
J.P.
Morgan
Mortgage
Trust,
2023-HE3
SOFR30A
+
1.60%,
6.92%,
5/25/54(a)(b)
68,041‌
68,540‌
LAD
Auto
Receivables
Trust,
2023-1A
5.68%,
10/15/26(a)
132,258‌
132,194‌
2023-2A
5.93%,
6/15/27(a)
94,201‌
94,306‌
2023-4A
6.21%,
10/15/26(a)
96,341‌
96,484‌
Lendbuzz
Securitization
Trust,
2024-1A
6.19%,
8/15/29(a)
100,000‌
99,909‌
LL
ABS
Trust,
2022-1A
5.05%,
11/15/29(a)
255,000‌
252,470‌
Marlette
Funding
Trust,
2023-2A
6.04%,
6/15/33(a)
92,591‌
92,550‌
2023-3A
6.49%,
9/15/33(a)
148,038‌
148,243‌
Octane
Receivables
Trust,
2022-1A
4.18%,
3/20/28(a)
306,596‌
304,159‌
Oportun
Funding
XIV
LLC,
2021-A
1.21%,
3/8/28(a)
95,350‌
92,237‌
Oportun
Issuance
Trust,
2024-1A
6.33%,
4/8/31(a)
280,330‌
280,461‌
Oscar
US
Funding
XIV
LLC,
2022-1A
2.30%,
4/10/26(a)
216,307‌
213,007‌
Oscar
US
Funding
XVI
LLC,
2024-1A
5.48%,
2/10/27(a)
265,000‌
264,808‌
Pagaya
AI
Debt
Selection
Trust,
2021-3
1.74%,
5/15/29(a)
127,237‌
126,569‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Ultra-Short
Income
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Asset-Backed
Securities
(22.5%)
(cont’d)
Prodigy
Finance
DAC,
2021-1A
CME
Term
SOFR
1
Month
+
1.36%,
6.69%,
7/25/51(a)(b)
$
592,500‌
$
588,581‌
Prosper
Marketplace
Issuance
Trust,
2023-1A
7.06%,
7/16/29(a)
210,711‌
211,440‌
2023-1A
7.48%,
7/16/29(a)
200,000‌
202,881‌
SFS
Auto
Receivables
Securitization
Trust,
2024-1A
5.35%,
6/21/27(a)
60,000‌
59,924‌
SoFi
Consumer
Loan
Program
Trust,
2023-1S
5.81%,
5/15/31(a)
374,881‌
374,715‌
Theorem
Funding
Trust,
2023-1A
7.58%,
4/15/29(a)
178,368‌
179,761‌
Vantage
Data
Centers
Issuer
LLC,
2019-1A
3.19%,
7/15/44(a)
547,041‌
541,943‌
8,509,221
Commercial
Mortgage-Backed
Securities
(
8.9%
)
BPR
Trust
CME
Term
SOFR
1
Month
+
1.90%,
7.22%,
4/15/37(a)(b)
185,000‌
186,571‌
CME
Term
SOFR
1
Month
+
3.00%,
8.33%,
5/15/39(a)(b)
200,000‌
201,577‌
BX
Commercial
Mortgage
Trust
CME
Term
SOFR
1
Month
+
0.81%,
6.14%,
9/15/36(a)(b)
200,000‌
198,950‌
CAMB
Commercial
Mortgage
Trust
CME
Term
SOFR
1
Month
+
1.37%,
6.69%,
12/15/37(a)(b)
265,000‌
265,457‌
CME
Term
SOFR
1
Month
+
1.55%,
6.87%,
12/15/37(a)(b)
300,000‌
300,516‌
Extended
Stay
America
Trust
CME
Term
SOFR
1
Month
+
1.19%,
6.52%,
7/15/38(a)(b)
297,133‌
297,841‌
CME
Term
SOFR
1
Month
+
1.49%,
6.82%,
7/15/38(a)(b)
171,880‌
172,234‌
CME
Term
SOFR
1
Month
+
1.81%,
7.14%,
7/15/38(a)(b)
91,426‌
91,584‌
FHLMC
STACR
REMIC
Trust
SOFR30A
+
1.25%,
6.57%,
3/25/44(a)(b)
200,000‌
201,000‌
SOFR30A
+
1.35%,
6.67%,
2/25/44(a)(b)
503,222‌
505,106‌
Marlette
Funding
Trust
6.50%,
4/15/33(a)
325,000‌
327,268‌
MHC
Commercial
Mortgage
Trust
CME
Term
SOFR
1
Month
+
0.92%,
6.24%,
4/15/38(a)(b)
188,747‌
188,318‌
Face
Amount
Value
ORL
Trust
CME
Term
SOFR
1
Month
+
2.35%,
7.68%,
10/19/36(a)(b)
$
200,000‌
$
201,500‌
Reach
Abs
Trust
6.30%,
2/18/31(a)
102,102‌
102,568‌
VMC
Finance
LLC
CME
Term
SOFR
1
Month
+
1.76%,
7.09%,
1/18/37(a)(b)
123,250‌
121,886‌
3,362,376
Corporate
Bonds
(
54.2%
)
Aerospace
&
Defense
(0.3%)
Boeing
Co.
(The)
4.88%,
5/1/25
100,000‌
98,905‌
Automobiles
(1.3%)
Hyundai
Capital
America
5.80%,
6/26/25(a)
175,000‌
175,460‌
6.25%,
11/3/25(a)
70,000‌
70,743‌
Volkswagen
Group
of
America
Finance
LLC
6.17%,
3/20/26(a)(b)
250,000‌
250,230‌
496,433
Banks
(21.0%)
AIB
Group
plc
4.26%,
4/10/25(a)(b)
275,000‌
274,849‌
Australia
&
New
Zealand
Banking
Group
Ltd.
5.90%,
3/18/26(a)(b)
310,000‌
310,394‌
Banco
Santander
SA
5.15%,
8/18/25
200,000‌
198,664‌
Bank
of
America
Corp.
2.46%,
10/22/25(b)
200,000‌
196,433‌
3.84%,
4/25/25(b)
875,000‌
873,810‌
Bank
of
Ireland
Group
plc
6.25%,
9/16/26(a)(b)
450,000‌
452,962‌
Barclays
plc
3.93%,
5/7/25(b)
400,000‌
399,196‌
BPCE
SA
4.63%,
7/11/24(a)
250,000‌
248,666‌
5.95%,
1/14/25(a)(b)
250,000‌
250,436‌
Citigroup,
Inc.
3.35%,
4/24/25(b)
100,000‌
99,835‌
4.14%,
5/24/25(b)
350,000‌
349,029‌
6.04%,
5/1/25(b)
500,000‌
500,217‌
Discover
Bank
2.45%,
9/12/24
250,000‌
246,327‌
HSBC
Holdings
plc
2.63%,
11/7/25(b)
410,000‌
402,013‌
ING
Groep
NV
3.55%,
4/9/24
200,000‌
199,916‌
JPMorgan
Chase
&
Co.
3.85%,
6/14/25
760,000‌
756,723‌
5.55%,
12/15/25(b)
185,000‌
184,916‌
KeyCorp
3.88%,
5/23/25(b)
240,000‌
238,928‌
PNC
Financial
Services
Group,
Inc.
(The)
5.67%,
10/28/25(b)
250,000‌
249,988‌
Royal
Bank
of
Canada
4.95%,
4/25/25
150,000‌
149,520‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Ultra-Short
Income
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(54.2%)
(cont’d)
Santander
Holdings
USA,
Inc.
3.50%,
6/7/24
$
200,000‌
$
199,126‌
Societe
Generale
SA
5.52%,
1/19/28(a)(b)
200,000‌
198,706‌
Standard
Chartered
plc
1.82%,
11/23/25(a)(b)
200,000‌
194,604‌
Swedbank
AB
6.14%,
9/12/26(a)
400,000‌
407,321‌
Truist
Financial
Corp.
5.75%,
6/9/25(b)
360,000‌
359,174‌
7,941,753
Capital
Markets
(5.1%)
Bank
of
New
York
Mellon
(The)
5.79%,
3/13/26(b)
85,000‌
85,088‌
Charles
Schwab
Corp.
(The)
3.63%,
4/1/25
175,000‌
172,025‌
Credit
Suisse
AG
3.70%,
2/21/25
250,000‌
245,784‌
7.95%,
1/9/25
250,000‌
254,202‌
Goldman
Sachs
Group,
Inc.
(The)
3.50%,
1/23/25
300,000‌
295,256‌
5.80%,
8/10/26(b)
340,000‌
341,191‌
HAT
Holdings
I
LLC/HAT
Holdings
II
LLC
6.00%,
4/15/25(a)
170,000‌
169,452‌
Stifel
Financial
Corp.
4.25%,
7/18/24
100,000‌
99,460‌
UBS
Group
AG
2.59%,
9/11/25(a)(b)
250,000‌
246,471‌
1,908,929
Chemicals
(0.7%)
Celanese
US
Holdings
LLC
6.05%,
3/15/25
110,000‌
110,239‌
Sherwin-Williams
Co.
(The)
3.13%,
6/1/24
150,000‌
149,310‌
259,549
Consumer
Finance
(5.6%)
AerCap
Ireland
Capital
DAC
1.65%,
10/29/24
160,000‌
156,125‌
Ally
Financial,
Inc.
3.88%,
5/21/24
350,000‌
348,961‌
Capital
One
Financial
Corp.
4.17%,
5/9/25(b)
750,000‌
748,485‌
Ford
Motor
Credit
Co.
LLC
5.13%,
6/16/25
400,000‌
396,536‌
General
Motors
Financial
Co.,
Inc.
3.95%,
4/13/24
100,000‌
99,916‌
6.70%,
4/7/25(b)
350,000‌
352,489‌
2,102,512
Diversified
Telecommunication
Services
(1.3%)
AT&T,
Inc.
6.76%,
6/12/24(b)
475,000‌
475,823‌
Electric
Utilities
(2.5%)
NextEra
Energy
Capital
Holdings,
Inc.
5.75%,
9/1/25
350,000‌
351,619‌
Face
Amount
Value
6.05%,
3/1/25
$
425,000‌
$
426,751‌
Southern
Co.
(The)
4.48%,
8/1/24(c)
150,000‌
149,269‌
927,639
Electronic
Equipment,
Instruments
&
Components
(0.7%)
TD
SYNNEX
Corp.
1.25%,
8/9/24
269,000‌
264,669‌
Entertainment
(0.9%)
Warnermedia
Holdings,
Inc.
6.41%,
3/15/26
350,000‌
350,007‌
Financial
Services
(1.6%)
Enact
Holdings,
Inc.
6.50%,
8/15/25(a)
375,000‌
375,303‌
Synchrony
Bank
5.40%,
8/22/25
250,000‌
247,791‌
623,094
Food
Products
(1.3%)
Campbell
Soup
Co.
5.30%,
3/20/26
190,000‌
190,222‌
JDE
Peet's
NV
0.80%,
9/24/24(a)
310,000‌
302,360‌
492,582
Health
Care
Providers
&
Services
(0.8%)
Centene
Corp.
4.25%,
12/15/27
80,000‌
76,338‌
HCA,
Inc.
5.38%,
2/1/25
225,000‌
224,403‌
300,741
Insurance
(2.1%)
Athene
Global
Funding
2.50%,
1/14/25(a)
350,000‌
341,355‌
GA
Global
Funding
Trust
6.75%,
4/11/25(a)(b)
450,000‌
452,430‌
793,785
Multi-Utilities
(0.8%)
Algonquin
Power
&
Utilities
Corp.
5.37%,
6/15/26(c)
195,000‌
194,003‌
Dominion
Energy,
Inc.
3.30%,
3/15/25
100,000‌
97,939‌
291,942
Oil,
Gas
&
Consumable
Fuels
(2.7%)
Cheniere
Corpus
Christi
Holdings
LLC
5.88%,
3/31/25
90,000‌
90,038‌
Midwest
Connector
Capital
Co.
LLC
3.90%,
4/1/24(a)
425,000‌
425,000‌
Occidental
Petroleum
Corp.
6.95%,
7/1/24
250,000‌
250,534‌
Williams
Cos.,
Inc.
(The)
4.55%,
6/24/24
275,000‌
274,286‌
1,039,858
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Ultra-Short
Income
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Face
Amount
Value
Corporate
Bonds
(54.2%)
(cont’d)
Passenger
Airlines
(0.6%)
Delta
Air
Lines,
Inc./SkyMiles
IP
Ltd.
4.50%,
10/20/25(a)
$
225,000‌
$
222,756‌
Professional
Services
(0.8%)
Concentrix
Corp.
6.65%,
8/2/26
295,000‌
297,371‌
Specialized
REITs
(0.4%)
EPR
Properties
4.50%,
4/1/25
150,000‌
147,809‌
Technology
Hardware,
Storage
&
Peripherals
(0.9%)
Hewlett
Packard
Enterprise
Co.
5.90%,
10/1/24
350,000‌
350,581‌
Textiles,
Apparel
&
Luxury
Goods
(0.5%)
Tapestry,
Inc.
7.05%,
11/27/25
175,000‌
178,679‌
Trading
Companies
&
Distributors
(0.9%)
Aviation
Capital
Group
LLC
5.50%,
12/15/24(a)
351,000‌
349,741‌
Wireless
Telecommunication
Services
(1.4%)
Sprint
LLC
7.13%,
6/15/24
275,000‌
275,643‌
7.63%,
2/15/25
100,000‌
101,248‌
T-Mobile
USA,
Inc.
3.50%,
4/15/25
175,000‌
171,605‌
548,496
20,463,654
U.S.
Government
and
Agency
Securities
(
9.1%
)
U.S.
Treasury
Bills
0.00%,
8/1/24
1,750,000‌
1,719,375‌
0.00%,
8/8/24
1,750,000‌
1,717,901‌
3,437,276
Total
Fixed
Income
Securities
(Cost
$35,663,248)
35,772,527
Shares
Short-Term
Investments
(5.5%)
Investment
Company
(
0.6%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(See
Note
G)
(Cost
$244,061)
244,061
244,061
Face
Amount
Commercial
Paper
(
4.9%
)
Crown
Castle,
Inc.
5.65%,
4/23/24
$
190,000‌
189,204‌
Glencore
Funding
LLC
5.58%,
6/20/24
290,000‌
286,237‌
Harley-Davidson
Financial
Services,
Inc.
6.08%,
5/2/24
150,000‌
149,166‌
Face
Amount
Value
HSBC
USA,
Inc.
6.49%,
10/11/24
$
250,000‌
$
242,438‌
International
Flavors
&
Fragrances,
Inc.
5.43%,
4/2/24
180,000‌
179,865‌
Nutrien
Ltd.
5.62%,
5/28/24(a)
360,000‌
356,612‌
Rogers
Communications,
Inc.
5.57%,
5/2/24(a)
190,000‌
188,973‌
Svenska
Handelsbanken
AB
5.90%,
9/18/24(a)
250,000‌
243,659‌
Total
Commercial
Paper
(Cost
$1,835,882)
1,836,154
Total
Short-Term
Investments
(Cost
$2,079,943)
2,080,215
Total
Investments
(100.2%)
(Cost
$37,743,191)
(d)
37,852,742
Liabilities
in
Excess
of
Other
Assets
(-0.2%)
(71,857)
Net
Assets
(100.0%)
$37,780,885
(a)
144A
security
Certain
conditions
for
public
sale
may
exist.
Unless
otherwise
noted,
these
securities
are
deemed
to
be
liquid.
(b)
Floating
or
variable
rate
securities:
The
rates
disclosed
are
as
of
March
31,
2024.
For
securities
based
on
a
published
reference
rate
and
spread,
the
reference
rate
and
spread
are
indicated
in
the
description
in
the
Portfolio
of
Investments.
Certain
variable
rate
securities
may
not
be
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.
These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description
in
the
Portfolio
of
Investments.
(c)
Multi-step
Coupon
rate
changes
in
predetermined
increments
to
maturity.
Rate
disclosed
is
as
of
March
31,
2024.
Maturity
date
disclosed
is
the
ultimate
maturity
date.
(d)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$37,743,191.
The
aggregate
gross
unrealized
appreciation
is
$117,080
and
the
aggregate
gross
unrealized
depreciation
is
$7,529,
resulting
in
net
unrealized
appreciation
of
$109,551.
CME
Chicago
Mercantile
Exchange
FHLMC
Federal
Home
Loan
Mortgage
Corp.
REIT
Real
Estate
Investment
Trust
REMIC
Real
Estate
Mortgage
Investment
Conduit
SOFR
Secured
Overnight
Financing
Rate
SOFR30A
Secured
Overnight
Financing
Rate
30
Day
Average
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Eaton
Vance
Ultra-Short
Income
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Asset-Backed
Securities
22.5‌
%
Other*
22.5‌
Banks
21.0‌
U.S.
Government
and
Agency
Securities
9.1‌
Commercial
Mortgage-Backed
Securities
8.9‌
Consumer
Finance
5.6‌
Short-Term
Investments
5.4‌
Capital
Markets
5.0‌
Total
Investments
100.0‌%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Ultra-Short
Income
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$37,499,130)
$
37,608,681
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$244,061)
244,061
Total
Investments
in
Securities,
at
Value
(Cost
$37,743,191)
37,852,742
Cash
1,213
Due
from
Custodian
113,599
Receivable
for
Investments
Sold
73,366
Interest
Receivable
265,930
Dividends
Receivable
2,799
Total
Assets
38,309,649
Liabilities:
Payable
for
Investments
Purchased
346,682
Payable
for
Management
Fee
5,302
Payable
for
Dividends
to
Shareholders
176,780
Total
Liabilities
528,764
Net
Assets
$
37,780,885
Net
Assets
Consist
of:
Paid-in-Capital
$
37,639,517
Total
Distributable
Earnings
141,368
Net
Assets
$
37,780,885
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
750,000
Net
Asset
Value
Per
Share
$
50
.37
Semi-Annual
Report
March
31,
2024
(unaudited)
Eaton
Vance
Ultra-Short
Income
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Period
from
October
16,
2023
^
to
March
31,
2024
Investment
Income:
Interest
from
Securities
of
Unaffiliated
Issuers
$
681,573
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
19,862
Total
Investment
Income
701,435
Expenses:
Management
Fee
(Note
B)
19,945
Total
Expenses
19,945
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(
642
)
Net
Expenses
19,303
Net
Investment
Income
682,132
Realized
Gain
(Loss):
Investments
Sold
14,708
Net
Realized
Gain
14,708
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
109,551
Net
Change
in
Unrealized
Appreciation
(Depreciation)
109,551
Net
Realized
Gain
and
Change
in
Unrealized
Appreciation
(Depreciation)
124,259
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
806,391
Semi-Annual
Report
March
31,
2024
Eaton
Vance
Ultra-Short
Income
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Changes
in
Net
Assets
Period
from
October
16,
2023
^
to
March
31,
2024
(unaudited)
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
682,132
Net
Realized
Gain
14,708
Net
Change
in
Unrealized
Appreciation
(Depreciation)
109,551
Net
Increase
in
Net
Assets
Resulting
from
Operations
806,391
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(
665,023
)
Total
Dividends
and
Distributions
to
Shareholders
(
665,023
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Subscribed
In-Kind
17,639,517
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
37,639,517
Total
Increase
in
Net
Assets
37,780,885
Net
Assets:
Beginning
of
Period
End
of
Period
$
37,780,885
Capital
Share
Transactions:
Beginning
of
Period
Shares
Subscribed
400,000
Shares
Subscribed
In-Kind
350,000
Shares
Outstanding,
End
of
Period
Net
Increase
in
750,000
^
Commencement
of
Operations
(1)
Total
consists
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Eaton
Vance
Ultra-Short
Income
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Period
from
October
16,
2023
(1)
to
March
31,
2024
(unaudited)
Net
Asset
Value,
Beginning
of
Period
$
50
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
1
.34‌
Net
Realized
and
Unrealized
Gain
0
.30‌
Total
from
Investment
Operations
1
.64‌
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
1
.27‌
)
Net
Asset
Value,
End
of
Period
$
50
.37‌
Total
Return
(3)
3
.30‌
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$37,781
Net
Assets,
End
of
Period
(Thousands)
$
37,781‌
Ratio
of
Expenses
0
.16‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
5
.79‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.01‌
%
(5)
Portfolio
Turnover
Rate
35‌
%
(4)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
14
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
"Trust")
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to
establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Act").
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Eaton
Vance
Ultra-Short
Income
ETF (the
"Fund"),
which
seeks
to
maximize
income,
to
the
extent
consistent
with
preservation
of
capital.
The
Fund
is
diversified. 
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteris-
tics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
bro-
kers/dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable
brokers/dealers;
(2)
when
market
quotations
are
not
readily
available,
as
de-
fined
by
Rule
2a-5
under
the
Act,
including
circumstanc-
es
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
mar-
ket
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees;
(3)
investments
in
mutual
funds,
including
the
Morgan
Stan-
ley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
 Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
15
Morgan
Stanley
ETF
Trust
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
4.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
monthly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
5.
Security
Transactions
and Income:
 Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
income
at
fair
value.
Interest
income
is
recog-
nized
on
the
accrual
basis
(except
where
collection
is
in
doubt)
net
of
applicable
withholding
taxes.
Discounts
are
accreted
and
premiums
are
amortized
over
the
life
of
the
respective
securities.
B.
Management Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
invest-
ments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.17% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays sub-
stantially
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.
.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:
Fixed
Income
Securities
Asset-Backed
Securities
$
$
8,509
$
$
8,509
Commercial
Mortgage-Backed
Securities
3,363
3,363
Corporate
Bonds
20,464
20,464
U.S.
Government
and
Agency
Securities
3,437
3,437
Total
Fixed
Income
Securities
35,773
35,773
Short-Term
Investments
Investment
Company
244
244
Commercial
Paper
1,836
1,836
Total
Short-Term
Investments
244
1,836
2,080
Total
Assets
$244
$37,609
$—
$37,853
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
16
Morgan
Stanley
ETF
Trust
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 25,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statement
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the
period ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-
term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $31,968,864
and
$4,949,367,
respectively.
For
the
period
ended
March
31,
2024,
purchas-
es
and
sales
of
long-term
U.S
Government
securities
were
$1,242,818
and
$
1,242,701,
respectively. There
were
no
pur-
chases
and
sales
related
to
In-Kind
transactions
for
the
period
ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
invest-
ment
in
the
Liquidity
Fund.
For
the
period ended
March
31,
2024, management
fees
paid
were
reduced
by $642 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
period ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
Affiliated
Investment
Company
Value
October
16,
2023
*
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
$
30,833
$
30,589
$
20
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
244
*
Commencement
of
Operations.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
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,
such
as
during
periods
of
market
stress,
and
no
other
authorized
participant
creates
or
redeems,
shares
may
trade
at
a
discount
to
NAV
and
possibly
face
trading
halts
and/
or
delisting.
Cash
Transactions
Risk:
Unlike
certain
ETFs,
the
Fund
may
effect
creations
and
redemptions
in
cash
or
partially
in
cash.
Therefore,
it
may
be
required
to
sell
portfolio
securities
and
subsequently
recognize
gains
on
such
sales
that
the
Fund
might
not
have
recognized
if
it
were
to
distribute
portfolio
securities
in-kind.
As
such,
investments
in
shares
may
be
less
tax-efficient
than
an
investment
in
an
ETF
that
distributes
portfolio
securities
entirely
in-kind. 
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
18
Morgan
Stanley
ETF
Trust
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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.
19
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
Morgan
Stanley
ETF
Trust
The
Board
considered
the
following
factors
at
the
time
of
approval
of
the
contracts
which
occurred
prior
to
commencement
of
operations.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
the
nature
and
extent
of
the
investment
advisory
and
portfolio
management
services
to
be
pro-
vided
by
the
Adviser
under
the
investment
management
agreement
(the
“Management
Agreement”),
including
portfolio
manage-
ment,
investment
research
and
equity
and
fixed
income
securities
trading.
The
Board
also
reviewed
and
considered
the
nature
and
