QUICK SPARK: Morgan Stanley Moves $10B of Municipal Funds Into ETFs as Active Investing Grows

Morgan Stanley Investment Management plans to convert eight municipal bond mutual funds, totaling nearly $10 billion in assets, into ETFs pending shareholder approval. Seven of these funds will become newly created actively managed ETFs, while one will be reorganized into the existing Eaton Vance Short Duration Municipal Income ETF (NYSE: EVSM). This initiative aims to enhance Morgan Stanley's municipal ETF offerings, which have seen growth in the fixed-income ETF market, and follows previous successful conversions, such as the Eaton Vance Total Return Bond ETF, which grew from $363 million to over $6 billion post-conversion.