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)

522 Fifth Avenue, New York, New York 10036

(Address of principal executive offices)                                            (Zip code)

John H. Gernon

522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

Registrant's telephone number, including area code: 212-296-0289

Date of fiscal year end: September 30.

Date of reporting period: March 31, 2023.

Item 1 - Report to Shareholders

Morgan

Stanley

ETF

Trust

Calvert

International

Responsible

Index

ETF

NYSE

Arca:

CVIE

Semi-Annual

Report

March

31,

2023

Morgan

Stanley

ETF

Trust

Semi-Annual

Report

—

March

31,

2023

(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.calvert.com

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

Performance

Summary

.....................................................................................

3

Portfolio

of

Investments

.....................................................................................

4

Statement

of

Assets

and

Liabilities

..........................................................................

12

Statement

of

Operations

....................................................................................

13

Statement

of

Changes

in

Net

Assets

........................................................................

14

Financial

Highlights

.........................................................................................

15

Notes

to

Financial

Statements

...............................................................................

16

Investment

Advisory

Agreement

Approval

....................................................................

23

Liquidity

Risk

Management

Program

.........................................................................

25

U.S.

Customer

Privacy

Notice

...............................................................................

26

Trustees

and

Officers

Information

...........................................................................

29

2

Semi-Annual

Report

—

March

31,

2023

(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

Responsi-

ble

Index

ETF (the

“Fund”)

performed

during

the

period

beginning

January

30,

2023

(when

the

Fund

commenced

operations)

and

ended

March

31,

2023.

Morgan

Stanley

Investment

Management

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

challenges

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

2023

3

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Performance

Summary

Calvert

International

Responsible

Index

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/shareholderreports.

Investment

return

and

principal

value

will

fluctuate

so

that

Fund

shares,

when

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

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)

Cumulative

Total

Return

for

the

period

Ended

March

31,

2023

Since

Inception

(3)

Calvert

International

Responsible

Index

ETF

-

NAV

(4)

-0.27%

Calvert

International

Responsible

Index

ETF

-

Market

Price

(4)

0.15%

MSCI

World

ex

USA

Index

-0.39%

Calvert

International

Responsible

Index

0.04%

(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.

Expense

Example

Beginning

Account

Value

(1/30/23)

Actual

Ending

Account

Value

(3/31/23)

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

$997.30

$1,008.06

$0.30

$0.30

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

61/365

(to

reflect

the

actual

days

in

the

period).

**

Annualized.

^

The

Fund

commenced

operations

on

January

30,

2023.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

Calvert

International

Responsible

Index

ETF

4

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Shares

Value

Common

Stocks

(99.3%)

Australia

(4.9%)

Allkem

Ltd.(a)

2,274

$

18,093

ANZ

Group

Holdings

Ltd.

5,246

80,565

APA

Group

2,448

16,592

ASX

Ltd.

336

14,632

BlueScope

Steel

Ltd.

1,770

23,887

Brambles

Ltd.

2,805

25,230

Cochlear

Ltd.

128

20,291

Coles

Group

Ltd.

3,155

38,077

Commonwealth

Bank

of

Australia

2,730

179,770

Endeavour

Group

Ltd.

3,040

13,784

Fortescue

Metals

Group

Ltd.

4,633

69,785

IGO

Ltd.

2,623

22,434

Insurance

Australia

Group

Ltd.

4,293

13,485

Lynas

Rare

Earths

Ltd.(a)

3,525

14,968

Macquarie

Group

Ltd.

670

78,824

Medibank

Pvt.

Ltd.

4,804

10,811

National

Australia

Bank

Ltd.

4,565

84,751

Pilbara

Minerals

Ltd.

10,513

27,742

Qantas

Airways

Ltd.(a)

3,445

15,274

QBE

Insurance

Group

Ltd.

2,580

25,211

Ramsay

Health

Care

Ltd.

365

16,266

REA

Group

Ltd.

28

2,589

Reece

Ltd.

386

4,485

SEEK

Ltd.

554

8,875

Sonic

Healthcare

Ltd.

1,215

28,351

South32

Ltd.

15,058

44,072

Suncorp

Group

Ltd.