extent
of
the
non-advisory
services
to
be
provided
by
the
Adviser
under
the
Management
Agreement,
including
operations,
com-
pliance,
business
management
and
planning,
legal
services
and
the
provision
of
supplies,
office
space
and
utilities
at
the
Adviser’s
expense.
The
Board
also
considered
the
Adviser’s
investment
in
personnel
and
infrastructure
that
benefits
the
Fund.
The
Board
also
considered
that
the
Adviser
serves
a
variety
of
other
investment
advisory
clients
and
has
experience
overseeing
service
providers.
The
Board
reviewed
and
considered
the
qualifications
of
the
portfolio
managers
and
other
key
personnel
of
the
Adviser
who
will
provide
the
advisory
services
to
the
Fund.
The
Board
determined
that
the
Adviser's
portfolio
managers
and
key
personnel
are
well
qualified
by
education
and/or
training
and
experience
to
perform
the
services
in
an
efficient
and
professional
manner.
The
Board
concluded
that
the
nature
and
extent
of
the
advisory
services
to
be
provided
were
necessary
and
appropriate
for
the
conduct
of
the
business
and
investment
activities
of
the
Fund
and
supported
its
decision
to
approve
the
Management
Agreement.
Performance,
Fees
and
Expenses
of
the
Fund
The
Board
considered
that
the
Adviser
plans
to
arrange
for
a
public
offering
of
shares
of
the
Fund
to
raise
assets
for
investment
and
that
the
offering
had
not
yet
begun
and
concluded
that,
since
the
Fund
currently
had
no
assets
to
invest
(other
than
seed
capital
required
under
the
Investment
Company
Act)
and
had
no
track
record
of
performance,
this
was
not
a
factor
it
needed
to
address
at
the
present
time.
The
Board
reviewed
the
unitary
management
fee
(the
“management
fee
rate”)
proposed
to
be
paid
by
the
Fund
under
the
Manage-
ment
Agreement,
pursuant
to
which
the
Adviser
would
pay
substantially
all
of
the
operating
expenses
of
the
Fund,
subject
to
certain
exceptions.
The
Board
considered
the
benefits
of
a
unitary
fee
structure
and
considered
the
management
fee
rate
relative
to
compa-
rable
funds
advised
by
the
Adviser
or
its
affiliates,
when
applicable,
and
compared
to
peers
as
determined
by
the
Adviser.
The
Board
reviewed
the
anticipated
total
expense
ratio
of
the
Fund,
which,
due
to
the
unitary
management
fee
structure,
was
equal
to
the
proposed
management
fee
rate.
The
Board
also
considered
that
the
fees
charged
by
the
Fund’s
other
service
providers
would
be
paid
by
the
Adviser
under
the
unitary
management
fee
structure.
The
Board
considered
that
the
Fund
requires
the
Adviser
to
develop
processes,
invest
in
additional
resources
and
incur
additional
risks
to
successfully
manage
the
Fund
and
concluded
that
the
proposed
management
fee
rate
and
anticipated
total
expense
ratio
would
be
competitive
with
its
peer
group
averages.
Economies
of
Scale
The
Board
considered
the
growth
prospects
of
the
Fund
and
the
proposed
unitary
management
fee
schedule,
which
does
not
in-
clude
breakpoints.
The
Board
considered
that
the
unitary
management
fee
rate
was
set
at
a
level
to
anticipate
economies
of
scale
at
lower
asset
levels
before
economies
of
scale
are
achieved
(if
ever).
The
Board
also
considered
that
the
unitary
management
fee
struc-
ture
inherently
reflects
certain
economies
of
scale
because
the
management
fee
rate
is
fixed
at
a
competitive
level
over
the
contract
period
and
therefore
the
management
fee
rate
paid
by
the
Fund
will
not
increase
in
the
future
even
if
the
Fund’s
operating
costs
rise
and
assets
remain
flat
or
decrease.
The
Board
also
considered
that
increases
in
the
Fund’s
assets
would
not
lead
to
a
reduction
to
the
unitary
management
fee
rate
paid
by
the
Fund
in
the
future
even
if
economies
of
scale
were
achieved.
The
Board
considered
that
the
Fund’s
potential
growth
was
uncertain
and
concluded
that
it
would
be
premature
to
consider
economies
of
scale
as
a
factor
in
approving
the
Management
Agreement
at
the
present
time.
Profitability
of
the
Adviser
and
Affiliates
Since
the
Fund
had
not
begun
operations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
this
was
not
a
factor
that
needed
to
be
considered
at
the
present
time.
Other
Benefits
of
the
Relationship
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
(cont’d)
20
Morgan
Stanley
ETF
Trust
The
Board
considered
other
direct
and
indirect
benefits
to
the
Adviser
and/or
its
affiliates
to
be
derived
from
their
relationship
with
the
Fund
and
other
funds
advised
by
the
Adviser.
These
benefits
may
include,
among
other
things,
fees
for
trading,
distribution
and/or
shareholder
servicing
and
for
transaction
processing
and
reporting
platforms
used
by
securities
lending
agents,
and
research
received
by
the
Adviser
generated
from
commission
dollars
spent
on
funds’
portfolio
trading.
Since
the
Fund
had
not
begun
oper-
ations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
these
benefits
were
not
a
factor
that
needed
to
be
consid-
ered
at
the
present
time.
Resources
of
the
Adviser
and
Historical
Relationship
Between
the
Fund
and
the
Adviser
The
Board
considered
whether
the
Adviser
is
financially
sound
and
has
the
resources
necessary
to
perform
its
obligations
under
the
Management
Agreement.
The
Board
also
reviewed
and
considered
the
organizational
structure
of
the
Adviser,
the
policies
and
procedures
formulated
and
adopted
by
the
Adviser
for
managing
the
Fund’s
operations
and
the
Board’s
confidence
in
the
compe-
tence
and
integrity
of
the
senior
managers
and
key
personnel
of
the
Adviser.
The
Board
concluded
that
the
Adviser
has
the
financial
resources
necessary
to
fulfill
its
obligations
under
the
Management
Agreement
and
that
it
is
beneficial
for
the
Fund
to
enter
into
this
relationship
with
the
Adviser.
Other
Factors
and
Current
Trends
The
Board
considered
the
controls
and
procedures
adopted
and
implemented
by
the
Adviser
and
monitored
by
the
Fund’s
Chief
Compliance
Officer
and
concluded
that
the
conduct
of
business
by
the
Adviser
indicates
a
good
faith
effort
on
its
part
to
adhere
to
high
ethical
standards
in
the
conduct
of
the
Fund’s
business.
General
Conclusion
After
considering
and
weighing
all
of
the
above
factors,
with
various
written
materials
and
verbal
information
presented
by
the
Ad-
viser,
the
Board
concluded
that
it
would
be
in
the
best
interest
of
the
Fund
and
its
future
shareholders
to
approve
the
Management
Agreement,
which
will
remain
in
effect
for
two
years
and
thereafter
must
be
approved
annually
by
the
Board
of
the
Fund
if
it
is
to
continue
in
effect.
In
reaching
this
conclusion
the
Board
did
not
give
particular
weight
to
any
single
piece
of
information
or
factor
referenced
above.
It
is
possible
that
individual
Board
members
may
have
weighed
these
factors,
and
the
information
presented,
differently
in
reaching
their
individual
decisions
to
approve
the
Management
Agreement.
21
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program*
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
*
The
Fund
commenced
operations
subsequent
to
the
period
covered
by
the
report,
which
applied
to
other funds
of
the
Trust
during
that
period.
However,
during
the
period
ended
March
31,
2024,
the
Program
applied
to
the
Fund.
22
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
A
copy
of
the
Proxy
Policy,
as
well
as
the
Trust’s
most
recent
proxy
voting
record
for
the
12-month
period
ended
June
30,
as
filed
with
the
SEC,
are
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
is
also
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
23
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
24
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
25
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
26
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
EVUSIETFSAN
6598579
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Parametric
Equity
Premium
Income
ETF
NYSE
Arca:
PAPI
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
9
Statement
of
Operations
....................................................................................
10
Statement
of
Changes
in
Net
Assets
........................................................................
11
Financial
Highlights
.........................................................................................
12
Notes
to
Financial
Statements
...............................................................................
13
Investment
Advisory
Agreement
Approval
....................................................................
20
Liquidity
Risk
Management
Program
.........................................................................
22
Important
Notices
..........................................................................................
23
U.S.
Customer
Privacy
Notice
...............................................................................
24
Trustees
and
Officers
Information
...........................................................................
27
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Parametric
Equity
Premium
Income
ETF (the
“Fund”)
performed
during
the
period
beginning October
16,
2023
(when
the
Fund
commenced
operations)
and
ended
March
31,
2024.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Parametric
Equity
Premium
Income
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include
man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
10/16/23-
3/31/24.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(10/16/23)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Parametric
Equity
Premium
Income
ETF
^
$1,000.00
$1,116.50
$1,021.62
$1.41
$1.35
0.29%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
168/366
(to
reflect
the
actual
days
in
the
period).
**
Annualized.
^
The
Fund
commenced
operations
on
October
16,
2023.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Parametric
Equity
Premium
Income
ETF
Morgan
Stanley
ETF
Trust
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Returns
for
periods
less
than
year
are
not
annualized.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
S&P
500
®
Index
(1)
and
the
Russell
1000
®
Value
Index
(2)
Cumulative
Total
Return
for
the
Period
Ended
March
31,
2024
Since
Inception
(3)
Parametric
Equity
Premium
Income
ETF
-
NAV
(4)
11.65%
Parametric
Equity
Premium
Income
ETF
-
Market
Price
(4)
11.77%
S&P
500
®
Index
20.99%
Russell
1000®
Value
Index
19.36%
(1)
The
Standard
&
Poor’s
500
®
Index
(S&P
500
®
Index)
measures
the
performance
of
the
large
cap
segment
of
the
U.S.
equities
market,
covering
approximately
80%
of
the
U.S.
equities
market.
The
Index
includes
500
leading
companies
in
leading
industries
of
the
U.S.
economy.
The
Index
is
unmanaged
and
its
returns
do
not
include
any
sales
charges
or
fees.
Such
costs
would
lower
performance.
It
is
not
possible
to
invest
directly
in
an
index.
The
Fund’s
primary
benchmark
index
was
changed
from
the
Russell
1000
®
Value
Index
to
the
S&P
500
®
Index
to
comply
with
the
regulation
that
requires
the
Fund’s
primary
benchmark
to
represent
the
overall
applicable
market.
(2)
The
Russell
1000
®
Value
Index
is
an
index
that
measures
the
performance
of
those
Russell
1000
companies
with
lower
price-to-book
ratios
and
lower
forecasted
growth
values.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
Historical
performance
of
the
index
illustrates
market
trends
and
does
not
represent
the
past
or
future
performance
of
the
Fund.
(3)
For
comparative
purposes,
cumulative
total
since
inception
returns
listed
for
the
Indexes
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(4)
Commenced
operations
on
October
16,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Parametric
Equity
Premium
Income
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Common
Stocks
(99.2%)
Aerospace
&
Defense
(
2
.9
%
)
General
Dynamics
Corp.
839
$
237,009
Huntington
Ingalls
Industries,
Inc.
841
245,126
L3Harris
Technologies,
Inc.
1,176
250,606
Lockheed
Martin
Corp.
464
211,060
RTX
Corp.
2,847
277,668
1,221,469
Air
Freight
&
Logistics
(
0
.3
%
)
United
Parcel
Service,
Inc.,
Class
 B
716
106,419
Automobile
Components
(
1
.0
%
)
BorgWarner,
Inc.
4,554
158,206
Gentex
Corp.
6,704
242,148
400,354
Automobiles
(
0
.1
%
)
Ford
Motor
Co.
2,475
32,868
Banks
(
2
.6
%
)
Cullen/Frost
Bankers,
Inc.
2,762
310,918
FNB
Corp.
17,510
246,891
Prosperity
Bancshares,
Inc.
3,410
224,310
Regions
Financial
Corp.
4,708
99,056
United
Bankshares,
Inc.
6,348
227,195
1,108,370
Beverages
(
2
.1
%
)
Brown-Forman
Corp.,
Class
 B
3,899
201,267
Coca-Cola
Co.
(The)
3,852
235,665
Keurig
Dr
Pepper,
Inc.
7,254
222,480
PepsiCo,
Inc.
1,274
222,963
882,375
Biotechnology
(
1
.0
%
)
AbbVie,
Inc.
1,331
242,375
Gilead
Sciences,
Inc.
2,538
185,909
428,284
Building
Products
(
0
.7
%
)
Johnson
Controls
International
plc
4,828
315,365
Capital
Markets
(
1
.4
%
)
Artisan
Partners
Asset
Management,
Inc.,
Class
 A
5,851
267,800
CME
Group,
Inc.
302
65,018
T
Rowe
Price
Group,
Inc.
2,145
261,518
594,336
Chemicals
(
6
.1
%
)
Air
Products
and
Chemicals,
Inc.
659
159,656
Ashland,
Inc.
2,736
266,404
Corteva,
Inc.
4,209
242,733
Dow,
Inc.
4,186
242,495
DuPont
de
Nemours,
Inc.
959
73,527
Eastman
Chemical
Co.
2,950
295,649
FMC
Corp.
6,255
398,443
Huntsman
Corp.
9,122
237,446
Linde
plc
535
248,411
LyondellBasell
Industries
NV,
Class
 A
2,240
229,107
PPG
Industries,
Inc.
1,185
171,707
2,565,578
Shares
Value
Communications
Equipment
(
1
.0
%
)
Cisco
Systems,
Inc.
3,874
$
193,351
Juniper
Networks,
Inc.
6,142
227,623
420,974
Construction
&
Engineering
(
0
.7
%
)
MDU
Resources
Group,
Inc.
10,944
275,789
Consumer
Staples
Distribution
&
Retail
(
1
.1
%
)
Costco
Wholesale
Corp.
322
235,907
Walmart,
Inc.
3,906
235,024
470,931
Containers
&
Packaging
(
2
.8
%
)
Amcor
plc
23,909
227,374
AptarGroup,
Inc.
1,648
237,131
International
Paper
Co.
5,605
218,707
Packaging
Corp.
of
America
1,355
257,152
Sonoco
Products
Co.
3,938
227,774
1,168,138
Distributors
(
0
.8
%
)
Genuine
Parts
Co.
590
91,409
LKQ
Corp.
4,870
260,106
351,515
Diversified
Telecommunication
Services
(
1
.1
%
)
AT&T,
Inc.
12,990
228,624
Verizon
Communications,
Inc.
6,023
252,725
481,349
Electric
Utilities
(
4
.6
%
)
Alliant
Energy
Corp.
4,100
206,640
American
Electric
Power
Co.,
Inc.
2,735
235,483
Duke
Energy
Corp.
2,299
222,336
Evergy,
Inc.
4,091
218,378
OGE
Energy
Corp.
5,985
205,286
Portland
General
Electric
Co.
4,996
209,832
PPL
Corp.
8,533
234,913
Southern
Co.
(The)
3,069
220,170
Xcel
Energy,
Inc.
3,470
186,513
1,939,551
Electrical
Equipment
(
0
.4
%
)
Emerson
Electric
Co.
1,482
168,088
Electronic
Equipment,
Instruments
&
Components
(
1
.4
%
)
Amphenol
Corp.,
Class
 A
2,485
286,645
Corning,
Inc.
9,137
301,155
587,800
Energy
Equipment
&
Services
(
0
.6
%
)
Baker
Hughes
Co.,
Class
 A
7,303
244,651
Financial
Services
(
1
.7
%
)
MGIC
Investment
Corp.
12,126
271,137
Radian
Group,
Inc.
7,168
239,913
Western
Union
Co.
(The)
13,908
194,434
705,484
Food
Products
(
4
.4
%
)
Archer-Daniels-Midland
Co.
3,848
241,693
Bunge
Global
SA
1,451
148,756
Cal-Maine
Foods,
Inc.
4,208
247,641
Conagra
Brands,
Inc.
7,408
219,573
Hormel
Foods
Corp.
8,432
294,192
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Parametric
Equity
Premium
Income
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Food
Products
(cont’d)
Ingredion,
Inc.
2,228
$
260,342
Kellanova
4,093
234,488
Kraft
Heinz
Co.
(The)
5,771
212,950
1,859,635
Gas
Utilities
(
2
.3
%
)
Atmos
Energy
Corp.
1,827
217,176
National
Fuel
Gas
Co.
5,727
307,654
New
Jersey
Resources
Corp.
4,933
211,675
ONE
Gas,
Inc.
3,254
209,981
946,486
Health
Care
Equipment
&
Supplies
(
2
.3
%
)
Abbott
Laboratories
2,238
254,371
Becton
Dickinson
&
Co.
805
199,197
Medtronic
plc
2,828
246,460
Stryker
Corp.
797
285,223
985,251
Health
Care
Providers
&
Services
(
4
.9
%
)
Cardinal
Health,
Inc.
2,111
236,221
Cencora,
Inc.
1,049
254,896
Chemed
Corp.
405
259,982
Cigna
Group
(The)
682
247,695
Laboratory
Corp.
of
America
Holdings
1,017
222,174
Patterson
Cos.,
Inc.
7,074
195,596
Premier,
Inc.,
Class
 A
10,608
234,437
Quest
Diagnostics,
Inc.
1,669
222,161
UnitedHealth
Group,
Inc.
380
187,986
2,061,148
Hotels,
Restaurants
&
Leisure
(
2
.9
%
)
Cracker
Barrel
Old
Country
Store,
Inc.
2,715
197,462
Darden
Restaurants,
Inc.
1,520
254,068
Texas
Roadhouse,
Inc.,
Class
 A
2,101
324,541
Vail
Resorts,
Inc.
965
215,031
Wendy's
Co.
(The)
10,978
206,826
1,197,928
Household
Durables
(
2
.1
%
)
Garmin
Ltd.
1,950
290,296
Leggett
&
Platt,
Inc.
8,671
166,050
MDC
Holdings,
Inc.
3,943
248,054
Whirlpool
Corp.
1,313
157,074
861,474
Household
Products
(
2
.3
%
)
Church
&
Dwight
Co.,
Inc.
2,327
242,730
Colgate-Palmolive
Co.
2,880
259,344
Kimberly-Clark
Corp.
1,732
224,034
Procter
&
Gamble
Co.
(The)
1,433
232,504
958,612
Industrial
Conglomerates
(
0
.8
%
)
3M
Co.
2,297
243,643
Honeywell
International,
Inc.
457
93,799
337,442
Insurance
(
5
.5
%
)
Aflac,
Inc.
2,545
218,514
American
Financial
Group,
Inc.
1,866
254,672
Cincinnati
Financial
Corp.
2,045
253,928
Fidelity
National
Financial,
Inc.
4,336
230,241
Shares
Value
Hartford
Financial
Services
Group,
Inc.
(The)
2,877
$
296,475
MetLife,
Inc.
625
46,319
Old
Republic
International
Corp.
7,011
215,378
Principal
Financial
Group,
Inc.
2,982
257,376
Prudential
Financial,
Inc.
2,173
255,110
Travelers
Cos.,
Inc.
(The)
1,241
285,604
2,313,617
IT
Services
(
2
.2
%
)
Accenture
plc,
Class
 A
679
235,348
Amdocs
Ltd.
2,519
227,642
Cognizant
Technology
Solutions
Corp.,
Class
 A
3,066
224,707
International
Business
Machines
Corp.
1,300
248,248
935,945
Leisure
Products
(
0
.4
%
)
Hasbro,
Inc.
2,798
158,143
Machinery
(
1
.8
%
)
Cummins,
Inc.
907
267,248
Donaldson
Co.,
Inc.
3,440
256,899
Snap-on,
Inc.
806
238,753
762,900
Media
(
1
.6
%
)
Interpublic
Group
of
Cos.,
Inc.
(The)
7,066
230,564
New
York
Times
Co.
(The),
Class
 A
4,781
206,635
Omnicom
Group,
Inc.
2,470
238,997
676,196
Metals
&
Mining
(
2
.5
%
)
Newmont
Corp.
6,097
218,516
Reliance,
Inc.
810
270,686
Royal
Gold,
Inc.
1,917
233,510
Southern
Copper
Corp.
2,885
307,310
1,030,022
Multi-Utilities
(
3
.8
%
)
Ameren
Corp.
2,668
197,325
Avista
Corp.
6,360
222,727
Consolidated
Edison,
Inc.
2,323
210,952
Dominion
Energy,
Inc.
6,104
300,256
Public
Service
Enterprise
Group,
Inc.
3,355
224,047
Sempra
2,941
211,252
WEC
Energy
Group,
Inc.
2,518
206,778
1,573,337
Oil,
Gas
&
Consumable
Fuels
(
10
.9
%
)
Antero
Midstream
Corp.
16,394
230,500
Chevron
Corp.
1,270
200,330
Civitas
Resources,
Inc.
1,981
150,378
ConocoPhillips
1,671
212,685
Coterra
Energy,
Inc.
6,708
187,019
CVR
Energy,
Inc.
6,635
236,604
Devon
Energy
Corp.
8,735
438,322
Diamondback
Energy,
Inc.
1,245
246,722
DT
Midstream,
Inc.
3,759
229,675
EOG
Resources,
Inc.
1,902
243,152
Exxon
Mobil
Corp.
1,895
220,275
HF
Sinclair
Corp.
3,881
234,296
Kinder
Morgan,
Inc.
11,939
218,961
Magnolia
Oil
&
Gas
Corp.,
Class
 A
8,862
229,969
ONEOK,
Inc.
2,332
186,956
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Parametric
Equity
Premium
Income
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Oil,
Gas
&
Consumable
Fuels
(cont’d)
Phillips
66
1,886
$
308,059
Pioneer
Natural
Resources
Co.
838
219,975
Valero
Energy
Corp.
1,980
337,966
Williams
Cos.,
Inc.
(The)
5,919
230,663
4,562,507
Pharmaceuticals
(
2
.7
%
)
Bristol-Myers
Squibb
Co.
4,394
238,287
Johnson
&
Johnson
1,330
210,393
Merck
&
Co.,
Inc.
1,760
232,232
Pfizer,
Inc.
7,690
213,397
Royalty
Pharma
plc,
Class
 A
7,476
227,046
1,121,355
Professional
Services
(
2
.0
%
)
Automatic
Data
Processing,
Inc.
253
63,184
ManpowerGroup,
Inc.
3,419
265,451
Paychex,
Inc.
2,492
306,018
Robert
Half,
Inc.
2,754
218,337
852,990
Semiconductors
&
Semiconductor
Equipment
(
1
.6
%
)
Analog
Devices,
Inc.
1,060
209,657
Skyworks
Solutions,
Inc.
1,950
