Morgan Stanley returns to ETF market with fund meant to limit losses
DariaRen

After remaining dormant for years, Morgan Stanley (NYSE:MS) jumped back into the global exchange traded fund marketplace with the launch of the Innovator Equity Managed Floor ETF (SFLR) on Wednesday.
SFLR is a new fund that comes attached with a 0.89% expense ratio, 256 holdings and aims to provide investors with equity upside participation with actively managed floors that seek to limit losses to 10% each year.
The SFLR fund is comprised of predominantly S&P 500 stocks with a blend of an options overlay. Among the stock holdings, its top three positions include Apple (AAPL), Microsoft Corp. (MSFT), and Amazon (AMZN) weighted at 6.82%, 5.14%, and 2.46%, respectively.
Aside from its top three stocks, other megacap names fall in SFLRâs top 10 holdings. Some names include Tesla (TSLA) and Alphabet (GOOG), (GOOGL).
See below a complete sector breakdown and weighting towards market segments for SFLR below:

Additionally, the exchange traded fund will be sub-advised by Parametric Portfolio Associates. With regards to the unveiling, Thomas Lee, CIO of Parametric stated:
âWe believe that managing risk can elevate investorsâ expected outcomes over the long-term. The disciplined and transparent nature of the option methodology that underpins SFLR can potentially provide a durable and central core holding in many portfolios, able to add true value across a range of market environment.â
In broader financial news, major market averages opened up trading lower on Wednesday as investors digest the results available so far from the midterm elections.