2,202

17,860

Telstra

Group

Ltd.

3,046

8,609

TPG

Telecom

Ltd.

2,650

8,661

Transurban

Group

7,535

71,712

Wesfarmers

Ltd.

2,029

68,286

Westpac

Banking

Corp.

5,368

77,873

Woolworths

Group

Ltd.

2,950

74,882

1,226,727

Austria

(0.2%)

Erste

Group

Bank

AG

384

12,724

Mondi

plc

385

6,103

Verbund

AG

132

11,473

voestalpine

AG

429

14,579

44,879

Belgium

(0.8%)

Ackermans

&

van

Haaren

NV

27

4,459

Ageas

SA/NV

189

8,185

Anheuser-Busch

InBev

SA/NV

1,375

91,619

Azelis

Group

NV

138

3,502

D'ieteren

Group

27

5,248

Groupe

Bruxelles

Lambert

NV

261

22,260

KBC

Group

NV

209

14,373

Proximus

SADP

243

2,348

Sofina

SA

19

4,261

Solvay

SA

96

10,988

UCB

SA

161

14,420

Umicore

SA

274

9,291

190,954

Brazil

(0.1%)

Yara

International

ASA

495

21,453

Shares

Value

Canada

(9.0%)

Agnico

Eagle

Mines

Ltd.

1,283

$

65,318

Air

Canada(a)

476

6,735

Algonquin

Power

&

Utilities

Corp.

1,358

11,379

Alimentation

Couche-Tard,

Inc.

1,753

88,016

AltaGas

Ltd.

393

6,542

Bank

of

Montreal

1,101

97,934

Bank

of

Nova

Scotia

(The)

1,983

99,740

BCE,

Inc.

578

25,856

Brookfield

Asset

Management

Ltd.,

Class

A

598

19,561

Brookfield

Corp.

1,436

46,719

CAE,

Inc.(a)

616

13,910

Cameco

Corp.

1,515

39,617

Canadian

Imperial

Bank

of

Commerce

1,553

65,765

Canadian

National

Railway

Co.

1,102

129,853

Canadian

Pacific

Railway

Ltd.

1,607

123,575

Canadian

Tire

Corp.

Ltd.,

Class

A

95

12,380

CCL

Industries,

Inc.,

Class

B

283

14,040

CGI,

Inc.(a)

502

48,314

Constellation

Software,

Inc.

41

76,977

Dollarama

,

Inc.

485

28,946

Empire

Co.

Ltd.,

Class

A

376

10,066

Fortis,

Inc.

258

10,952

George

Weston

Ltd.

130

17,204

GFL

Environmental,

Inc.

384

13,222

Gildan

Activewear

,

Inc.

309

10,252

Great-West

Lifeco

,

Inc.

465

12,307

Hydro

One

Ltd.(b)

1,067

30,338

IGM

Financial,

Inc.

135

4,029

Intact

Financial

Corp.

291

41,590

Loblaw

Cos.

Ltd.

360

32,764

Lumine

Group,

Inc.(a)

99

1,076

Magna

International,

Inc.

107

5,723

Manulife

Financial

Corp.

3,848

70,514

Metro,

Inc.

604

33,178

National

Bank

of

Canada

405

28,929

Northland

Power,

Inc.

470

11,766

Nutrien

Ltd.

991

73,087

Open

Text

Corp.

734

28,273

Power

Corp.

of

Canada

1,331

33,970

Ritchie

Bros

Auctioneers,

Inc.

215

12,080

Rogers

Communications,

Inc.,

Class

B

384

17,773

Royal

Bank

of

Canada

2,130

203,423

Saputo,

Inc.

560

14,470

Shaw

Communications,

Inc.,

Class

B

1,048

31,316

Shopify,

Inc.,

Class

A(a)

1,832

87,718

Sun

Life

Financial,

Inc.

977

45,582

Teck

Resources

Ltd.,

Class

B

1,574

57,396

TELUS

Corp.

852

16,891

TFI

International,

Inc.

147

17,517

Thomson

Reuters

Corp.

342

44,436

TMX

Group

Ltd.

91

9,178

Toromont

Industries

Ltd.