211,224
Texas
Instruments,
Inc.
1,432
249,469
670,350
Software
(
0
.5
%
)
Dolby
Laboratories,
Inc.,
Class
 A
2,449
205,153
Specialty
Retail
(
0
.6
%
)
Best
Buy
Co.,
Inc.
2,940
241,168
Technology
Hardware,
Storage
&
Peripherals
(
1
.2
%
)
Hewlett
Packard
Enterprise
Co.
5,515
97,781
HP,
Inc.
7,692
232,452
Xerox
Holdings
Corp.
9,950
178,105
508,338
Textiles,
Apparel
&
Luxury
Goods
(
3
.0
%
)
Carter's,
Inc.
3,167
268,182
Columbia
Sportswear
Co.
2,908
236,071
Steven
Madden
Ltd.
5,264
222,562
Tapestry,
Inc.
6,690
317,641
VF
Corp.
12,772
195,923
1,240,379
Tobacco
(
0
.9
%
)
Altria
Group,
Inc.
3,816
166,454
Philip
Morris
International,
Inc.
2,208
202,297
368,751
Trading
Companies
&
Distributors
(
1
.6
%
)
Fastenal
Co.
3,402
262,430
MSC
Industrial
Direct
Co.,
Inc.,
Class
 A
771
74,818
Watsco,
Inc.
736
317,930
655,178
Total
Common
Stocks
(Cost
$37,956,612)
41,553,993
Shares
Value
Short-Term
Investment
(
1
.3
%
)
Investment
Company
(1.3%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(
See
Note
G
)
(Cost
$565,110)
565,110
$
565,110
Total
Investments
(
100
.5
%
)
(Cost
$
38,521,722
)
(a)
42,119,103
Total
Written
Options
(-0.2%)
(Premiums
Received
$
(
95,106
)
)
(85,664)
Other
Assets
in
Excess
of
Liabilities
((0.3)%)
(104,867)
NET
ASSETS
(100.0%)
$41,928,572
(a)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$38,521,722.
The
aggregate
gross
unrealized
appreciation
is
$3,748,644
and
the
aggregate
gross
unrealized
depreciation
is
$151,263,
resulting
in
net
unrealized
appreciation
of
$3,597,381.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Parametric
Equity
Premium
Income
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Call
Options
Written:
The
Fund
had
the
following
call
options
written
open
at
March
31,
2024:
Description
Number
of
Contracts
Exercise
Price
Expiration
Date
Notional
Amount
Value
Premiums
Received
Unrealized
Appreciation/
(Depreciation)
SPDR
S&P
500
ETF
Trust
267
USD
523
4/01/24
$
13,965,969
$
(
44,206
)
$
(
36,425
)
$
(
7,781
)
SPDR
S&P
500
ETF
Trust
265
USD
531
4/05/24
13,861,355
(
11,135
)
(
27,125
)
15,990
SPDR
S&P
500
ETF
Trust
264
USD
531
4/10/24
13,809,048
(
30,323
)
(
31,556
)
1,233
Total
$(85,664)
$(95,106)
$9,442
USD
United
States
Dollar
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
77
.6
%
Oil,
Gas
&
Consumable
Fuels
10
.8
Chemicals
6
.1
Insurance
5
.5
Total
Investments
100
.0
%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Parametric
Equity
Premium
Income
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$37,956,612)
$
41,553,993
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$565,110)
565,110
Total
Investments
in
Securities,
at
Value
(Cost
$38,521,722)
42,119,103
Cash
15,324
Receivable
for
Investments
Sold
13,036
Receivable
for
Fund
units
sold
5,409,972
Dividends
Receivable
67,246
Total
Assets
47,624,681
Liabilities:
Written
options
outstanding,
at
value
(premiums
received
$95,106)
85,664
Payable
for
Investments
Purchased
5,359,230
Payable
for
Management
Fee
8,089
Payable
for
Dividends
to
Shareholders
243,126
Total
Liabilities
5,696,109
Net
Assets
$
41,928,572
Net
Assets
Consist
of:
Paid-in-Capital
$
39,615,447
Total
Distributable
Earnings
2,313,125
Net
Assets
$
41,928,572
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
1,550,000
Net
Asset
Value
Per
Share
$
27
.05
85,664
Semi-Annual
Report
March
31,
2024
(unaudited)
Parametric
Equity
Premium
Income
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Period
from
October
16,
2023
^
to
March
31,
2024
Investment
Income:
Dividends
from
Securities
of
Unaffiliated
Issuers
$
420,254
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
11,137
Total
Investment
Income
431,391
Expenses:
Management
Fee
(Note
B)
32,927
Total
Expenses
32,927
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(
319
)
Net
Expenses
32,608
Net
Investment
Income
398,783
Realized
Gain
(Loss):
Investments
Sold
(
300,059
)
Written
Option
Contracts
(
562,706
)
Net
Realized
Loss
(
862,765
)
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
3,597,381
Written
Option
Contracts
9,442
Net
Change
in
Unrealized
Appreciation
(Depreciation)
3,606,823
Net
Realized
Loss
and
Change
in
Unrealized
Appreciation
(Depreciation)
2,744,058
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
3,142,841
^
Commencement
of
operations.
Semi-Annual
Report
March
31,
2024
Parametric
Equity
Premium
Income
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Changes
in
Net
Assets
Period
from
October
16,
2023
^
to
March
31,
2024
(unaudited)
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
398,783
Net
Realized
Loss
(862,765
)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
3,606,823
Net
Increase
in
Net
Assets
Resulting
from
Operations
3,142,841
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(829,716
)
Total
Dividends
and
Distributions
to
Shareholders
(829,716
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Subscribed
In-Kind
19,615,447
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
39,615,447
Total
Increase
in
Net
Assets
41,928,572
Net
Assets:
Beginning
of
Period
End
of
Period
$
41,928,572
Capital
Share
Transactions:
Beginning
of
Period
Shares
Subscribed
800,000
Shares
Subscribed
In-Kind
750,000
Shares
Outstanding,
End
of
Period
Net
Increase
in
1,550,000
^
Commencement
of
Operations
(1)
Total
consists
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Parametric
Equity
Premium
Income
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Period
from
October
16,
2023
(1)
to
March
31,
2024
(unaudited)
Net
Asset
Value,
Beginning
of
Period
$
25
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
0
.41‌
Net
Realized
and
Unrealized
Gain
2
.45‌
Total
from
Investment
Operations
2
.86‌
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
0
.81‌
)
Net
Asset
Value,
End
of
Period
$
27
.05‌
Total
Return
(3)
11
.65‌
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$41,929
Net
Assets,
End
of
Period
(Thousands)
$
41,929‌
Ratio
of
Expenses
0
.29‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
3
.49‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.00‌
%
(5)
(7)
Portfolio
Turnover
Rate
14‌
%
(4)
(8)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(7)
Amount
is
less
than
0.005%.
(8)
In-kind
transactions
are
not
included
in
portfolio
turnover
calculations.
13
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
“Trust”)
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to
establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Act”).
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Parametric
Equity
Premium
Income
ETF (the
"Fund"),
which
seeks
to
provide
consistent
monthly
income
while
maintaining
pros-
pects
for
capital
appreciation.
The
Fund
is
diversified. 
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
An
equity
portfolio
security
list-
ed
or
traded
on
an
exchange
is
valued
at
its
latest
reported
sales
price
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price),
and
if
there
were
no
sales
on
a
given
day
and
if
there
is
no
official
ex-
change
closing
price
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
relevant
ex-
changes.
If
only
bid
prices
are
available
then
the
latest
bid
price
may
be
used.
Listed
equity
securities
not
traded
on
the
valuation
date
with
no
reported
bid
and
asked
prices
available
on
the
exchange
are
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers.
In
cases
where
a
securi-
ty
is
traded
on
more
than
one
exchange,
the
security
is
valued
on
the
exchange
designated
as
the
primary
market;
(2)
all
other
equity
portfolio
securities
for
which
over-the-
counter
(“OTC”)
market
quotations
are
readily
available
are
valued
at
the
latest
reported
sales
price
(or
at
the
mar-
ket
official
closing
price
if
such
market
reports
an
official
closing
price),
and
if
there
was
no
trading
in
the
security
on
a
given
day
and
if
there
is
no
official
closing
price
from
relevant
markets
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
rel-
evant
markets.
An
unlisted
equity
security
that
does
not
trade
on
the
valuation
date
and
for
which
bid
and
asked
prices
from
the
relevant
markets
are
unavailable
is
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers;
(3)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
or
Paramet-
ric
Portfolio
Associates
LLC
(the
"Sub-Adviser"),
each a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/
vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers/
dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable brokers/dealers;
(4)
listed
options
are
valued
at
the
last
reported
sales
price
on
the
exchange
on
which
they
are
listed
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price).
If
an
official
closing
price
or
last
reported
sales
price
is
unavailable,
the
listed
option
should
be
fair
valued
at
the
mean
between
its
latest
bid
and
ask
prices.
Unlisted
options
are
valued
at
the
mean
between
their
latest
bid
and
ask
prices
from
a
reputable
broker/
dealer
or
valued
by
a
pricing
service/vendor;
(5) when
market
quotations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circumstances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
market
value,
port-
folio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees; and
(6)
invest-
ments
in
mutual
funds,
including
the
Morgan
Stanley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
14
Morgan
Stanley
ETF
Trust
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
 Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
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.
Derivatives
are
financial
instruments
whose
value
is
based,
in
part,
on
the
value
of
an
underlying
asset,
interest
rate,
index
or
financial
instrument.
Prevail-
ing
interest
rates
and
volatility
levels,
among
other
things,
also
affect
the
value
of
derivative
instruments.
A
deriva-
tive
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,
instru-
ments,
indices
or
interest
rates
to
which
the
derivative
instrument
relates,
risks
that
the
transactions
may
not
be
liquid
and
risks
arising
from
margin
requirements,
risks
arising
from
mispricing
or
valuation
complexity
and
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:  
Common
Stocks
$
41,554‌
(1)
$
$
$
41,554
Short-Term
Investment
Investment
Company
565‌
565
Total
Assets
$
42,119‌
$—
$—
$42,119
Liabilities:
Written
Options
—‌
(
86)
(
86)
Total
Liabilities
$
—‌
$(86)
$—
$(86)
Total
$
42,119‌
$(86)
$—
$42,033
(1)
The
level
classification
by
major
category
of
investments
is
the
same
as
the
category
presentation
in
the
Portfolio
of
Investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
15
Morgan
Stanley
ETF
Trust
operational
and
legal
risks. 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
port-
folio
investments.
All
of
the
Fund’s
holdings,
including
derivative
instruments,
are
marked-to-market
each
day
with
the
change
in
value
reflected
in
unrealized
appreci-
ation
(depreciation).
Upon
disposition,
a
realized
gain
or
loss
is
recognized.
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
transac-
tions
may
cause
the
Fund
to
liquidate
portfolio
positions
when
it
may
not
be
advantageous
to
do
so
to
satisfy
its
obligations
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
objectives,
there
is
no
assurance
that
the
use
of
derivatives
will
achieve
this
result.
Following
is
a
description
of
the
derivative
instruments
and
techniques
that
the
Fund
used
during
the
period
and
their
associated
risks:
Options:
With
respect
to
options,
the
Fund
is
subject
to
equity
risk,
interest
rate
risk
and
foreign
currency
exchange
risk
in
the
normal
course
of
pursuing
its
in-
vestment
objectives.
If
the
Fund
buys
an
option,
it
buys
a
legal
contract
giving
it
the
right
to
buy
or
sell
a
specific
amount
of
the
underlying
instrument
or
foreign
curren-
cy,
or
futures
contract
on
the
underlying
instrument
or
foreign
currency,
at
an
agreed-upon
price
during
a
period
of
time
or
on
a
specified
date
typically
in
exchange
for
a
premium
paid
by
the
Fund.
The
Fund
may
write
call
and
put
options
on
stock
indexes,
futures,
securities
or
currencies
it
owns
or
in
which
it
may
invest.
Writing
put
options
tend
to
increase
the
Fund's
exposure
to
the
underlying
instrument.
Writing
call
options
tend
to
decrease
the
Fund's
exposure
to
the
underlying
instru-
ments.
When
the
Fund
writes
a
call
or
put
option,
an
amount
equal
to
the
premium
received
is
recorded
as
a
liability.
Any
liability
recorded
is
subsequently
adjusted
to
reflect
the
current
value
of
the
options
written.
Premiums
received
from
writing
options
which
expire
are
treated
as
realized
gains.
Premiums
received
from
writing
options
which
are
exercised
or
are
closed
are
added
to
or
offset
against
the
proceeds
or
amount
paid
on
the
transaction
to
determine
the
net
realized
gain
or
loss.
The
Fund
as
a
writer
of
an
option
has
no
control
over
whether
the
underlying
future,
security
or
currency
may
be
sold
(call)
or
purchased
(put)
and
as
a
result
bears
the
market
risk
of
an
unfavorable
change
in
the
price
of
the
future,
security
or
currency
underlying
the
written
option. Options
may
also
be
illiquid
and
the
Fund
may
have
difficulty
closing
out
its
position.
A
decision
as
to
whether,
when
and
how
to
use
options
involves
the
exercise
of
skill
and
judgment
and
even
a
well-conceived
option
transaction
may
be
unsuccessful
because
of
market
behavior
or
unexpected
events.
The
prices
of
options
can
be
highly
volatile
and
the
use
of
options
can
lower
total
returns.
FASB
ASC
815,
“Derivatives
and
Hedging”
(“ASC
815”),
is
intended
to
improve
financial
reporting
about
deriv-
ative
instruments
by
requiring
enhanced
disclosures
to
enable
investors
to
better
understand
how
and
why
the
Fund
uses
derivative
instruments,
how
these
derivative
instruments
are
accounted
for
and
their
effects
on
the
Fund’s
financial
position
and
results
of
operations.
The
following
tables
set
forth
the
fair
value
of
the
Fund’s
derivative
contracts
by
primary
risk
exposure
as
of
March
31,
2024:
The
following
tables
set
forth
by
primary
risk
exposure
the
Fund’s
realized
gains
(losses)
and
change
in
unrealized
appreciation
(depreciation)
by
type
of
derivative
contract
for
the
period
ended
March
31,
2024
in
accordance
with
ASC
815:
Liability
Derivatives
Statement
of
Assets
and
Primary
Risk
Liabilities
Location
Exposure
Value
Written
Option
Contracts
Written
Option
Contracts,
at
Value
Equity
Risk
$(85,664‌)
Realized
Gain
(Loss)
Primary
Risk
Exposure
Derivative
Type
Value
Equity
Risk
Written
Option
Contracts
$(562,706‌)
Change
in
Unrealized
Appreciation
(Depreciation)
Primary
Risk
Exposure
Derivative
Type
Value
Equity
Risk
Written
Option
Contracts
$9,442‌
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
16
Morgan
Stanley
ETF
Trust
At
March
31,
2024,
the
Fund's
derivative
assets
and
liabilities
are
as
follows:
4.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
5.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
monthly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
6.
Security
Transactions
and Income:
Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
at
fair
value.
B.
Management/Sub-Advisory Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
investments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.29% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays substantially
all
the
expenses
of
the
Fund
(in-
cluding
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.
.
The
Adviser
has
entered
into
a
Sub-Advisory
Agreement
with
the
Sub-Adviser,
a
wholly-owned
subsidiary
of
Morgan
Stanley.
The
Sub-Adviser
provides
the
Fund
with
investment
advisory
services
subject
to
the
overall
supervision
of
the
Adviser
and
the
Trust's
Officers
and
Trustees.
The
Adviser
pays
the
Sub-Adviser
on
a
monthly
basis
a
portion
of
the
net
advisory
fees
the
Advis-
er
receives
from
the
Fund.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 50,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
Written
Option
Contracts:
Average
monthly
notional
amount
.................
$51,932
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statement
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the
period ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-
term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $22,187,484
and
$3,292,590,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
for
the
period
ended
March
31,
2024. Purchase
and
Sales
related
to
In-Kind
transactions
were
$19,361,777 and
$0
 for
period ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
invest-
ment
in
the
Liquidity
Fund.
For
the
period ended
March
31,
2024, management
fees
paid
were
reduced
by $319 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
period ended
March
31,
2024 is
as
follows: 
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
Affiliated
Investment
Company
Value
October
16,
2023
*
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
$
7,840
$
7,275
$
11
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
565
*
Commencement
of
Operations.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
18
Morgan
Stanley
ETF
Trust
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
To
the
extent
that
these
inter-
mediaries
exit
the
business
or
are
unable
to
or
choose
not
to
proceed
with
creation
and/or
redemption
orders
with
respect
to
the
Fund,
such
as
during
periods
of
market
stress,
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.
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
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
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
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
circumstanc-
es,
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. 
20
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
Morgan
Stanley
ETF
Trust
The
Board
considered
the
following
factors
at
the
time
of
approval
of
the
contracts
which
occurred
prior
to
commencement
of
operations.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
the
nature
and
extent
of
the
investment
advisory
and
portfolio
management
services
to
be
provided
by
the
Adviser
and
Sub-Adviser
under
the
investment
management
agreement
and
the
sub-advisory
agreement
(collectively,
the
“Management
Agreement”),
respectively,
including
portfolio
management,
investment
research
and
equity
and
fixed
income
securities
trading.
The
Board
reviewed
similar
information
and
factors
regarding
the
Sub-Adviser,
to
the
extent
applicable.
The
Board
also
reviewed
and
considered
the
nature
and
extent
of
the
non-advisory
services
to
be
provided
by
the
Adviser
under
the
Management
Agreement,
including
operations,
compliance,
business
management
and
planning,
legal
services
and
the
provision
of
supplies,
office
space
and
utilities
at
the
Adviser’s
expense.
The
Board
also
considered
the
Adviser’s
investment
in
personnel
and
infrastructure
that
benefits
the
Fund.
(The
Adviser
and
Sub-Adviser
are
referred
to
as
the
“Adviser.”)
The
Board
also
considered
that
the
Adviser
serves
a
variety
of
other
investment
advisory
clients
and
has
experience
overseeing
service
providers.
The
Board
reviewed
and
considered
the
qualifications
of
the
portfolio
managers
and
other
key
personnel
of
the
Adviser
who
will
provide
the
advisory
services
to
the
Fund.
The
Board
determined
that
the
Adviser's
portfolio
managers
and
key
personnel
are
well
qualified
by
education
and/or
training
and
experience
to
perform
the
services
in
an
efficient
and
professional
manner.
The
Board
concluded
that
the
nature
and
extent
of
the
advisory
services
to
be
provided
were
necessary
and