156

12,787

Toronto-Dominion

Bank

(The)

2,422

144,871

WSP

Global,

Inc.

235

30,740

2,236,595

Chile

(0.2%)

Antofagasta

plc

933

18,238

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

(cont’d)

Calvert

International

Responsible

Index

ETF

5

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Shares

Value

Chile

(cont’d)

Lundin

Mining

Corp.

2,958

$

20,065

38,303

China

(0.7%)

BOC

Hong

Kong

Holdings

Ltd.

5,000

15,573

ESR

Group

Ltd.(b)

4,600

8,251

Fosun

International

Ltd.

4,000

2,935

NXP

Semiconductors

NV

310

57,807

Prosus

NV(a)

971

75,893

Xinyi

Glass

Holdings

Ltd.

9,000

16,120

176,579

Denmark

(2.4%)

AP

Moller

-

Maersk

A/S,

Class

B

10

18,151

Carlsberg

A/S,

Class

B

157

24,340

Chr.

Hansen

Holding

A/S

140

10,638

Coloplast

A/S,

Class

B

176

23,148

Danske

Bank

A/S(a)

949

19,100

Demant

A/S(a)

85

2,978

DSV

A/S

197

38,113

Genmab

A/S(a)

86

32,473

GN

Store

Nord

A/S(a)

184

4,130

H

Lundbeck

A/S,

Class

A

719

3,054

Novo

Nordisk

A/S,

Class

B

2,140

338,889

Novozymes

A/S,

Class

B

279

14,278

Orsted

A/S(b)

265

22,548

Pandora

A/S

108

10,323

Tryg

A/S

105

2,296

Vestas

Wind

Systems

A/S

1,529

44,377

608,836

Finland

(1.1%)

Elisa

OYJ

44

2,656

Fortum

OYJ(a)

615

9,431

Kesko

OYJ,

Class

B

544

11,705

Kone

OYJ,

Class

B

426

22,216

Metso

Outotec

OYJ

283

3,087

Neste

OYJ

1,496

73,839

Nokia

OYJ

9,203

45,149

Nordea

Bank

Abp

3,858

41,164

Orion

OYJ,

Class

B

54

2,417

Sampo

OYJ,

Class

A

397

18,754

Stora

Enso

OYJ,

Class

R

1,102

14,343

UPM-

Kymmene

OYJ(a)

811

27,270

Valmet

OYJ

77

2,496

Wartsila

OYJ

Abp

256

2,416

276,943

France

(8.3%)

Accor

SA(a)

285

9,280

Adevinta

ASA(a)

625

4,431

Air

France-KLM(a)

1,789

3,300

Air

Liquide

SA

800

134,024

ALD

SA(b)

202

2,370

Alstom

SA

475

12,943

Amundi

SA(b)

83

5,235

Arkema

SA

98

9,668

AXA

SA

2,903

88,831

BioMerieux

61

6,429

BNP

Paribas

SA

1,539

92,314

Shares

Value

Bouygues

SA

638

$

21,550

Bureau

Veritas

SA

488

14,034

Capgemini

SE

232

43,039

Carrefour

SA

1,087

22,002

Cie

de

Saint-Gobain

1,357

77,136

Cie

Generale

des

Etablissements

Michelin

SCA

1,014

31,006

Credit

Agricole

SA

1,541

17,409

Danone

SA

1,147

71,417

Dassault

Systemes

SE

966

39,750

Edenred

417

24,709

Eiffage

SA

124

13,437

Engie

SA

2,819

44,636

EssilorLuxottica

SA

447

80,617

Eurazeo

SE

58

4,127

Getlink

SE

640

10,562

Hermes

International

48

97,207

Ipsen

SA

51

5,624

Kering

SA

100

65,187

Legrand

SA

399

36,448

L'Oreal

SA

347

155,041

LVMH

Moet

Hennessy

Louis

Vuitton

SE

350

321,089

Orange

SA

2,679

31,877

Pernod

Ricard

SA

359

81,400

Publicis

Groupe

SA

382

29,790

Renault

SA(a)

291

11,888

Rexel

SA(a)

380

9,062

Safran

SA

532

78,919

Sartorius

Stedim

Biotech

35

10,723

SEB

SA

33

3,757

Societe

Generale

SA

711

16,056

Sodexo

SA

150

14,677

SOITEC(a)

36

5,773

Teleperformance

84

20,233

Thales

SA

153

22,665

Ubisoft

Entertainment

SA(a)

135

3,588

Valeo

319

6,554

Veolia

Environnement

SA

1,083

33,416

Vinci

SA

784

90,050

Vivendi

SE

1,223

12,357

Worldline

SA(a)(b)

341

14,489

2,062,126

Germany

(6.7%)

adidas

AG

240

42,445

Allianz

SE

582

134,556

Aroundtown

SA

2,748

3,920

Bayerische

Motoren

Werke

AG

645

70,735

Bechtle

AG

128

6,117

Beiersdorf

AG

125

16,290

BioNTech

SEADR

108

13,454

Brenntag

SE

250

18,796

Carl

Zeiss

Meditec

AG

60

8,344

Commerzbank

AG(a)

1,808

19,058

Continental

AG

178

13,328

Covestro

AG(b)

87

3,604

CTS

Eventim

AG

&

Co.

KGaA

(a)

108

6,741

Daimler

Truck

Holding

AG(a)

718

24,268

Deutsche

Boerse

AG

263

51,275

Deutsche

Lufthansa

AG(a)

1,007

11,225

Deutsche

Post

AG

1,623

75,981

Semi-Annual

Report

—

March

31,

2023

(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

Germany

(cont’d)

Deutsche

Telekom

AG

5,010

$

121,654

Deutsche

Wohnen

SE

102

2,005

DWS

Group

GmbH

&

Co.

KGaA

(b)

68

2,092

E.ON

SE

1,993

24,901

Evonik

Industries

AG

336

7,067

Fraport

AG

Frankfurt

Airport

Services

Worldwide(a)

66

3,321

Fresenius

Medical

Care

AG

&

Co.

KGaA

337

14,316

Fresenius

SE

&

Co.

KGaA

422

11,393

GEA

Group

AG

279

12,716

Hannover

Rueck

SE

87

17,047

HeidelbergCement

AG

514

37,560

Hella

GmbH

&

Co.

KGaA

29

2,525

HelloFresh

SE(a)

436

10,379

Henkel

AG

&

Co.

KGaA

148

10,773

Infineon

Technologies

AG

2,017

82,571

Knorr-

Bremse

AG

110

7,323

LEG

Immobilien

SE

38

2,084

Mercedes-Benz

Group

AG

1,409

108,351

Merck

KGaA

140

26,093

MTU

Aero

Engines

AG

89

22,298

Muenchener

Rueckversicherungs-Gesellschaft

AG

202

70,777

Nemetschek

SE

156

10,725

Puma

SE

43

2,656

SAP

SE

1,594

200,993

Scout24

SE(b)

43

2,555

Siemens

AG

1,207

195,731

Siemens

Energy

AG(a)

709

15,591

Siemens

Healthineers

AG(b)

443

25,518

Symrise

AG

221

24,059

Talanx

AG

77

3,572

Telefonica

Deutschland

Holding

AG

1,432

4,414

thyssenkrupp

AG

1,894

13,614

United

Internet

AG

106

1,828

Volkswagen

AG

67

11,501

Vonovia

SE

656

12,358

Wacker

Chemie

AG

25

4,058

Zalando

SE(a)(b)

220

9,212

1,655,768

Hong

Kong

(2.0%)

AIA

Group

Ltd.

16,600

174,777

Hang

Lung

Properties

Ltd.

4,000

7,480

Hang

Seng

Bank

Ltd.

2,800

39,842

Henderson

Land

Development

Co.

Ltd.

5,000

17,293

HKT

Trust

&

HKT

Ltd.

6,000

7,964

Hong

Kong

Exchanges

&

Clearing

Ltd.

2,000

88,714

Hongkong

Land

Holdings

Ltd.

2,200

9,658

MTR

Corp.

Ltd.

3,000

14,465

New

World

Development

Co.

Ltd.

1,000

2,682

Prudential

plc

3,118

42,485

Sino

Land

Co.

Ltd.

4,000

5,411

Sun

Hung

Kai

Properties

Ltd.