appropriate
for
the
conduct
of
the
business
and
investment
activities
of
the
Fund
and
supported
its
decision
to
approve
the
Management
Agreement.
Performance,
Fees
and
Expenses
of
the
Fund
The
Board
considered
that
the
Adviser
plans
to
arrange
for
a
public
offering
of
shares
of
the
Fund
to
raise
assets
for
investment
and
that
the
offering
had
not
yet
begun
and
concluded
that,
since
the
Fund
currently
had
no
assets
to
invest
(other
than
seed
capital
required
under
the
Investment
Company
Act)
and
had
no
track
record
of
performance,
this
was
not
a
factor
it
needed
to
address
at
the
present
time.
The
Board
reviewed
the
unitary
management
fee
(the
“management
fee
rate”)
proposed
to
be
paid
by
the
Fund
under
the
Management
Agreement,
pursuant
to
which
the
Adviser
would
pay
substantially
all
of
the
operating
expenses
of
the
Fund,
subject
to
certain
exceptions.
The
Board
considered
the
benefits
of
a
unitary
fee
structure
and
considered
the
management
fee
rate
relative
to
comparable
funds
advised
by
the
Adviser
or
its
affiliates,
when
applicable,
and
compared
to
peers
as
determined
by
the
Adviser.
The
Board
reviewed
the
anticipated
total
expense
ratio
of
the
Fund,
which,
due
to
the
unitary
management
fee
structure,
was
equal
to
the
proposed
management
fee
rate.
The
Board
also
considered
that
the
fees
charged
by
the
Fund’s
other
service
providers
would
be
paid
by
the
Adviser
under
the
unitary
management
fee
structure.
The
Board
considered
that
the
Fund
requires
the
Adviser
to
develop
processes,
invest
in
additional
resources
and
incur
additional
risks
to
successfully
manage
the
Fund
and
concluded
that
the
proposed
management
fee
rate
and
anticipated
total
expense
ratio
would
be
competitive
with
its
peer
group
averages.
Economies
of
Scale
The
Board
considered
the
growth
prospects
of
the
Fund
and
the
proposed
unitary
management
fee
schedule,
which
does
not
include
breakpoints.
The
Board
considered
that
the
unitary
management
fee
rate
was
set
at
a
level
to
anticipate
economies
of
scale
at
lower
asset
levels
before
economies
of
scale
are
achieved
(if
ever).
The
Board
also
considered
that
the
unitary
management
fee
structure
inherently
reflects
certain
economies
of
scale
because
the
management
fee
rate
is
fixed
at
a
competitive
level
over
the
contract
period
and
therefore
the
management
fee
rate
paid
by
the
Fund
will
not
increase
in
the
future
even
if
the
Fund’s
operating
costs
rise
and
assets
remain
flat
or
decrease.
The
Board
also
considered
that
increases
in
the
Fund’s
assets
would
not
lead
to
a
reduction
to
the
unitary
management
fee
rate
paid
by
the
Fund
in
the
future
even
if
economies
of
scale
were
achieved.
The
Board
considered
that
the
Fund’s
potential
growth
was
uncertain
and
concluded
that
it
would
be
premature
to
consider
economies
of
scale
as
a
factor
in
approving
the
Management
Agreement
at
the
present
time.
Profitability
of
the
Adviser
and
Affiliates
Since
the
Fund
had
not
begun
operations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
this
was
not
a
factor
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
(cont’d)
21
Morgan
Stanley
ETF
Trust
that
needed
to
be
considered
at
the
present
time.
Other
Benefits
of
the
Relationship
The
Board
considered
other
direct
and
indirect
benefits
to
the
Adviser
and/or
its
affiliates
to
be
derived
from
their
relationship
with
the
Fund
and
other
funds
advised
by
the
Adviser.
These
benefits
may
include,
among
other
things,
fees
for
trading,
distribution
and/or
shareholder
servicing
and
for
transaction
processing
and
reporting
platforms
used
by
securities
lending
agents,
and
research
received
by
the
Adviser
generated
from
commission
dollars
spent
on
funds’
portfolio
trading.
Since
the
Fund
had
not
begun
operations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
these
benefits
were
not
a
factor
that
needed
to
be
considered
at
the
present
time.
Resources
of
the
Adviser
and
Historical
Relationship
Between
the
Fund
and
the
Adviser
The
Board
considered
whether
the
Adviser
is
financially
sound
and
has
the
resources
necessary
to
perform
its
obligations
under
the
Management
Agreement.
The
Board
also
reviewed
and
considered
the
organizational
structure
of
the
Adviser,
the
policies
and
procedures
formulated
and
adopted
by
the
Adviser
for
managing
the
Fund’s
operations
and
the
Board’s
confidence
in
the
competence
and
integrity
of
the
senior
managers
and
key
personnel
of
the
Adviser.
The
Board
concluded
that
the
Adviser
has
the
financial
resources
necessary
to
fulfill
its
obligations
under
the
Management
Agreement
and
that
it
is
beneficial
for
the
Fund
to
enter
into
this
relationship
with
the
Adviser.
Other
Factors
and
Current
Trends
The
Board
considered
the
controls
and
procedures
adopted
and
implemented
by
the
Adviser
and
monitored
by
the
Fund’s
Chief
Compliance
Officer
and
concluded
that
the
conduct
of
business
by
the
Adviser
indicates
a
good
faith
effort
on
its
part
to
adhere
to
high
ethical
standards
in
the
conduct
of
the
Fund’s
business.
General
Conclusion
After
considering
and
weighing
all
of
the
above
factors,
with
various
written
materials
and
verbal
information
presented
by
the
Adviser,
the
Board
concluded
that
it
would
be
in
the
best
interest
of
the
Fund
and
its
future
shareholders
to
approve
the
Management
Agreement,
which
will
remain
in
effect
for
two
years
and
thereafter
must
be
approved
annually
by
the
Board
of
the
Fund
if
it
is
to
continue
in
effect.
In
reaching
this
conclusion
the
Board
did
not
give
particular
weight
to
any
single
piece
of
information
or
factor
referenced
above.
It
is
possible
that
individual
Board
members
may
have
weighed
these
factors,
and
the
information
presented,
differently
in
reaching
their
individual
decisions
to
approve
the
Management
Agreement.
22
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program*
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
*
The
Fund
commenced
operations
subsequent
to
the
period
covered
by
the
report,
which
applied
to
other funds
of
the
Trust
during
that
period.
However,
during
the
period
ended
March
31,
2024,
the
Program
applied
to
the
Fund.
23
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
A
copy
of
the
Proxy
Policy,
as
well
as
the
Trust’s
most
recent
proxy
voting
record
for
the
12-month
period
ended
June
30,
as
filed
with
the
SEC,
are
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
is
also
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
24
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
25
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
26
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
27
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Sub-Adviser
Parametric
Portfolio
Associates
LLC
800
Fifth
Avenue
Suite
2800
Seattle,
Washington
98104
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
PARAMETEQTYPREMINCETFSAN
6598665
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Morgan
Stanley
ETF
Trust
Parametric
Hedged
Equity
ETF
NYSE
Arca:
PHEQ
Semi-Annual
Report
March
31,
2024
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Table
of
Contents
1
This
report
is
authorized
for
distribution
only
when
preceded
or
accompanied
by
a
prospectus
or
summary
prospectus
of
the
applicable
Fund
of
Morgan
Stanley
ETF
Trust.
To
receive
a
prospectus
and/or
statement
of
additional
information
(“SAI”),
which
contains
more
complete
information
such
as
investment
objectives,
charges,
expenses,
policies
for
voting
proxies,
risk
considerations
and
describes
in
detail
each
of
the
Fund’s
investment
policies
to
the
prospective
investor,
please
call
toll
free
1
(800)
836-2414.
Please
read
the
prospectuses
carefully
before
you
invest.
Additionally,
you
can
access
Fund
information
including
performance,
characteristics
and
investment
team
commentary,
through
Morgan
Stanley
Investment
Management’s
website:
www.morganstanley.com/im.
There
is
no
assurance
that
a
fund
will
achieve
its
investment
objective.
Funds
are
subject
to
market
risk,
which
is
the
possibility
that
market
values
of
securities
owned
by
the
Fund
will
decline
and,
therefore,
the
value
of
the
Fund’s
shares
may
be
less
than
what
you
paid
for
them.
Accordingly,
you
can
lose
money
investing
in
this
Fund.
Please
see
the
prospectus
for
more
complete
information
on
investment
risks.
Shareholders’
Letter
........................................................................................
2
Expense
Example
...........................................................................................
3
Performance
Summary
.....................................................................................
4
Portfolio
of
Investments
.....................................................................................
5
Statement
of
Assets
and
Liabilities
..........................................................................
10
Statement
of
Operations
....................................................................................
11
Statement
of
Changes
in
Net
Assets
........................................................................
12
Financial
Highlights
.........................................................................................
13
Notes
to
Financial
Statements
...............................................................................
14
Investment
Advisory
Agreement
Approval
....................................................................
21
Liquidity
Risk
Management
Program
.........................................................................
23
Important
Notices
..........................................................................................
24
U.S.
Customer
Privacy
Notice
...............................................................................
25
Trustees
and
Officers
Information
...........................................................................
28
2
Semi-Annual
Report
March
31,
2024
(unaudited)
Shareholders’
Letter
Morgan
Stanley
ETF
Trust
Dear
Shareholders,
We
are
pleased
to
provide
this
Semi-Annual Report,
in
which
you
will
learn
how
your
investment
in Parametric
Hedged
Equity
ETF (the
“Fund”)
performed
during
the
period
beginning October
16,
2023
(when
the
Fund
commenced
operations)
and
ended
March
31,
2024.
Morgan
Stanley
Investment
Management,
the
Fund's
investment
adviser, is
a
client-centric,
investor-led
organization.
Our
global
presence,
intellectual
capital,
and
breadth
of
products
and
services
enable
us
to
partner
with
investors
to
meet
the
evolving
chal-
lenges
of
today’s
financial
markets.
We
aim
to
deliver
superior
investment
service
and
to
empower
our
clients
to
make
the
informed
decisions
that
help
them
reach
their
investment
goals.
As
always,
we
thank
you
for
selecting
Morgan
Stanley
Investment
Management,
and
look
forward
to
working
with
you
in
the
months
and
years
ahead.
Sincerely,
John
H.
Gernon
President
and
Principal
Executive
Officer
April
2024
3
Semi-Annual
Report
March
31,
2024
(unaudited)
Expense
Example
Parametric
Hedged
Equity
ETF
Morgan
Stanley
ETF
Trust
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transactional
costs;
and
(2)
ongoing
costs,
which
may
include
man-
agement
fees,
and
distribution
and
shareholder
services
fees.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
funds.
This
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
10/16/23-
3/31/24.
Actual
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
table,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical Example
for
Comparison
Purposes
The
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds. 
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
sales
charges
(loads).
Therefore,
the
information
for
each
class
in
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
(10/16/23)
Actual
Ending
Account
Value
(3/31/24)
Hypothetical
Ending
Account
Value
Actual
Expenses
Paid
During
Period
*
Hypothetical
Expenses
Paid
During
Period
*
Net
Expense
Ratio
During
Period
**
Parametric
Hedged
Equity
ETF
^
$1,000.00
$1,101.90
$1,021.62
$1.40
$1.35
0.29%
*
Expenses
are
calculated
using
the
Fund’s
annualized
net
expense
ratio
(as
disclosed),
multiplied
by
the
average
account
value
over
the
period
and
multiplied
by
168/366
(to
reflect
the
actual
days
in
the
period).
**
Annualized.
^
The
Fund
commenced
operations
on
October
16,
2023.
4
Semi-Annual
Report
March
31,
2024
(unaudited)
Performance
Summary
Parametric
Hedged
Equity
ETF
Morgan
Stanley
ETF
Trust
Performance
data
quoted
represents
past
performance,
which
is
no
guarantee
of
future
results,
and
current
performance
may
be
lower
or
higher
than
the
figures
shown.
Performance
assumes
that
all
dividends
and
distributions,
if
any,
were
reinvested.
For
the
most
recent
month-end
performance
figures,
please
visit
www.
morganstanley.com/im.
Investment
return
and
principal
value
will
fluctuate
so
that
Fund
shares,
when
sold
or redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Total
returns
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
selling
or
redemption
of
Fund
shares.
Returns
for
periods
less
than
year
are
not
annualized.
Fund's
total
returns
are
calculated
as
of
the
last
business
day
of
the
period.
Performance
Compared
to
the
S&P
500
®
Index
(1)
Cumulative
Total
Return
for
the
Period
Ended
March
31,
2024
Since
Inception
(2)
Parametric
Hedged
Equity
ETF
-
NAV
(3)
10.19%
Parametric
Hedged
Equity
ETF
-
Market
Price
(3)
10.27%
S&P
500
®
Index
20.99%
(1)
The
Standard
&
Poor’s
500
®
Index
(S&P
500
®
Index)
measures
the
performance
of
the
large
cap
segment
of
the
U.S.
equities
market,
covering
approximately
80%
of
the
U.S.
equities
market.
The
Index
includes
500
leading
companies
in
leading
industries
of
the
U.S.
economy.
Unless
otherwise
stated,
index
returns
do
not
reflect
the
effect
of
any
applicable
sales
charges,
commissions,
expenses,
taxes
or
leverage,
as
applicable.
It
is
not
possible
to
invest
directly
in
an
index.
Historical
performance
of
the
index
illustrates
market
trends
and
does
not
represent
the
past
or
future
performance
of
the
Fund.
(2)
For
comparative
purposes,
cumulative
total
since
inception
returns
listed
for
the
Index
refer
to
the
inception
date
of
the
Fund,
not
the
inception
of
the
Index.
(3)
Commenced
operations
on
October
16,
2023.
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
Parametric
Hedged
Equity
ETF
5
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Common
Stocks
(105.4%)
Aerospace
&
Defense
(1.7%)
Boeing
Co.
(The)
(a)
556
$
107,302
HEICO
Corp.
326
62,266
HEICO
Corp.,
Class
 A
273
42,026
Howmet
Aerospace,
Inc.
1,474
100,866
Lockheed
Martin
Corp.
378
171,941
Northrop
Grumman
Corp.
206
98,604
583,005
Air
Freight
&
Logistics
(0.3%)
Expeditors
International
of
Washington,
Inc.
699
84,977
Automobile
Components
(0.0%)(b)
Mobileye
Global,
Inc.,
Class
 A
(a)
373
11,992
Automobiles
(1.3%)
Rivian
Automotive,
Inc.,
Class
 A
(a)
1,099
12,034
Tesla,
Inc.
(a)
2,345
412,228
424,262
Banks
(3.7%)
Bank
of
America
Corp.
7,908
299,872
Citizens
Financial
Group,
Inc.
2,001
72,616
First
Citizens
BancShares
,
Inc.,
Class
 A
20
32,700
Huntington
Bancshares,
Inc.
7,053
98,389
JPMorgan
Chase
&
Co.
2,750
550,825
Wells
Fargo
&
Co.
3,271
189,587
1,243,989
Beverages
(1.9%)
Brown-Forman
Corp.,
Class
 A
273
14,455
Brown-Forman
Corp.,
Class
 B
1,332
68,758
Coca-Cola
Co.
(The)
4,544
278,002
PepsiCo,
Inc.
1,606
281,066
642,281
Biotechnology
(2.4%)
AbbVie,
Inc.
1,750
318,675
Alnylam
Pharmaceuticals,
Inc.
(a)
169
25,257
Amgen,
Inc.
577
164,053
BioMarin
Pharmaceutical,
Inc.
(a)
256
22,359
Moderna,
Inc.
(a)
249
26,534
Regeneron
Pharmaceuticals,
Inc.
(a)
119
114,536
Vertex
Pharmaceuticals,
Inc.
(a)
301
125,821
797,235
Broadline
Retail
(4.3%)
Amazon.com,
Inc.
(a)
7,600
1,370,888
Coupang,
Inc.
(a)
400
7,116
MercadoLibre
,
Inc.
(a)
50
75,598
1,453,602
Building
Products
(0.6%)
Builders
FirstSource
,
Inc.
(a)
281
58,603
Carlisle
Cos.,
Inc.
171
67,006
Lennox
International,
Inc.
152
74,291
199,900
Capital
Markets
(2.1%)
Ares
Management
Corp.,
Class
 A
557
74,070
Blue
Owl
Capital,
Inc.,
Class
 A
1,219
22,990
Charles
Schwab
Corp.
(The)
1,582
114,442
Coinbase
Global,
Inc.,
Class
 A
(a)
203
53,819
Shares
Value
Franklin
Resources,
Inc.
1,797
$
50,514
Interactive
Brokers
Group,
Inc.,
Class
 A
277
30,944
KKR
&
Co.,
Inc.
1,132
113,857
LPL
Financial
Holdings,
Inc.
129
34,082
Morgan
Stanley
(
See
Note
G
)
1,069
100,657
Nasdaq,
Inc.
1,095
69,094
Tradeweb
Markets,
Inc.,
Class
 A
303
31,563
696,032
Chemicals
(1.8%)
Celanese
Corp.,
Class
 A
367
63,073
International
Flavors
&
Fragrances,
Inc.
667
57,355
Linde
plc
582
270,234
LyondellBasell
Industries
NV,
Class
 A
978
100,030
PPG
Industries,
Inc.
652
94,475
Westlake
Corp.
107
16,349
601,516
Commercial
Services
&
Supplies
(1.3%)
Cintas
Corp.
220
151,147
Republic
Services,
Inc.,
Class
 A
681
130,371
Waste
Management,
Inc.
817
174,143
455,661
Communications
Equipment
(0.6%)
Cisco
Systems,
Inc.
4,021
200,688
Construction
Materials
(0.2%)
CRH
plc
646
55,724
Consumer
Finance
(0.7%)
American
Express
Co.
794
180,786
Synchrony
Financial
1,494
64,421
245,207
Consumer
Staples
Distribution
&
Retail
(1.9%)
Albertsons
Cos.,
Inc.,
Class
 A
1,079
23,134
Costco
Wholesale
Corp.
475
347,999
Walmart,
Inc.
4,597
276,602
647,735
Containers
&
Packaging
(0.2%)
Amcor
plc
7,445
70,802
Diversified
REITs
(0.2%)
WP
Carey,
Inc.
1,246
70,324
Diversified
Telecommunication
Services
(0.5%)
AT&T,
Inc.
9,948
175,085
Electric
Utilities
(1.2%)
Alliant
Energy
Corp.
1,729
87,142
Avangrid,
Inc.
694
25,289
Entergy
Corp.
981
103,672
FirstEnergy
Corp.
2,071
79,982
PPL
Corp.
3,576
98,447
394,532
Electrical
Equipment
(0.5%)
AMETEK,
Inc.
699
127,847
Hubbell,
Inc.,
Class
 B
127
52,711
180,558
Electronic
Equipment,
Instruments
&
Components
(0.4%)
Jabil,
Inc.
108
14,467
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Parametric
Hedged
Equity
ETF
6
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Electronic
Equipment,
Instruments
&
Components
(cont’d)
TE
Connectivity
Ltd.
881
$
127,956
142,423
Energy
Equipment
&
Services
(0.2%)
Halliburton
Co.
28
1,104
Schlumberger
NV
1,476
80,899
82,003
Entertainment
(1.7%)
Netflix,
Inc.
(a)
378
229,571
ROBLOX
Corp.,
Class
 A
(a)
592
22,603
Spotify
Technology
SA
(a)
179
47,238
Walt
Disney
Co.
(The)
2,042
249,859
Warner
Music
Group
Corp.,
Class
 A
275
9,080
558,351
Financial
Services
(4.7%)
Apollo
Global
Management,
Inc.
675
75,904
Berkshire
Hathaway,
Inc.,
Class
 B
(a)
1,245
523,547
Block,
Inc.,
Class
 A
(a)
801
67,749
Mastercard,
Inc.,
Class
 A
831
400,185
PayPal
Holdings,
Inc.
(a)
1,329
89,030
Rocket
Cos.,
Inc.,
Class
 A
(a)
917
13,342
Visa,
Inc.,
Class
 A
1,507
420,573
1,590,330
Food
Products
(0.7%)
Campbell
Soup
Co.
1,552
68,986
Conagra
Brands,
Inc.
2,519
74,663
Kellanova
1,730
99,112
242,761
Ground
Transportation
(1.1%)
Uber
Technologies,
Inc.
(a)
2,017
155,289
Union
Pacific
Corp.
846
208,057
363,346
Health
Care
Equipment
&
Supplies
(2.6%)
Abbott
Laboratories
2,154
244,824
Align
Technology,
Inc.
(a)
155
50,828
Dexcom,
Inc.
(a)
477
66,160
Insulet
Corp.
(a)
181
31,023
Intuitive
Surgical,
Inc.
(a)
407
162,430
Medtronic
plc
1,917
167,066
ResMed,
Inc.
376
74,459
Zimmer
Biomet
Holdings,
Inc.
657
86,711
883,501
Health
Care
Providers
&
Services
(2.4%)
Cencora
,
Inc.
479
116,392
CVS
Health
Corp.
1,543
123,070
Humana,
Inc.
72
24,964
Laboratory
Corp.
of
America
Holdings
271
59,202
Molina
Healthcare,
Inc.
(a)
129
52,997
UnitedHealth
Group,
Inc.
904
447,209
823,834
Health
Care
REITs
(0.3%)
Healthpeak
Properties,
Inc.
5,007
93,881
Health
Care
Technology
(0.0%)(b)
Veeva
Systems,
Inc.,
Class
 A
(a)
33
7,646
Shares
Value