2,500

35,032

Swire

Properties

Ltd.

1,200

3,088

Techtronic

Industries

Co.

Ltd.

1,500

16,213

WH

Group

Ltd.(b)

19,500

11,626

Shares

Value

Wharf

Real

Estate

Investment

Co.

Ltd.

2,000

$

11,491

488,221

Ireland

(0.8%)

AerCap

Holdings

NV(a)

68

3,824

AIB

Group

plc

934

3,797

Bank

of

Ireland

Group

plc

1,212

12,278

CRH

plc

2,078

104,924

Kerry

Group

plc,

Class

A

356

35,521

Kingspan

Group

plc

587

40,203

Smurfit

Kappa

Group

plc

131

4,744

205,291

Israel

(0.4%)

Bank

Hapoalim

BM

1,750

14,459

Bank

Leumi

Le-Israel

BM

2,251

16,879

Check

Point

Software

Technologies

Ltd.(a)

256

33,280

Mizrahi

Tefahot

Bank

Ltd.

196

6,108

Nice

Ltd.ADR

(a)

184

42,116

112,842

Italy

(1.8%)

A2A

SpA

3,055

4,879

Amplifon

SpA

227

7,877

Assicurazioni

Generali

SpA

2,016

40,257

Banca

Mediolanum

SpA

360

3,269

Banco

BPM

SpA

929

3,638

Coca-Cola

HBC

AG(a)

341

9,331

DiaSorin

SpA

48

5,062

Enel

SpA

15,386

94,062

ERG

SpA

112

3,402

Hera

SpA

1,586

4,483

Infrastrutture

Wireless

Italiane

SpA

(b)

559

7,361

Interpump

Group

SpA

131

7,351

Intesa

Sanpaolo

SpA

25,838

66,460

Italgas

SpA

913

5,580

Mediobanca

Banca

di

Credito

Finanziario

SpA

230

2,316

Moncler

SpA

330

22,781

Nexi

SpA

(a)(b)

838

6,816

Pirelli

&

C

SpA

(b)

761

3,821

Poste

Italiane

SpA

(b)

772

7,894

PRADA

SpA

1,000

7,089

Prysmian

SpA

497

20,897

Recordati

Industria

Chimica

e

Farmaceutica

SpA

182

7,704

Reply

SpA

40

5,019

Snam

SpA

4,098

21,767

Telecom

Italia

SpA

(a)

18,235

6,027

Terna

-

Rete

Elettrica

Nazionale

2,811

23,107

UniCredit

SpA

3,050

57,691

UnipolSai

Assicurazioni

SpA

1,004

2,539

458,480

Japan

(16.3%)

Advantest

Corp.

200

18,273

Aeon

Co.

Ltd.

1,100

21,208

AGC,

Inc.

800

29,604

Aisin

Corp.

300

8,216

Ajinomoto

Co.,

Inc.

1,000

34,608

ANA

Holdings,

Inc.(a)

500

10,805

Asahi

Group

Holdings

Ltd.

1,000

36,997

Semi-Annual

Report

—

March

31,

2023

(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

Japan

(cont’d)

Astellas

Pharma,

Inc.

2,900

$

41,030

Bandai

Namco

Holdings,

Inc.

600

12,842

Bridgestone

Corp.

900

36,293

Canon,

Inc.

2,000

44,414

Capcom

Co.

Ltd.

400

14,231

Central

Japan

Railway

Co.

300

35,638

Chugai

Pharmaceutical

Co.

Ltd.

1,200

29,484

Dai

Nippon

Printing

Co.

Ltd.

600

16,703

Daifuku

Co.

Ltd.

300

5,507

Dai-ichi

Life

Holdings,

Inc.

600

10,978

Daiichi

Sankyo

Co.

Ltd.

2,700

97,824

Daikin

Industries

Ltd.

500

88,868

Daito

Trust

Construction

Co.

Ltd.

100

9,911

Daiwa

House

Industry

Co.

Ltd.

1,300

30,417

Daiwa

Securities

Group,

Inc.

4,800

22,397

Denso

Corp.

800

44,740

Dentsu

Group,

Inc.