Hotels,
Restaurants
&
Leisure
(2.2%)
Airbnb,
Inc.,
Class
 A
(a)
500
$
82,480
Booking
Holdings,
Inc.
32
116,092
Darden
Restaurants,
Inc.
529
88,422
DoorDash
,
Inc.,
Class
 A
(a)
331
45,585
DraftKings,
Inc.,
Class
 A
(a)
831
37,736
McDonald's
Corp.
667
188,061
MGM
Resorts
International
(a)
1,158
54,669
Yum!
Brands,
Inc.
832
115,357
728,402
Household
Durables
(0.5%)
Lennar
Corp.,
Class
 B
394
60,747
PulteGroup,
Inc.
906
109,282
170,029
Household
Products
(1.5%)
Kimberly-Clark
Corp.
904
116,932
Procter
&
Gamble
Co.
(The)
2,431
394,430
511,362
Industrial
Conglomerates
(0.4%)
3M
Co.
1,306
138,527
Insurance
(2.5%)
Brown
&
Brown,
Inc.
1,026
89,816
Hartford
Financial
Services
Group,
Inc.
(The)
1,324
136,438
Loews
Corp.
1,344
105,222
Markel
Group,
Inc.
(a)
53
80,638
Principal
Financial
Group,
Inc.
826
71,292
Prudential
Financial,
Inc.
1,053
123,622
Travelers
Cos.,
Inc.
(The)
599
137,854
W.
R.
Berkley
Corp.
1,174
103,829
848,711
Interactive
Media
&
Services
(6.9%)
Alphabet,
Inc.,
Class
 A
(a)
5,023
758,122
Alphabet,
Inc.,
Class
 C
(a)
4,338
660,504
Meta
Platforms,
Inc.,
Class
 A
1,824
885,698
Pinterest,
Inc.,
Class
 A
(a)
602
20,871
Snap,
Inc.,
Class
 A
(a)
1,602
18,391
2,343,586
IT
Services
(1.1%)
Accenture
plc,
Class
 A
27
9,358
Amdocs
Ltd.
458
41,390
Cloudflare,
Inc.,
Class
 A
(a)
424
41,056
International
Business
Machines
Corp.
1,058
202,036
MongoDB,
Inc.,
Class
 A
(a)
77
27,615
Snowflake,
Inc.,
Class
 A
(a)
302
48,803
370,258
Life
Sciences
Tools
&
Services
(0.9%)
Bio-Rad
Laboratories,
Inc.,
Class
 A
(a)
73
25,249
Illumina,
Inc.
(a)
251
34,467
Thermo
Fisher
Scientific,
Inc.
447
259,801
319,517
Machinery
(2.1%)
Caterpillar,
Inc.
593
217,293
Deere
&
Co.
376
154,438
Dover
Corp.
667
118,186
Nordson
Corp.
329
90,323
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Parametric
Hedged
Equity
ETF
7
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Machinery
(cont’d)
Otis
Worldwide
Corp.
1,292
$
128,257
708,497
Media
(0.6%)
Comcast
Corp.,
Class
 A
3,997
173,270
Trade
Desk,
Inc.
(The),
Class
 A
(a)
369
32,258
205,528
Metals
&
Mining
(0.4%)
Newmont
Corp.
1,293
46,341
Southern
Copper
Corp.
319
33,980
Steel
Dynamics,
Inc.
406
60,181
140,502
Multi-Utilities
(1.1%)
Ameren
Corp.
1,192
88,160
CenterPoint
Energy,
Inc.
3,273
93,248
CMS
Energy
Corp.
1,646
99,320
DTE
Energy
Co.
945
105,972
386,700
Office
REITs
(0.3%)
Alexandria
Real
Estate
Equities,
Inc.
772
99,518
NET
Lease
Office
Properties
77
1,833
101,351
Oil,
Gas
&
Consumable
Fuels
(3.8%)
Cheniere
Energy,
Inc.
308
49,674
Chevron
Corp.
1,701
268,316
Devon
Energy
Corp.
1,772
88,919
Diamondback
Energy,
Inc.
598
118,506
EQT
Corp.
630
23,354
Exxon
Mobil
Corp.
4,027
468,098
Marathon
Oil
Corp.
3,208
90,915
Occidental
Petroleum
Corp.
1,172
76,168
Targa
Resources
Corp.
844
94,520
1,278,470
Passenger
Airlines
(0.3%)
Delta
Air
Lines,
Inc.
2,397
114,744
Pharmaceuticals
(4.4%)
Eli
Lilly
&
Co.
748
581,914
Johnson
&
Johnson
2,482
392,628
Merck
&
Co.,
Inc.
2,623
346,105
Pfizer,
Inc.
5,246
145,576
Royalty
Pharma
plc,
Class
 A
1,018
30,917
1,497,140
Professional
Services
(0.4%)
Booz
Allen
Hamilton
Holding
Corp.,
Class
 A
220
32,657
Paycom
Software,
Inc.
149
29,652
SS&C
Technologies
Holdings,
Inc.
1,024
65,915
128,224
Residential
REITs
(1.2%)
AvalonBay
Communities,
Inc.
547
101,501
Equity
Residential
1,574
99,335
Essex
Property
Trust,
Inc.
233
57,041
Mid-America
Apartment
Communities,
Inc.
620
81,580
Sun
Communities,
Inc.
417
53,618
393,075
Shares
Value
Semiconductors
&
Semiconductor
Equipment
(11.0%)
Advanced
Micro
Devices,
Inc.
(a)
1,350
$
243,661
Broadcom,
Inc.
379
502,330
GLOBALFOUNDRIES,
Inc.
(a)
6
313
Intel
Corp.
3,874
171,115
KLA
Corp.
203
141,810
Lam
Research
Corp.
204
198,200
Marvell
Technology,
Inc.
1,004
71,164
Micron
Technology,
Inc.
1,228
144,769
NVIDIA
Corp.
1,990
1,798,084
ON
Semiconductor
Corp.
(a)
652
47,955
QUALCOMM,
Inc.
1,178
199,435
Texas
Instruments,
Inc.
1,080
188,147
3,706,983
Software
(11.9%)
Adobe,
Inc.
(a)
315
158,949
Aspen
Technology,
Inc.
(a)
48
10,238
Atlassian
Corp.,
Class
 A
(a)
175
34,144
Bentley
Systems,
Inc.,
Class
 B
321
16,763
Crowdstrike
Holdings,
Inc.,
Class
 A
(a)
270
86,559
Datadog,
Inc.,
Class
 A
(a)
300
37,080
HubSpot,
Inc.
(a)
48
30,075
Intuit,
Inc.
269
174,850
Microsoft
Corp.
6,193
2,605,519
Oracle
Corp.
1,175
147,592
Palantir
Technologies,
Inc.,
Class
 A
(a)
1,382
31,800
Palo
Alto
Networks,
Inc.
(a)
306
86,944
Salesforce,
Inc.
946
284,916
ServiceNow,
Inc.
(a)
227
173,065
Workday,
Inc.,
Class
 A
(a)
292
79,643
Zoom
Video
Communications,
Inc.,
Class
 A
(a)
474
30,985
Zscaler
,
Inc.
(a)
145
27,931
4,017,053
Specialized
REITs
(0.3%)
Extra
Space
Storage,
Inc.
624
91,728
Specialty
Retail
(2.2%)
Chewy,
Inc.,
Class
 A
(a)
17
270
Home
Depot,
Inc.
(The)
1,060
406,616
Lowe's
Cos.,
Inc.
872
222,125
Ross
Stores,
Inc.
796
116,821
745,832
Technology
Hardware,
Storage
&
Peripherals
(6.5%)
Apple,
Inc.
12,427
2,130,982
Dell
Technologies,
Inc.,
Class
 C
443
50,551
2,181,533
Textiles,
Apparel
&
Luxury
Goods
(0.4%)
Lululemon
Athletica,
Inc.
(a)
6
2,344
NIKE,
Inc.,
Class
 B
1,299
122,080
124,424
Trading
Companies
&
Distributors
(0.6%)
Ferguson
plc
426
93,051
United
Rentals,
Inc.
170
122,589
215,640
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Parametric
Hedged
Equity
ETF
8
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Shares
Value
Wireless
Telecommunication
Services
(0.4%)
T-Mobile
US,
Inc.
825
$
134,657
Total
Common
Stocks
(Cost
$30,948,255)
35,625,656
Short-Term
Investment
(1.3%)
Investment
Company
(1.3%
)
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
5.22%
(
See
Note
G
)
(Cost
$435,429)
435,429
435,429
Total
Investments
Excluding
Purchased
Options
(106.7%)
(Cost
$31,383,684)
36,061,085
Total
Purchased
Options
Outstanding
(0.9%)
(Cost
$641,082)
292,470
Total
Investments
(
107.6%
)
(Cost
$32,024,766
)
(c)
36,353,555
Total
Written
Options
(-7.1%)
(Premiums
Received
$(1,176,988)
)
(2,397,346)
Other
Assets
in
Excess
of
Liabilities
((0.5)%)
(170,247)
NET
ASSETS
(100.0%)
$33,785,962
(a)
Non-income
producing
security.
(b)
Amount
is
less
than
0.05%.
(c)
At
March
31,
2024,
the
aggregate
cost
for
federal
income
tax
purposes
is
$32,024,766.
The
aggregate
gross
unrealized
appreciation
is
$4,974,801
and
the
aggregate
gross
unrealized
depreciation
is
$646,012,
resulting
in
net
unrealized
appreciation
of
$4,328,789.
REIT
Real
Estate
Investment
Trust
Put
Options
Purchased:
The
Fund
had
the
following
put
options
purchased
open
at
March
31,
2024:
Description
Number
of
Contracts
Exercise
Price
Expiration
Date
Notional
Amount
Value
Premiums
Paid
Unrealized
Depreciation
S&P
500
Index
18
USD
3,975
6/28/24
$
9,457,830
$
9,774
$
128,873
$
(119,099)
S&P
500
Index
18
USD
3,950
9/30/24
9,457,830
30,870
166,803
(135,933)
S&P
500
Index
18
USD
4,300
12/31/24
9,457,830
88,740
182,319
(93,579)
S&P
500
Index
14
USD
4,725
3/31/25
7,356,090
163,086
163,087
(1)
Total
$292,470
$641,082
$(348,612)
Call
Options
Written:
The
Fund
had
the
following
call
options
written
open
at
March
31,
2024:
Description
Number
of
Contracts
Exercise
Price
Expiration
Date
Notional
Amount
Value
Premiums
Received
Unrealized
Appreciation/
(Depreciation)
S&P
500
Index
18
USD
4,875
6/28/24
$
9,457,830
$
(827,910)
$
(295,158)
$
(532,752)
S&P
500
Index
18
USD
4,975
9/30/24
9,457,830
(841,770)
(329,892)
(511,878)
S&P
500
Index
18
USD
5,400
12/31/24
9,457,830
(505,800)
(232,001)
(273,799)
S&P
500
Index
14
USD
6,050
3/31/25
7,356,090
(126,840)
(126,895)
55
Total
$(2,302,320)
$(983,946)
$(1,318,374)
Semi-Annual
Report
March
31,
2024
(unaudited)
Portfolio
of
Investments
(cont’d)
Parametric
Hedged
Equity
ETF
9
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Put
Options
Written:
The
Fund
had
the
following
put
options
written
open
at
March
31,
2024:
Description
Number
of
Contracts
Exercise
Price
Expiration
Date
Notional
Amount
Value
Premiums
Received
Unrealized
Appreciation/
(Depreciation)
S&P
500
Index
18
USD
3,225
6/28/24
$
9,457,830
$
(3,780)
$
(41,118)
$
37,338
S&P
500
Index
18
USD
3,050
9/30/24
9,457,830
(11,250)
(49,350)
38,100
S&P
500
Index
18
USD
3,350
12/31/24
9,457,830
(30,870)
(53,463)
22,593
S&P
500
Index
14
USD
3,675
3/31/25
7,356,090
(49,126)
(49,111)
(15)
Total
$(95,026)
$(193,042)
$98,016
USD
United
States
Dollar
Portfolio
Composition
Classification  
Percentage
of
Total
Investments
Other*
66.2
%
Software
11.1
Semiconductors
&
Semiconductor
Equipment
10.2
Interactive
Media
&
Services
6.5
Technology
Hardware,
Storage
&
Peripherals
6.0
Total
Investments
100.0
%
*
Industries
and/or
investment
types
representing
less
than
5%
of
total
investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Parametric
Hedged
Equity
ETF
10
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Assets
and
Liabilities
March
31,
2024
Assets:
Investments
in
Securities
of
Unaffiliated
Issuers,
at
Value
(Cost
$31,502,074)
$
35,817,469
Investment
in
Security
of
Affiliated
Issuer,
at
Value
(Cost
$522,692)
536,086
Total
Investments
in
Securities,
at
Value
(Cost
$32,024,766)
36,353,555
Cash
7,986
Receivable
for
Investments
Sold
875,427
Receivable
for
Fund
units
sold
1,351,718
Dividends
Receivable
23,447
Total
Assets
38,612,133
Liabilities:
Written
options
outstanding,
at
value
(premiums
received
$1,176,988)
2,397,346
Payable
for
Investments
Purchased
2,421,619
Payable
for
Management
Fee
7,206
Total
Liabilities
4,826,171
Net
Assets
$
33,785,962
Net
Assets
Consist
of:
Paid-in-Capital
$
31,956,442
Total
Distributable
Earnings
1,829,520
Net
Assets
$
33,785,962
Shares
Outstanding
$0.001
Par
Value
(unlimited
shares
authorized)
1,250,000
Net
Asset
Value
Per
Share
$
27
.03
2,397,346
Semi-Annual
Report
March
31,
2024
(unaudited)
Parametric
Hedged
Equity
ETF
11
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Operations
Period
from
October
16,
2023
^
to
March
31,
2024
Investment
Income:
Dividends
from
Securities
of
Unaffiliated
Issuers
$
169,829
Dividends
from
Security
of
Affiliated
Issuer
(Note
G)
10,870
Total
Investment
Income
180,699
Expenses:
Management
Fee
(Note
B)
31,099
Total
Expenses
31,099
Rebate
from
Morgan
Stanley
Affiliate
(Note
G)
(280)
Net
Expenses
30,819
Net
Investment
Income
149,880
Realized
Gain
(Loss):
Investments
Sold
(282,544)
Written
Option
Contracts
(705,337)
Net
Realized
Loss
(987,881)
Change
in
Unrealized
Appreciation
(Depreciation):
Investments
4,315,395
Investments
in
Affiliates
13,394
Written
Option
Contracts
(1,220,358)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
3,108,431
Net
Realized
Loss
and
Change
in
Unrealized
Appreciation
(Depreciation)
2,120,550
Net
Increase
in
Net
Assets
Resulting
from
Operations
$
2,270,430
^
Commencement
of
operations.
Semi-Annual
Report
March
31,
2024
Parametric
Hedged
Equity
ETF
12
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Statement
of
Changes
in
Net
Assets
Period
from
October
16,
2023
^
to
March
31,
2024
(unaudited)
Increase
(Decrease)
in
Net
Assets:
Operations:
Net
Investment
Income
$
149,880
Net
Realized
Loss
(987,881
)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
3,108,431
Net
Increase
in
Net
Assets
Resulting
from
Operations
2,270,430
Dividends
and
Distributions
to
Shareholders:
Dividends
and
Distributions
(440,910
)
Total
Dividends
and
Distributions
to
Shareholders
(440,910
)
Capital
Share
Transactions:
Subscribed
20,000,000
(1)
Subscribed
In-Kind
11,956,442
Net
Increase
in
Net
Assets
Resulting
from
Capital
Share
Transactions
31,956,442
Total
Increase
in
Net
Assets
33,785,962
Net
Assets:
Beginning
of
Period
End
of
Period
$
33,785,962
Capital
Share
Transactions:
Beginning
of
Period
Shares
Subscribed
800,000
Shares
Subscribed
In-Kind
450,000
Shares
Outstanding,
End
of
Period
Net
Increase
in
1,250,000
^
Commencement
of
Operations
(1)
Total
consists
of
subscriptions
for
seed
capital
by
the
Adviser
and
other
related
parties
of
the
Fund.
Semi-Annual
Report
March
31,
2024
Financial
Highlights
Parametric
Hedged
Equity
ETF
13
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
Morgan
Stanley
ETF
Trust
Selected
Per
Share
Data
and
Ratios
Period
from
October
16,
2023
(1)
to
March
31,
2024
(unaudited)
Net
Asset
Value,
Beginning
of
Period
$
25
.00‌
Income
(Loss)
from
Investment
Operations:
Net
Investment
Income
(2)
0
.17‌
Net
Realized
and
Unrealized
Gain
2
.36‌
Total
from
Investment
Operations
2
.53‌
Distributions
from
and/or
in
Excess
of:
Net
Investment
Income
(
0
.50‌
)
Net
Asset
Value,
End
of
Period
$
27
.03‌
Total
Return
(3)
10
.19‌
%
(4)
Ratios
to
Average
Net
Assets
and
Supplemental
Data:
$33,786
Net
Assets,
End
of
Period
(Thousands)
$
33,786‌
Ratio
of
Expenses
0
.29‌
%
(5)
(6)
Ratio
of
Net
Investment
Income
1
.39‌
%
(5)
(6)
Ratio
of
Rebate
from
Morgan
Stanley
Affiliates
0
.00‌
%
(5)
(7)
Portfolio
Turnover
Rate
4‌
%
(4)
(8)
(1)
Commencement
of
Operations.
(2)
Per
share
amount
is
based
on
average
shares
outstanding.
(3)
Calculated
based
on
the
net
asset
value
as
of
the
last
business
day
of
the
period.
(4)
Not
annualized.
(5)
Annualized.
(6)
The
Ratio
of
Expenses
and
Ratio
of
Net
Investment
Income
reflect
the
rebate
of
certain
Fund
expenses
in
connection
with
the
investments
in
Morgan
Stanley
affiliates
during
the
period.
The
effect
of
the
rebate
on
the
ratios
is
disclosed
in
the
above
table
as
“Ratio
of
Rebate
from
Morgan
Stanley
Affiliates.”
(7)
Amount
is
less
than
0.005%.
(8)
In-kind
transactions
are
not
included
in
portfolio
turnover
calculations.
14
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
Morgan
Stanley
ETF
Trust
Morgan
Stanley
ETF
Trust
(the
“Trust”)
is
an
open-end,
management
investment
company
established
under
Delaware
law
as
a
Delaware
statutory
trust.
Pursuant
to
its
Declaration
of
Trust dated
May
31,
2016,
and
Amended
and
Restated
on
September
28,
2022
(the
"Declaration
of
Trust"),
the
Trust is
authorized
to
establish
multiple
series.
The
Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Act”).
The
Trust
applies
investment
company
accounting
and
report-
ing
guidance
Accounting
Standard
Codification
("ASC")
Topic
946.
In
the
preparation
of
these
financial
statements,
manage-
ment
has
evaluated
subsequent
events
occurring
after
the
date
of
the
Fund's
Statement
of
Assets
and
Liabilities
through
the
date
that
the
financial
statements
were
issued.
The
accompanying
financial
statements
relate
to
the
Parametric
Hedged
Equity
ETF (the
"Fund"),
which
seeks
to
provide
capi-
tal
appreciation
while
limiting
losses
experienced
by
investors
(before
fees,
expenses,
and
taxes)
through
the
incorporation
of
an
option
overlay
hedge
strategy.
The
Fund
is
diversified. 
A.
Significant
Accounting
Policies:
 The
following
signifi-
cant
accounting
policies
are
in
conformity
with
U.S.
generally
accepted
accounting
principles
(“GAAP”).
Such
policies
are
consistently
followed
by
the Trust
in
the
preparation
of
its
financial
statements.
GAAP
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
may
differ
from
those
estimates.
.
1.
Security
Valuation:
(1)
An
equity
portfolio
security
list-
ed
or
traded
on
an
exchange
is
valued
at
its
latest
reported
sales
price
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price),
and
if
there
were
no
sales
on
a
given
day
and
if
there
is
no
official
ex-
change
closing
price
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
relevant
ex-
changes.
If
only
bid
prices
are
available
then
the
latest
bid
price
may
be
used.
Listed
equity
securities
not
traded
on
the
valuation
date
with
no
reported
bid
and
asked
prices
available
on
the
exchange
are
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers.
In
cases
where
a
securi-
ty
is
traded
on
more
than
one
exchange,
the
security
is
valued
on
the
exchange
designated
as
the
primary
market;
(2)
all
other
equity
portfolio
securities
for
which
over-the-
counter
(“OTC”)
market
quotations
are
readily
available
are
valued
at
the
latest
reported
sales
price
(or
at
the
mar-
ket
official
closing
price
if
such
market
reports
an
official
closing
price),
and
if
there
was
no
trading
in
the
security
on
a
given
day
and
if
there
is
no
official
closing
price
from
relevant
markets
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
rel-
evant
markets.
An
unlisted
equity
security
that
does
not
trade
on
the
valuation
date
and
for
which
bid
and
asked
prices
from
the
relevant
markets
are
unavailable
is
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers;
(3)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the
Trust’s
Board
of
Trustees
(the
“Trustees”).
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
If
Morgan
Stanley
Investment
Management
Inc.
(the
“Adviser”)
or
Paramet-
ric
Portfolio
Associates
LLC
(the
"Sub-Adviser"),
each a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/
vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers/
dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable brokers/dealers;
(4)
listed
options
are
valued
at
the
last
reported
sales
price
on
the
exchange
on
which
they
are
listed
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price).
If
an
official
closing
price
or
last
reported
sales
price
is
unavailable,
the
listed
option
should
be
fair
valued
at
the
mean
between
its
latest
bid
and
ask
prices.
Unlisted
options
are
valued
at
the
mean
between
their
latest
bid
and
ask
prices
from
a
reputable
broker/
dealer
or
valued
by
a
pricing
service/vendor;
(5) when
market
quotations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circumstances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
market
value,
port-
folio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees; and
(6)
invest-
ments
in
mutual
funds,
including
the
Morgan
Stanley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trust-
ees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valuation
designee
has
responsibility
for
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
15
Morgan
Stanley
ETF
Trust
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
procedures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.
2.
Fair
Value
Measurement:
Financial
Accounting
Stan-
dards
Board
(“FASB”)
Accounting
Standards
Codifica-
tion
TM
(“ASC”),
“Fair
Value
Measurement”
(“ASC
820”),
defines
fair
value
as
the
price
that
would
be
received
to
sell
an
asset
or
pay to
transfer
a
liability
in
an orderly
transaction
between
market
participants
at
the
measure-
ment
date. ASC
820
establishes
a
three tier
hierarchy
to
distinguish
between
(1)
inputs
that
reflect
the
assump-
tions
market
participants
would
use
in
valuing
an
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity
(observable
inputs)
and
(2)
inputs
that
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
partici-
pants
would
use
in
valuing
an
asset
or
liability
developed
based
on
the
best
information
available
in
the
circum-
stances
(unobservable
inputs)
and
to
establish
classifica-
tion
of
fair
value
measurements
for
disclosure
purposes.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
The
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
unadjusted
quoted
prices
in
active
markets
for
identical
investments.
Level
2
other
significant
observable
inputs
(includ-
ing
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.)
Level
3
significant
unobservable
inputs
including
the
Fund’s
own
assumptions
in
determin-
ing
the
fair
value
of
investments.
Factors
considered
in
making
this
determination
may
include,
but
are
not
limited
to,
infor-
mation
obtained
by
contacting
the
issuer,
analysts,
or
the
appropriate
stock
exchange
(for
exchange-traded
securities),
analysis
of
the
issuer’s
financial
statements
or
other
available
documents
and,
if
necessary,
available
information
concerning
other
securities
in
similar
circumstances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities
and
the
determination
of
the
significance
of
a
particular
input
to
the
fair
value
mea-
surement
in
its
entirety
requires
judgment
and
considers
factors
specific
to
each
security. 
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's
investments
as
of
March
31,
2024:
Transfers
between
investment
levels
may
occur
as
the
markets
fluctuate
and/or
the
availability
of
data
used
in
an
investment’s
valuation
changes. 
3.
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.
Derivatives
are
financial
instruments
whose
value
is
based,
in
part,
on
the
value
of
an
underlying
asset,
interest
rate,
index
or
financial
instrument.
Prevail-
ing
interest
rates
and
volatility
levels,
among
other
things,
also
affect
the
value
of
derivative
instruments.
A
deriva-
tive
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,
instru-
ments,
indices
or
interest
rates
to
which
the
derivative
instrument
relates,
risks
that
the
transactions
may
not
Investment
Type
Level
1
Unadjusted
quoted
prices
(000)
Level
2
Other
significant
observable
inputs
(000)
Level
3
Significant
unobservable
inputs
(000)
Total
(000)
Assets:  
Common
Stocks
$
35,627
(1)
$
$
$
35,627
Purchased
Options
292
292
Short-Term
Investment
Investment
Company
435
435
Total
Assets
$
36,354
$—
$—
$36,354
Liabilities:
Written
Options
(2,397
)
(
2,397)
Total
Liabilities
$
(2,397
)
$—
$—
$(2,397)
Total
$
33,957
$—
$—
$33,957
(1)
The
level
classification
by
major
category
of
investments
is
the
same
as
the
category
presentation
in
the
Portfolio
of
Investments.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
16
Morgan
Stanley
ETF
Trust
be
liquid
and
risks
arising
from
margin
requirements,
risks
arising
from
mispricing
or
valuation
complexity
and
operational
and
legal
risks. 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
port-
folio
investments.
All
of
the
Fund’s
holdings,
including
derivative
instruments,
are
marked-to-market
each
day
with
the
change
in
value
reflected
in
unrealized
appreci-
ation
(depreciation).
Upon
disposition,
a
realized
gain
or
loss
is
recognized.
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
transac-
tions
may
cause
the
Fund
to
liquidate
portfolio
positions
when
it
may
not
be
advantageous
to
do
so
to
satisfy
its
obligations
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
objectives,
there
is
no
assurance
that
the
use
of
derivatives
will
achieve
this
result.
Following
is
a
description
of
the
derivative
instruments
and
techniques
that
the
Fund
used
during
the
period
and
their
associated
risks:
Options:
With
respect
to
options,
the
Fund
is
subject
to
equity
risk,
interest
rate
risk
and
foreign
currency
exchange
risk
in
the
normal
course
of
pursuing
its
in-
vestment
objectives.
If
the
Fund
buys
an
option,
it
buys
a
legal
contract
giving
it
the
right
to
buy
or
sell
a
specific
amount
of
the
underlying
instrument
or
foreign
curren-
cy,
or
futures
contract
on
the
underlying
instrument
or
foreign
currency,
at
an
agreed-upon
price
during
a
period
of
time
or
on
a
specified
date
typically
in
exchange
for
a
premium
paid
by
the
Fund.
The
Fund
may
purchase
and/or
sell
put
and
call
options.
Purchasing
call
options
tends
to
increase
the
Fund's
exposure
to
the
underlying
(or
similar)
instrument.
Purchasing
put
options
tends
to
decrease
the
Fund's
exposure
to
the
underlying
(or
similar)
instrument.
When
entering
into
purchased
option
contracts,
the
Fund
bears
the
risk
of
interest
or
exchange
rates
or
securities
prices
moving
unexpectedly,
in
which
case,
the
Fund
may
not
achieve
the
anticipated
benefits
of
the
purchased
option
contracts;
however
the
risk
of
loss
is
limited
to
the
premium
paid.
Purchased
options
are
reported
as
part
of
"Total
Investments
in
Securities"
in
the
Statement
of
Assets
and
Liabilities.
Premium
paid
for
purchasing
options
which
expired
are
treated
as
realized
losses.
If
the
Fund
sells
an
option,
it
sells
to
another
party
the
right
to
buy
from
or
sell
to
the
Fund
a
specific
amount
of
the
underlying
instrument
or
foreign
currency,
or
futures
contract
on
the
underlying
instrument
or
foreign
currency,
at
an
agreed-upon
price
during
a
period
of
time
or
on
a
specified
date
typically
in
exchange
for
a
premium
received
by
the
Fund.
The
Fund
may
write
call
and
put
options
on
stock
indexes,
futures,
securities
or
currencies
it
owns
or
in
which
it
may
invest.
Writing
put
options
tend
to
increase
the
Fund's
expo-
sure
to
the
underlying
instrument.
Writing
call
options
tend
to
decrease
the
Fund's
exposure
to
the
underlying
instruments.
When
the
Fund
writes
a
call
or
put
option,
an
amount
equal
to
the
premium
received
is
recorded
as
a
liability.
Any
liability
recorded
is
subsequently
adjusted
to
reflect
the
current
value
of
the
options
written.
Premiums
received
from
writing
options
which
expire
are
treated
as
realized
gains.
Premiums
received
from
writing
options
which
are
exercised
or
are
closed
are
added
to
or
offset
against
the
proceeds
or
amount
paid
on
the
transaction
to
determine
the
net
realized
gain
or
loss.
The
Fund
as
a
writer
of
an
option
has
no
control
over
whether
the
underlying
future,
security
or
currency
may
be
sold
(call)
or
purchased
(put)
and
as
a
result
bears
the
market
risk
of
an
unfavorable
change
in
the
price
of
the
future,
secu-
rity
or
currency
underlying
the
written
option.
When
options
are
purchased
OTC,
the
Fund
bears
the
risk
that
the
counterparty
that
wrote
the
option
will
be
unable
or
unwilling
to
perform
its
obligations
under
the
option
contract.
Options
may
also
be
illiquid
and
the
Fund
may
have
difficulty
closing
out
its
position.
A
decision
as
to
whether,
when
and
how
to
use
options
involves
the
exercise
of
skill
and
judgment
and
even
a
well-conceived
option
transaction
may
be
unsuccessful
because
of
market
behavior
or
unexpected
events.
The
prices
of
options
can
be
highly
volatile
and
the
use
of
options
can
lower
total
returns.
FASB
ASC
815,
“Derivatives
and
Hedging”
(“ASC
815”),
is
intended
to
improve
financial
reporting
about
deriv-
ative
instruments
by
requiring
enhanced
disclosures
to
enable
investors
to
better
understand
how
and
why
the
Fund
uses
derivative
instruments,
how
these
derivative
instruments
are
accounted
for
and
their
effects
on
the
Fund’s
financial
position
and
results
of
operations.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
17
Morgan
Stanley
ETF
Trust
The
following
tables
set
forth
the
fair
value
of
the
Fund’s
derivative
contracts
by
primary
risk
exposure
as
of
March
31,
2024:
The
following
tables
set
forth
by
primary
risk
exposure
the
Fund’s
realized
gains
(losses)
and
change
in
unrealized
appreciation
(depreciation)
by
type
of
derivative
contract
for
the
period
ended
March
31,
2024
in
accordance
with
ASC
815:
At
March
31,
2024,
the
Fund's
derivative
assets
and
liabilities
are
as
follows:
4.
Indemnifications:
The Trust
enters
into
contracts
that
contain
a
variety
of
indemnification
clauses.
The
Trust’s
maximum
exposure
under
these
arrangements
is
un-
known
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not yet
occurred. 
5.
Dividends
and
Distributions
to
Shareholders: 
Divi-
dends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
in-
come,
if
any,
are
declared
and
paid
quarterly.
Net
realized
capital
gains,
if
any,
are
distributed
at
least
annually.
6.
Security
Transactions
and Income:
Security
trans-
actions
are
accounted
for
on
the
trade
date
(date
the
order
to
buy
or
sell
is
executed).
Realized
gains
and
losses
on
the
sale
of
investment
securities
are
determined
on
the
specific
identified
cost
method.
Dividend
income
and
other
distributions
are
recorded
on
the
ex-dividend
date
(except
for
certain
foreign
dividends
which
may
be
recorded
as
soon
as
the
Fund
is
informed
of
such
div-
idends)
net
of
applicable
withholding
taxes.
Non-cash
dividends
received
in
the
form
of
stock,
if
any,
are
recog-
nized
on
the
ex-dividend
date
and
recorded
as
non-cash
dividend
at
fair
value.
B.
Management/Sub-Advisory Fees:
 The
Adviser
provides
investment
advice
and
portfolio
management
services
pursuant
to
a
Management
Agreement
(the
“Agreement”)
and,
subject
to
the
supervision
of
the
Trust’s
Trustees,
makes
or
oversees
the
Fund’s
day-to-day
investment
decisions,
arranges
for
the
execution
of
portfolio
transactions
and
generally
manages
the
Fund’s
investments.
 As
compensation
for
its
services,
the
Adviser
is paid 
monthly
at
the
annual
rate
of
0.29% of
the
average
daily
net
assets
of
the
Fund.
Under
the
Agreement,
the
Adviser pays substantially
all
the
expenses
of
the
Fund
(in-
cluding
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.
The
Adviser
has
entered
into
a
Sub-Advisory
Agreement
with
the
Sub-Adviser,
a
wholly-owned
subsidiary
of
Morgan
Stanley.
The
Sub-Adviser
provides
the
Fund
with
investment
advisory
services
subject
to
the
overall
supervision
of
the
Adviser
and
the
Trust's
Officers
and
Trustees.
The
Adviser
pays
the
Sub-Adviser
on
a
monthly
basis
a
portion
of
the
net
advisory
fees
the
Advis-
er
receives
from
the
Fund.
C.
Distribution
and
Shareholder Services
Plan:
The
Trustees
have
adopted
a
distribution
and
services
plan
("Plan")
pursuant
Rule
12b-1
under the
Act. 
Under the
Plan,
the
Fund
is
authorized
to
pay
distribution
fees
in
connection
with
the
Asset
Derivatives
Statement
of
Assets
and
Primary
Risk
Value
Liabilities
Location
Exposure
Purchased
Option
Contracts
Investments,
at
Value
(Purchased
Option
Contracts)
Equity
Risk
$292,470
(a)
Liability
Derivatives
Statement
of
Assets
and
Primary
Risk
Liabilities
Location
Exposure
Value
Written
Option
Contracts
Written
Option
Contracts,
at
Value
Equity
Risk
$(2,397,346
)
(a)
Amounts
are
included
in
Investments
in
Securities
in
the
Statement
of
Assets
and
Liabilities.
Realized
Gain
(Loss)
Primary
Risk
Exposure
Derivative
Type
Value
Equity
Risk
Investments
(Purchased
Option
Contracts)
$(149,023
)(a)
Equity
Risk
Written
Option
Contracts
$(705,337
)
Total
$(854,360
)
Change
in
Unrealized
Appreciation
(Depreciation)
Primary
Risk
Exposure
Derivative
Type
Value
Equity
Risk
Investments
(Purchased
Option
Contracts)
$(348,612
)(b)
Equity
Risk
Written
Option
Contracts
$(1,220,358
)
Total
$(1,568,970
)
(a)
Amounts
are
included
in
Realized
Gain
(loss)
on
Investments
Sold
in
the
Statement
of
Operations.
(b)
Amounts
are
included
in
Change
in
Unrealized
Appreciation
(Depreciation)
on
Investments
in
the
Statement
of
Operations.
Purchased
Option
Contracts:
Average
monthly
notional
amount
.................
$268,280
Written
Option
Contracts:
Average
monthly
notional
amount
.................
$1,069,131
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
18
Morgan
Stanley
ETF
Trust
sale
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.
No
Rule
12b-1
fees
are
currently
paid
by
the
Fund
and
there
are
no
current
plans
to
impose
these
fees.
.
D. Dividend
Disbursing
and
Transfer
Agent:
The
Trust’s
dividend
disbursing
and
transfer
agent
is
JPMorgan
Chase
Bank,
N.A.
("JPMorgan").
.
E.
Custodian
and
Administrator:
JPMorgan also
serves
as
Custodian
and
Administrator for
the
Trust in
accordance
with
a
Custodian
and
Administration Agreement.
.
F.
Issuance
and
Redemption
of
Fund
Shares:
The
Fund
is
an
exchange-traded
fund
or
ETF.
Individual
Fund
shares
may
only
be
purchased
and
sold
on
a
national
securities
exchange
through
a
broker-dealer
and
investors
may
pay
a
commission
to
such
broker-dealers
in
connection
with
their
purchase
or
sale.
The
price
of
Fund
shares
is
based
on
market
price,
and
because
ETF
shares
trade
at
market
prices
rather
than
NAV,
shares
may
trade
at
a
price
greater
than
NAV
(a
premium)
or
less
than
NAV
(a
discount). 
The
Fund
will
only
issue
or
redeem
shares
aggregated
into
blocks
of 50,000
shares
or
multiples
thereof
(“Creation
Units”)
to
Authorized
Participants
who
have
entered
into
agreements
with
the
Fund’s
Distributor.
An
Authorized
Participant
is
either
(1)
a
“Participating
Party,”
(i.e.,
a
broker-dealer
or
other
participant
in
the
clearing
process
of
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corpo-
ration)
(“Clearing
Process”),
or
(2)
a
participant
of
Depository
Trust
Company (“DTC
Participant”),
and,
in
each
case,
must
have
executed
an
agreement
(“Participation
Agreement”)
with
the
Distributor
with
respect
to
creations
and
redemptions
of
Creation
Units.
The
Fund
will
issue
or
redeem
Creation
Units
in
return
for
a
basket
of
assets
that
the
Fund
specifies
each
day.
Shares
are
listed
on
the
New
York
Stock
Exchange Arca
("NYSE
Arca") and
are
publicly
traded.
If an
investor buys
or
sells
Fund
shares
on
the
secondary
market, the
investor will
pay
or
receive
the
market
price,
which
may
be
higher
or
lower
than
NAV. The
investor's transaction
will
be
priced
at
NAV
if the
investor purchases
or
redeems
Fund
shares
in
Creation
Units.
Authorized
Participants
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
the
Fund's
Administrator
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Additionally,
a
portion
of
the
transaction
fee
is
used
to
offset
transactional
costs
typically
accrued
in
the
Fund's
cus-
tody
expenses
directly
related
to
the
issuance
and
redemption
of
Creation
Units.
An
additional
variable
fee
may
be
charged
for
certain
transactions.
Such
fees
would
be
included
in
the
re-
ceivable
for
capital
shares
issued
on
the
Statement
of
Assets
and
Liabilities
if
they
are
outstanding
as
of
year-
end. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statements
of
Changes
in
Net
Assets.
.
G.
Security
Transactions
and
Transactions
with
Affil-
iates:
 For
the
period ended
March
31,
2024 purchases
and
sales
of
investment
securities
for
the
Fund,
other
than
long-
term
U.S.
Government
securities,
short-term
investments
and
In-Kind transactions were $20,274,876
and
$1,001,551,
respectively.
There
were
no
purchases
and
sales
of
long-term
U.S.
Government
securities
for
the
period
ended
March
31,
2024. Purchase
and
Sales
related
to
In-Kind
transactions
were
$12,504,730 and
$-0- for
period ended
March
31,
2024.
.
The
Fund
invests
in
the
Institutional
Class
of
the
Morgan
Stanley
Institutional
Liquidity
Funds
Government
Portfolio
(the
“Liquidity
Fund”),
an
open-end
management
investment
company
managed
by
the
Adviser. Management fees
paid
by
the
Fund
are
reduced
by
an
amount
equal
to
its
pro-rata
share
of
the management
fees
paid
by
the
Fund
due
to
its
invest-
ment
in
the
Liquidity
Fund.
For
the
period ended
March
31,
2024, management
fees
paid
were
reduced
by $280 relating
to
the
Fund’s
investment
in
the
Liquidity
Fund. 
A
summary
of
the
Fund’s
transactions
in
shares
of
affiliated
investments
during
the
period ended
March
31,
2024 is
as
follows: 
Affiliated
Investment
Company
Value
October
16,
2023
*
(000)
Purchases
at
Cost
(000)
Proceeds
from
Sales
(000)
Dividend
Income
(000)
Liquidity
Fund
$
$
8,312
$
7,877
$
10
Morgan
Stanley
88
1
Affiliated
Investment
Company
(cont'd)
Realized
Gain
(Loss)
(000)
Change
in
Unrealized
Appreciation
(Depreciation)
(000)
Value
March
31,
2024
(000)
Liquidity
Fund  
$
$
$
435
Morgan
Stanley  
13
101
*
Commencement
of
Operations.
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
19
Morgan
Stanley
ETF
Trust
H.
Federal
Income
Taxes:
It
is
the
Fund’s
intention
to
continue
to
qualify
as
a
regulated
investment
company
and
distribute
all
of
its
taxable
and
tax
exempt income.
Accord-
ingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements. 
.
The
Fund
may
be
subject
to
taxes
imposed
by
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/
or
capital
gains
earned
or
repatriated.
Taxes
are
accrued
based
on
net
investment
income,
net
realized
gains
and
net
unreal-
ized
appreciation
as
such
income
and/or
gains
are
earned.
Taxes
may
also
be
based
on
transactions
in
foreign
currency
and
are
accrued
based
on
the
value
of
investments
denominated
in
such
currency.
FASB
ASC
740-10,
“Income
Taxes—Overall”,
sets
forth
a
minimum
threshold
for
financial
statement
recognition
of
the
benefit
of
a
tax
position
taken
or
expected
to
be
taken
in
a
tax
return.
Management
has
concluded
there
are
no
significant
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
If
applicable,
the
Fund
recognizes
inter-
est
accrued
related
to
unrecognized
tax
benefits
in
“Interest
Expense”
and
penalties
in
“Other
Expenses”
in
the
Statement
of
Operations.
The
Fund
files
tax
returns
with
the
U.S.
Internal
Revenue
Service,
New
York
and
various
states.
I.
Principal
Risks:
.
Market Risk:
The
value
of
an
investment
in
the
Fund
is
based
on
the
values
of
the
Fund’s
investments,
which
change
due
to
economic
and
other
events
that
affect
markets
generally,
as
well
as
those
that
affect
particular
regions,
countries,
industries,
companies
or
governments.
The
risks
associated
with
these
developments
may
be
magnified
if
certain
social,
political,
eco-
nomic
and
other
conditions
and
events
adversely
interrupt
the
global
economy
and
financial
markets.
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
and
extreme
weather
events,
health
emergencies
(such
as
epidemics
and
pandemics),
terrorism,
regulatory
events
and
governmental
or
quasi-gov-
ernmental
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
politi-
cal
(including
geopolitical)
discord
and
tensions
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.
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,
and
exacerbate
preexisting
risks
to
the
Fund.
The
occurrence,
duration
and
extent
of
these
or
other
types
of
adverse
economic
and
market
conditions
and
uncer-
tainty
over
the
long
term
cannot
be
reasonably
projected
or
estimated
at
this
time.
The
ultimate
impact
of
public
health
emergencies
or
other
adverse
economic
or
market
develop-
ments
and
the
extent
to
which
the
associated
conditions
impact
the
Fund
and
its
investments
will
also
depend
on
other
future
developments,
which
are
highly
uncertain,
difficult
to
accurately
predict
and
subject
to
change
at
any
time.
The
finan-
cial
performance
of
the
Fund’s
investments
(and,
in
turn,
the
Fund’s
investment
results)
as
well
as
their
liquidity
may
be
ad-
versely
affected
because
of
these
and
similar
types
of
factors
and
developments,
which
may
in
turn
impact
valuation,
the
Fund’s
ability
to
sell
securities
and/or
its
ability
to
meet
redemptions.
The
Fund's
principal
risks
include,
but
are
not
limited
to,
the
following:
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.
There
can
be
no
assurance
that
an
active
trading
market
for
the
Fund’s
shares
will
develop
or
be
maintained.
To
the
extent
that
these
inter-
mediaries
exit
the
business
or
are
unable
to
or
choose
not
to
proceed
with
creation
and/or
redemption
orders
with
respect
to
the
Fund,
such
as
during
periods
of
market
stress,
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.
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.
Disrup-
tions
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
oth-
er
factors,
may
result
in
the
shares
trading
significantly
above
(at
a
premium)
or
below
(at
a
discount)
to
NAV
or
to
the
intr-
aday
value
of
the
Fund’s
holdings
(and,
as
a
result,
an
investor
may
pay
more
for,
or
receive
less
than,
the
underlying
value
of
the
shares,
respectively).
You
may
pay
significantly
more
or
re-
ceive
significantly
less
than
NAV
during
periods
when
there
is
a
Semi-Annual
Report
March
31,
2024
(unaudited)
Notes
to
Financial
Statements
(cont’d)
20
Morgan
Stanley
ETF
Trust
significant
premium
or
discount.
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
the
Fund’s