400

13,975

Disco

Corp.

300

34,488

East

Japan

Railway

Co.

500

27,557

Eisai

Co.

Ltd.

500

28,191

FANUC

Corp.

1,500

53,648

Fast

Retailing

Co.

Ltd.

300

65,099

Fuji

Electric

Co.

Ltd.

300

11,721

FUJIFILM

Holdings

Corp.

800

40,261

Fujitsu

Ltd.

300

40,202

Hankyu

Hanshin

Holdings,

Inc.

400

11,797

Hoya

Corp.

600

65,640

Hulic

Co.

Ltd.

1,300

10,618

Isuzu

Motors

Ltd.

1,200

14,237

Japan

Airlines

Co.

Ltd.

200

3,880

Japan

Exchange

Group,

Inc.

200

3,033

Japan

Post

Bank

Co.

Ltd.

400

3,255

JSR

Corp.

400

9,362

Kao

Corp.

600

23,294

KDDI

Corp.

2,400

73,809

Keyence

Corp.

300

145,278

Kikkoman

Corp.

400

20,257

Komatsu

Ltd.

1,400

34,471

Kubota

Corp.

1,600

24,032

Kyocera

Corp.

600

31,053

Kyowa

Kirin

Co.

Ltd.

500

10,842

Lixil

Corp.

500

8,179

M3,

Inc.

700

17,362

Makita

Corp.

300

7,393

MEIJI

Holdings

Co.

Ltd.

200

4,741

MinebeaMitsumi

,

Inc.

600

11,320

MISUMI

Group,

Inc.

400

9,918

Mitsubishi

Chemical

Group

Corp.

3,800

22,433

Mitsubishi

Electric

Corp.

3,700

43,883

Mitsubishi

Estate

Co.

Ltd.

2,400

28,429

Mitsubishi

HC

Capital,

Inc.

3,700

19,016

Mitsubishi

Heavy

Industries

Ltd.

400

14,655

Mitsubishi

UFJ

Financial

Group,

Inc.

22,400

142,708

Mitsui

Fudosan

Co.

Ltd.

1,500

27,996

Mizuho

Financial

Group,

Inc.

3,700

52,210

MS&AD

Insurance

Group

Holdings,

Inc.

700

21,596

Murata

Manufacturing

Co.

Ltd.

900

54,369

Nidec

Corp.

800

41,145

Shares

Value

Nintendo

Co.

Ltd.

1,400

$

53,974

Nippon

Paint

Holdings

Co.

Ltd.

1,500

13,953

Nippon

Telegraph

&

Telephone

Corp.

1,900

56,562

Nissan

Chemical

Corp.

100

4,501

Nitori

Holdings

Co.

Ltd.

100

11,969

Nitto

Denko

Corp.

100

6,424

Nomura

Holdings,

Inc.

7,600

29,106

Nomura

Research

Institute

Ltd.

500

11,515

Olympus

Corp.

1,900

33,099

Omron

Corp.

100

5,791

Ono

Pharmaceutical

Co.

Ltd.

600

12,461

Oracle

Corp.

Japan

100

7,161

Oriental

Land

Co.

Ltd.

1,500

51,033

ORIX

Corp.

1,700

27,801

Osaka

Gas

Co.

Ltd.

600

9,832

Otsuka

Corp.

300

10,561

Otsuka

Holdings

Co.

Ltd.

700

22,106

Pan

Pacific

International

Holdings

Corp.

700

13,459

Panasonic

Holdings

Corp.

3,500

31,084

Rakuten

Group,

Inc.

1,900

8,765

Recruit

Holdings

Co.

Ltd.

2,100

57,593

Renesas

Electronics

Corp.(a)

1,900

27,317

Resona

Holdings,

Inc.

8,000

38,440

Secom

Co.

Ltd.

200

12,268

Sekisui

Chemical

Co.

Ltd.

600

8,457

Sekisui

House

Ltd.

1,200

24,326

Seven

&

i

Holdings

Co.

Ltd.

800

35,916

SG

Holdings

Co.

Ltd.

500

7,363

Shin-Etsu

Chemical

Co.

Ltd.

3,500

112,424

Shionogi

&

Co.

Ltd.