shares
varies
over
time
based
on
the
Fund’s
trad-
ing
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. 
Large
Shareholder
Transaction
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
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
negative-
ly
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
circumstanc-
es,
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. 
21
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
Morgan
Stanley
ETF
Trust
The
Board
considered
the
following
factors
at
the
time
of
approval
of
the
contracts
which
occurred
prior
to
commencement
of
operations.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
the
nature
and
extent
of
the
investment
advisory
and
portfolio
management
services
to
be
provided
by
the
Adviser
and
Sub-Adviser
under
the
investment
management
agreement
and
the
sub-advisory
agreement
(collec-
tively,
the
“Management
Agreement”),
respectively,
including
portfolio
management,
investment
research
and
equity
and
fixed
income
securities
trading.
The
Board
reviewed
similar
information
and
factors
regarding
the
Sub-Adviser,
to
the
extent
applicable.
The
Board
also
reviewed
and
considered
the
nature
and
extent
of
the
non-advisory
services
to
be
provided
by
the
Adviser
under
the
Management
Agreement,
including
operations,
compliance,
business
management
and
planning,
legal
services
and
the
provision
of
supplies,
office
space
and
utilities
at
the
Adviser’s
expense.
The
Board
also
considered
the
Adviser’s
investment
in
personnel
and
infrastructure
that
benefits
the
Fund.
(The
Adviser
and
Sub-Adviser
are
referred
to
as
the
“Adviser.”)
The
Board
also
considered
that
the
Adviser
serves
a
variety
of
other
investment
advisory
clients
and
has
experience
overseeing
service
providers.
The
Board
reviewed
and
considered
the
qualifications
of
the
portfolio
managers
and
other
key
personnel
of
the
Adviser
who
will
provide
the
advisory
services
to
the
Fund.
The
Board
determined
that
the
Adviser's
portfolio
managers
and
key
personnel
are
well
qualified
by
education
and/or
training
and
experience
to
perform
the
services
in
an
efficient
and
professional
manner.
The
Board
concluded
that
the
nature
and
extent
of
the
advisory
services
to
be
provided
were
necessary
and
appropriate
for
the
conduct
of
the
business
and
investment
activities
of
the
Fund
and
supported
its
decision
to
approve
the
Management
Agreement.
Performance,
Fees
and
Expenses
of
the
Fund
The
Board
considered
that
the
Adviser
plans
to
arrange
for
a
public
offering
of
shares
of
the
Fund
to
raise
assets
for
investment
and
that
the
offering
had
not
yet
begun
and
concluded
that,
since
the
Fund
currently
had
no
assets
to
invest
(other
than
seed
capital
required
under
the
Investment
Company
Act)
and
had
no
track
record
of
performance,
this
was
not
a
factor
it
needed
to
address
at
the
present
time.
The
Board
reviewed
the
unitary
management
fee
(the
“management
fee
rate”)
proposed
to
be
paid
by
the
Fund
under
the
Manage-
ment
Agreement,
pursuant
to
which
the
Adviser
would
pay
substantially
all
of
the
operating
expenses
of
the
Fund,
subject
to
certain
exceptions.
The
Board
considered
the
benefits
of
a
unitary
fee
structure
and
considered
the
management
fee
rate
relative
to
compa-
rable
funds
advised
by
the
Adviser
or
its
affiliates,
when
applicable,
and
compared
to
peers
as
determined
by
the
Adviser.
The
Board
reviewed
the
anticipated
total
expense
ratio
of
the
Fund,
which,
due
to
the
unitary
management
fee
structure,
was
equal
to
the
proposed
management
fee
rate.
The
Board
also
considered
that
the
fees
charged
by
the
Fund’s
other
service
providers
would
be
paid
by
the
Adviser
under
the
unitary
management
fee
structure.
The
Board
considered
that
the
Fund
requires
the
Adviser
to
develop
processes,
invest
in
additional
resources
and
incur
additional
risks
to
successfully
manage
the
Fund
and
concluded
that
the
proposed
management
fee
rate
and
anticipated
total
expense
ratio
would
be
competitive
with
its
peer
group
averages.
Economies
of
Scale
The
Board
considered
the
growth
prospects
of
the
Fund
and
the
proposed
unitary
management
fee
schedule,
which
does
not
in-
clude
breakpoints.
The
Board
considered
that
the
unitary
management
fee
rate
was
set
at
a
level
to
anticipate
economies
of
scale
at
lower
asset
levels
before
economies
of
scale
are
achieved
(if
ever).
The
Board
also
considered
that
the
unitary
management
fee
struc-
ture
inherently
reflects
certain
economies
of
scale
because
the
management
fee
rate
is
fixed
at
a
competitive
level
over
the
contract
period
and
therefore
the
management
fee
rate
paid
by
the
Fund
will
not
increase
in
the
future
even
if
the
Fund’s
operating
costs
rise
and
assets
remain
flat
or
decrease.
The
Board
also
considered
that
increases
in
the
Fund’s
assets
would
not
lead
to
a
reduction
to
the
unitary
management
fee
rate
paid
by
the
Fund
in
the
future
even
if
economies
of
scale
were
achieved.
The
Board
considered
that
the
Fund’s
potential
growth
was
uncertain
and
concluded
that
it
would
be
premature
to
consider
economies
of
scale
as
a
factor
in
approving
the
Management
Agreement
at
the
present
time.
Profitability
of
the
Adviser
and
Affiliates
Since
the
Fund
had
not
begun
operations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
this
was
not
a
factor
that
needed
to
be
considered
at
the
present
time.
Semi-Annual
Report
March
31,
2024
(unaudited)
Investment
Advisory
Agreement
Approval
(cont’d)
22
Morgan
Stanley
ETF
Trust
Other
Benefits
of
the
Relationship
The
Board
considered
other
direct
and
indirect
benefits
to
the
Adviser
and/or
its
affiliates
to
be
derived
from
their
relationship
with
the
Fund
and
other
funds
advised
by
the
Adviser.
These
benefits
may
include,
among
other
things,
fees
for
trading,
distribution
and/or
shareholder
servicing
and
for
transaction
processing
and
reporting
platforms
used
by
securities
lending
agents,
and
research
received
by
the
Adviser
generated
from
commission
dollars
spent
on
funds’
portfolio
trading.
Since
the
Fund
had
not
begun
oper-
ations
and
had
not
paid
any
fees
to
the
Adviser,
the
Board
concluded
that
these
benefits
were
not
a
factor
that
needed
to
be
consid-
ered
at
the
present
time.
Resources
of
the
Adviser
and
Historical
Relationship
Between
the
Fund
and
the
Adviser
The
Board
considered
whether
the
Adviser
is
financially
sound
and
has
the
resources
necessary
to
perform
its
obligations
under
the
Management
Agreement.
The
Board
also
reviewed
and
considered
the
organizational
structure
of
the
Adviser,
the
policies
and
procedures
formulated
and
adopted
by
the
Adviser
for
managing
the
Fund’s
operations
and
the
Board’s
confidence
in
the
compe-
tence
and
integrity
of
the
senior
managers
and
key
personnel
of
the
Adviser.
The
Board
concluded
that
the
Adviser
has
the
financial
resources
necessary
to
fulfill
its
obligations
under
the
Management
Agreement
and
that
it
is
beneficial
for
the
Fund
to
enter
into
this
relationship
with
the
Adviser.
Other
Factors
and
Current
Trends
The
Board
considered
the
controls
and
procedures
adopted
and
implemented
by
the
Adviser
and
monitored
by
the
Fund’s
Chief
Compliance
Officer
and
concluded
that
the
conduct
of
business
by
the
Adviser
indicates
a
good
faith
effort
on
its
part
to
adhere
to
high
ethical
standards
in
the
conduct
of
the
Fund’s
business.
General
Conclusion
After
considering
and
weighing
all
of
the
above
factors,
with
various
written
materials
and
verbal
information
presented
by
the
Ad-
viser,
the
Board
concluded
that
it
would
be
in
the
best
interest
of
the
Fund
and
its
future
shareholders
to
approve
the
Management
Agreement,
which
will
remain
in
effect
for
two
years
and
thereafter
must
be
approved
annually
by
the
Board
of
the
Fund
if
it
is
to
continue
in
effect.
In
reaching
this
conclusion
the
Board
did
not
give
particular
weight
to
any
single
piece
of
information
or
factor
referenced
above.
It
is
possible
that
individual
Board
members
may
have
weighed
these
factors,
and
the
information
presented,
differently
in
reaching
their
individual
decisions
to
approve
the
Management
Agreement.
23
Semi-Annual
Report
March
31,
2024
(unaudited)
Liquidity
Risk
Management
Program*
Morgan
Stanley
ETF
Trust
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Liquidity
Rule"),
the
Fund
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
"Program"),
which
is
reasonably
designed
to
assess
and
man-
age
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors'
interests
in
the
Fund
(i.e.,
liquidity
risk).
The
Fund's
Board
of
Trustees
(the
"Board")
previously
approved
the
designation
of
the
Liquidity
Risk
Subcommittee
(the
"LRS")
as
Program
administrator.
The
LRS
is
comprised
of
representatives
from
various
divisions
within
Morgan
Stanley
Investment
Management.
At
a
meeting
held
on
March
13-24,
2024,
the
Board
reviewed
a
written
report
prepared
by
the
LRS
that
addressed
the
Program's
operation
and
assessed
its
adequacy,
and
effectiveness
of
implementation
for
the
period
from
January
1,
2023,
through
December
31,
2023,
as
required
under
the
Liquidity
Rule.
The
report
concluded
that
the
Program
operated
effectively
and
was
adequately
and
effectively
implemented
in
all
material
aspects,
and
that
the
relevant
controls
and
safeguards
were
appropriately
designed
to
enable
the
LRS
to
administer
the
Program
in
compliance
with
the
Liquidity
Rule.
In
accordance
with
the
Program,
the
Fund's
liquidity
risk
is
assessed
by
LRS no
less
frequently
than
annually
taking
into
consider-
ation
certain
factors,
as
applicable,
such
as
(i)
investment
strategy
and
liquidity
of
portfolio
investments,
(ii)
short-term
and
long-
term
cash
flow
projections
and
(iii)
holdings
of
cash
and
cash
equivalents
and
borrowing
arrangements
and
other
funding
sources.
Certain
factors
are
considered
under
both
normal
and
reasonably
foreseeable
stressed
conditions.
Each
Fund
portfolio
investment
is
classified
into
one
of
four
liquidity
categories,
which
classification
is
assessed
at
least
monthly
by
the
LRS.
The
classification
is
based
on
a
determination
of
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
invest-
ment
into
cash,
or
sell
or
dispose
of
the
investment,
in
current
market
conditions
without
significantly
changing
the
market
value
of
the
investment.
Liquidity
classification
determinations
take
into
account
various
market,
trading
and
investment-specific
consider-
ations,
as
well
as
market
depth,
and
in
some
cases
utilize
third-party
vendor
data.
The
Liquidity
Rule
limits
a
fund's
investments
in
illiquid
investments
to
15%
of
its
net
assets
and
requires
funds
that
do
not
pri-
marily
hold
assets
that
are
highly
liquid
investments
to
determine
and
maintain
a
minimum
percentage
of
the
fund's
net
assets
to
be
invested
in
highly
liquid
investments
(highly
liquid
investment
minimum
or
"HLIM").
The
LRS
believes
that
the
Program
includes
provisions
reasonably
designed
to
review,
monitor
and
comply
with
the
15%
limit
on
illiquid
investments
and
for
determining,
periodically
reviewing
and
complying
with
the
HLIM
requirement,
as
applicable.
There
can
be
no
assurance
that
the
Program
will
achieve
its
objectives
under
all
circumstances
in
the
future.
Please
refer
to
the
Fund's
prospectus
for
more
information
regarding
the
Fund's
exposure
to
liquidity
risk
and
other
risks
to
which
it
may
be
subject.
*
The
Fund
commenced
operations
subsequent
to
the
period
covered
by
the
report,
which
applied
to
other funds
of
the
Trust
during
that
period.
However,
during
the
period
ended
March
31,
2024,
the
Program
applied
to
the
Fund.
24
Semi-Annual
Report
March
31,
2024
(unaudited)
Important
Notices
Morgan
Stanley
ETF
Trust
Reporting
to
Shareholders
The
Fund’s
portfolio
holdings
are
publicly
disseminated
each
day
the
Fund
is
open
for
business
through
financial
reporting
and
news
services,
including
publicly
accessible
Internet
web
sites.
In
addition,
a
basket
composition
file,
which
includes
the
securi-
ty
names
and
share
quantities
to
deliver
in
exchange
for
Creation
Units,
together
with
estimates
and
actual
cash
components
is
publicly
disseminated
daily
prior
to
the
opening
of
the
Exchange
via
the
National
Securities
Clearing
Corporation
(the
“NSCC”),
a
clearing
agency
that
is
registered
with
the
SEC.
The
basket
represents
one
Creation
Unit
of
the
Fund.
The
Trust,
Adviser,
Custo-
dian
and
Distributor
will
not
disseminate
non-public
information
concerning
the
Trust.
The
Trust
provides
a
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
fiscal
quarters
in
its
Semi-Annual
and
Annual
reports,
and
for
the
first
and
third
fiscal
quarters
in
its
filings
with
the
SEC
as
an
exhibit
to
Form
N-PORT.
The
Fund's
portfolio
holdings
will
be
available
on
the
Fund’s
public
website,
www.morganstanley.com/im.
Proxy
Voting
Policy
and
Proxy
Voting
Record
The
Board
of
Trustees
believes
that
the
voting
of
proxies
on
securities
held
by
the
Trust
is
an
important
element
of
the
overall
invest-
ment
process.
As
such,
the
Trustees
have
delegated
the
responsibility
to
vote
such
proxies
to
the
Adviser.
A
copy
of
the
Proxy
Policy,
as
well
as
the
Trust’s
most
recent
proxy
voting
record
for
the
12-month
period
ended
June
30,
as
filed
with
the
SEC,
are
available
without
charge
on
our
web
site
at
www.morganstanley.com/im.
The
Trust’s
proxy
voting
record
is
also
available
without
charge
on
the
SEC’s
web
site
at
http://www.sec.gov.
Tailored
Shareholder
Reports
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
on-
line,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Morgan
Stanley
Funds.
25
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
February
2024
Morgan
Stanley
ETF
Trust
FACTS
WHAT
DOES
MSIM
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
Social
Security
number
and
income
investment
experience
and
risk
tolerance
checking
account
number
and
wire
transfer
instructions
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information;
the
reasons
MSIM
chooses
to
share;
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
MSIM
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
such
as
to
process
your
transactions,
maintain
your
account(s),
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
to
offer
our
products
and
services
to
you
Yes
No
For
joint
marketing
with
other
financial
companies
No
We
don’t
share
For
our
affiliates’
everyday
business
purposes
information
about
your
transactions
and
experiences
Yes
No*
For
our
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
Yes
Yes*
For
our
affiliates
to
market
to
you
Yes
Yes*
For
non-affiliates
to
market
to
you
No
We
don’t
share
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
26
February
2024
Morgan
Stanley
ETF
Trust
To
limit
our
sharing
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
your
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
toll-free
(844)
312-6327
or
email:
imprivacyinquiries@morganstanley.com
Who
we
are
Who
is
providing
this
notice?
Morgan
Stanley
Investment
Management
Inc.
and
its
investment
management
affiliates
(“MSIM”)
(see
Affiliates
definition
below)
What
we
do
How
does
MSIM
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
We
have
policies
governing
the
proper
handling
of
customer
information
by
personnel
and
requiring
third
parties
that
provide
support
to
adhere
to
appropriate
security
standards
with
respect
to
such
information.
How
does
MSIM
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you
open
an
account
or
make
deposits
or
withdrawals
from
your
account
buy
securities
from
us
or
make
a
wire
transfer
give
us
your
contact
information
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only
sharing
for
affiliates’
everyday
business
purposes
information
about
your
creditworthiness
affiliates
from
using
your
information
to
market
to
you
sharing
for
non-affiliates
to
market
to
you
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Semi-Annual
Report
March
31,
2024
(unaudited)
U.S.
Customer
Privacy
Notice
(cont’d)
27
February
2024
Morgan
Stanley
ETF
Trust
Definitions
Affiliates
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
Our
affiliates
include
registered
investment
advisers
such
as
Eaton
Vance
Management
and
Calvert
Research
and
Management,
registered
broker-dealers
such
as
Morgan
Stanley
Distributors
Inc.
and
Eaton
Vance
Distributors,
Inc.,
and
registered
and
unregistered
funds
sponsored
by
Morgan
Stanley
Investment
Management
such
as
the
registered
funds
within
Morgan
Stanley
Institutional
Fund,
Inc.
(together,
the
“Investment
Management
Affiliates”);
and
companies
with
a
Morgan
Stanley
name
and
financial
companies
such
as
Morgan
Stanley
Barney
LLC
and
Morgan
Stanley
&
Co.
(the,
“Morgan
Stanley
Affiliates”).
Non-affiliates
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
non-financial
companies.
MSIM
does
not
share
with
non-affiliates
so
they
can
market
to
you.
Joint
marketing
A
formal
agreement
between
non-affiliated
financial
companies
that
together
market
financial
products
or
services
to
you.
MSIM
doesn’t
jointly
market
Other
Important
Information
*PLEASE
NOTE:
MSIM
does
not
share
your
creditworthiness
information
or
your
transactions
and
experiences
information
with
the
Morgan
Stanley
Affiliates,
nor
does
MSIM
enable
the
Morgan
Stanley
Affiliates
to
market
to
you.
Your
opt
outs
will
prevent
MSIM
from
sharing
your
creditworthiness
information
with
the
Investment
Management
Affiliates
and
will
prevent
the
Investment
Management
Affiliates
from
marketing
their
products
to
you.
Vermont:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
Vermont
residents
with
Non-affiliates
unless
you
provide
us
with
your
written
consent
to
share
such
information.
California:
Except
as
permitted
by
law,
we
will
not
share
personal
information
we
collect
about
California
residents
with
Non-affiliates
and
we
will
limit
sharing
such
personal
information
with
our
Affiliates
to
comply
with
California
privacy
laws
that
apply
to
us.
28
Morgan
Stanley
ETF
Trust
Semi-Annual
Report
March
31,
2024
(unaudited)
Trustees
and
Officers
Information
Trustees
Frank
L
Bowman
Frances
L.
Cashman
Kathleen
A.
Dennis
Nancy
C.
Everett
Eddie
A.
Grier
Jakki
L.
Haussler
Dr.
Manuel
H.
Johnson
Michael
F.
Klein
Patricia
A
Maleski
W.
Allen
Reed,
Chair
of
the
Board
Adviser
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036
Sub-Adviser
Parametric
Portfolio
Associates
LLC
800
Fifth
Avenue
Suite
2800
Seattle,
Washington
98104
Distributor
Foreside
Fund
Services,
LLC
3
Canal
Plaza
Suite
100
Portland,
Maine
04101
Dividend
Disbursing
and
Transfer
Agent
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Custodian
and
Administrator
JPMorgan
Chase
Bank,
N.A.
1111
Polaris
Parkway
Columbus,
Ohio
43240
Officers
John
H.
Gernon
President
and
Principal
Executive
Officer
Deidre
A.
Downes
Chief
Compliance
Officer
Francis
J.
Smith
Treasurer
and
Principal
Financial
Officer
Mary
E.
Mullin
Secretary
and
Chief
Legal
Officer
Michael
J.
Key
Vice
President
Anthony
R.
Rochte
Vice
President
Legal
Counsel
Dechert
LLP
1095
Avenue
of
the
Americas
New
York,
New
York
10036
Counsel
to
the
Independent
Trustees
Morgan,
Lewis,
Bockius
LLP
One
State
Street
Hartford,
Connecticut
06103
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
PARAMETHDGEQTYETFSAN
6598689
EXP
05.31.25
Printed
in
U.S.A. 
This
Report
has
been
prepared
for
shareholders
and
may
be
distributed
to
others
only
if
preceded
or
accompanied
by
a
current
prospectus.
Morgan
Stanley
Investment
Management
Inc.
1585
Broadway
New
York,
New
York
10036 
©
2024
Morgan
Stanley.
Morgan
Stanley
Distribution,
Inc. 
Item 2.  Code of Ethics.
 