400

17,964

Shiseido

Co.

Ltd.

500

23,221

SMC

Corp.

100

52,468

SoftBank

Corp.

4,400

50,549

SoftBank

Group

Corp.

1,500

58,404

Sompo

Holdings,

Inc.

400

15,785

Sony

Group

Corp.

1,900

171,098

Square

Enix

Holdings

Co.

Ltd.

300

14,336

Subaru

Corp.

1,100

17,477

Sumitomo

Chemical

Co.

Ltd.

3,000

10,031

Sumitomo

Electric

Industries

Ltd.

1,200

15,301

Sumitomo

Mitsui

Financial

Group,

Inc.

2,300

91,558

Sumitomo

Mitsui

Trust

Holdings,

Inc.

300

10,236

Suntory

Beverage

&

Food

Ltd.

300

11,124

Sysmex

Corp.

200

12,988

Takeda

Pharmaceutical

Co.

Ltd.

2,800

91,517

TDK

Corp.

300

10,651

Terumo

Corp.

900

24,169

Toho

Co.

Ltd.

200

7,619

Tokio

Marine

Holdings,

Inc.

2,600

49,757

Tokyo

Electron

Ltd.

600

72,312

Tokyo

Gas

Co.

Ltd.

700

13,128

Tokyu

Corp.

1,200

15,887

TOPPAN,

Inc.

700

14,017

Toray

Industries,

Inc.

2,600

14,777

Toyota

Industries

Corp.

200

11,045

Toyota

Motor

Corp.

18,500

261,327

Trend

Micro,

Inc.

300

14,584

Unicharm

Corp.

400

16,353

USS

Co.

Ltd.

500

8,622

Semi-Annual

Report

—

March

31,

2023

(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)

West

Japan

Railway

Co.

300

$

12,301

Yakult

Honsha

Co.

Ltd.

200

14,471

Yamaha

Corp.

200

7,649

Yamaha

Motor

Co.

Ltd.

400

10,399

Yamato

Holdings

Co.

Ltd.

600

10,229

Yaskawa

Electric

Corp.

400

17,342

Z

Holdings

Corp.

5,100

14,286

4,058,584

Luxembourg

(0.1%)

Eurofins

Scientific

SE

217

14,532

RTL

Group

SA

264

13,033

27,565

Netherlands

(3.6%)

Aalberts

NV

155

7,310

ABN

AMRO

Bank

NVCVA(b)

575

9,133

Adyen

NV(a)(b)

43

68,170

Aegon

NV

1,500

6,439

Akzo

Nobel

NV

291

22,757

Argenx

SE(a)

85

31,463

ASM

International

NV

70

28,284

ASML

Holding

NV

546

370,870

BE

Semiconductor

Industries

NV

117

10,182

Euronext

NV(b)

120

9,202

IMCD

NV

89

14,543

ING

Groep

NV

4,004

47,547

JDE

Peet's

NV

509

14,831

Koninklijke

Ahold

Delhaize

NV

1,916

65,551

Koninklijke

DSM

NV

279

32,949

Koninklijke

KPN

NV

4,922

17,411

Koninklijke

Philips

NV

1,342

24,547

NN

Group

NV

81

2,945

Randstad

NV

195

11,567

Universal

Music

Group

NV

1,332

33,726

Wolters

Kluwer

NV

443

55,999

885,426

New

Zealand

(0.2%)

Auckland

International

Airport

Ltd.(a)

2,648

14,413

Fisher

&

Paykel

Healthcare

Corp.

Ltd.

712

11,872

Meridian

Energy

Ltd.

1,672

5,492

Spark

New

Zealand

Ltd.

2,295

7,266

Xero

Ltd.(a)

159

9,522

48,565

Norway

(0.6%)

DNB

Bank

ASA

1,341

23,989

Gjensidige

Forsikring

ASA

400

6,542

Mowi

ASA

1,219

22,511

Norsk

Hydro

ASA

6,057

44,995

Orkla

ASA

2,256

15,996

Telenor

ASA

1,502

17,597

TOMRA

Systems

ASA

585

9,831

141,461

Philippines

(0.0%)

TELUS

International

CDA,

Inc.(a)

115

2,321

Portugal

(0.2%)

EDP

-

Energias

de

Portugal

SA

5,565

30,327

Shares

Value

Jeronimo

Martins

SGPS

SA

595

$

13,976

44,303

Singapore

(1.2%)

DBS

Group

Holdings

Ltd.