Not applicable for semiannual reports.
             
 
Item 3.  Audit Committee Financial Expert.
 
Not applicable for semiannual reports.
 
 
Item 4. Principal Accountant Fees and Services
 
Not applicable for semiannual reports.
 
 
Item 5. Audit Committee of Listed Registrants.
 
Not applicable for semiannual reports.
 
 
Item 6.
 
(a) Refer to Item 1.
 
(b) Not applicable.
 
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
 
Not applicable.
 
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies
 
Applicable only to annual reports filed by closed-end funds.
 
 
Item 9. Closed-End Fund Repurchases
 
Applicable to reports filed by closed-end funds.
 
 
Item 10. Submission of Matters to a Vote of Security Holders
 
There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item.
 
 
Item 11. Controls and Procedures
 
(a)  The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.
 
(b)  There were no changes in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
 
Item 12. Disclosure of Securities Lending Activities for Closed End Management Investment Companies.
 
Not Applicable.
 
 
Item 13. Exhibits
 
(a) Code of Ethics – Not applicable for semiannual reports.
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
SIGNATURES
 
            Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Morgan Stanley ETF Trust
 
/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
May 21, 2024
 
            Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
May 21, 2024
 
/s/ Francis J. Smith
Francis J. Smith
Principal Financial Officer
May 21, 2024