3,300

81,907

Oversea-Chinese

Banking

Corp.

Ltd.

5,300

49,311

Singapore

Airlines

Ltd.

4,400

18,963

Singapore

Exchange

Ltd.

1,400

9,898

Singapore

Technologies

Engineering

Ltd.

3,100

8,534

Singapore

Telecommunications

Ltd.

15,900

29,419

STMicroelectronics

NV

935

49,725

United

Overseas

Bank

Ltd.

2,000

44,767

292,524

South

Africa

(0.3%)

Anglo

American

plc

2,635

87,251

South

Korea

(3.5%)

Delivery

Hero

SE(a)(b)

369

12,576

Doosan

Enerbility

Co.

Ltd.(a)

1,752

22,878

Hana

Financial

Group,

Inc.

1,124

35,140

HMM

Co.

Ltd.

410

6,409

HYBE

Co.

Ltd.(a)

66

9,577

Hyundai

Mobis

Co.

Ltd.

187

31,027

Hyundai

Motor

Co.

143

20,266

Kakao

Corp.

990

46,464

KB

Financial

Group,

Inc.

552

20,204

Kia

Corp.

442

27,501

Krafton

,

Inc.(a)

53

7,470

L&F

Co.

Ltd.

35

8,428

LG

Chem

Ltd.

84

45,941

LG

Electronics,

Inc.

187

16,562

LG

H&H

Co.

Ltd.

14

6,452

NAVER

Corp.

194

30,102

POSCO

Holdings,

Inc.

216

61,058

Samsung

Electronics

Co.

Ltd.

7,165

352,237

Shinhan

Financial

Group

Co.

Ltd.

765

20,773

SK

Hynix,

Inc.

720

49,001

SK

IE

Technology

Co.

Ltd.(a)(b)

512

28,002

SK

Telecom

Co.

Ltd.

252

9,349

867,417

Spain

(2.3%)

Acciona

SA

36

7,224

Aena

SME

SA(a)(b)

120

19,413

Amadeus

IT

Group

SA(a)

626

41,936

Banco

Bilbao

Vizcaya

Argentaria

SA

7,213

51,494

Banco

de

Sabadell

SA

3,610

3,878

Banco

Santander

SA

21,699

80,768

Bankinter

SA

1,675

9,510

CaixaBank

SA

5,648

21,992

Cellnex

Telecom

SA(b)

776

30,149

EDP

Renovaveis

SA

372

8,524

Enagas

SA

1,414

27,191

Ferrovial

SA

746

21,956

Iberdrola

SA

9,904

123,581

Industria

de

Diseno

Textil

SA

1,484

49,820

Mapfre

SA

5,892

11,894

Naturgy

Energy

Group

SA

287

8,653

Red

Electrica

Corp.

SA

628

11,053

Semi-Annual

Report

—

March

31,

2023

(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

Spain

(cont’d)

Telefonica

SA

9,660

$

41,697

570,733

Sweden

(2.9%)

Alfa

Laval

AB

445

15,865

Alleima

AB(a)

470

2,321

Assa

Abloy

AB,

Class

B

1,514

36,253

Atlas

Copco

AB,

Class

A

6,078

77,101

Axfood

AB

204

4,981

Boliden

AB

751

29,534

Castellum

AB

549

6,374

Epiroc

AB,

Class

A

1,464

29,055

EQT

AB

839

17,040

Essity

AB,

Class

B

876

25,039

Fastighets

AB

Balder,

Class

B(a)

1,012

4,149

Getinge

AB,

Class

B

329

8,017

H

&

M

Hennes

&

Mauritz

AB,

Class

B

918

13,086

Hexagon

AB,

Class

B

3,380

38,740

Holmen

AB,

Class

B

165

6,352

Husqvarna

AB,

Class

B

675

5,848

Industrivarden

AB,

Class

A

392

10,573

Indutrade

AB

416

8,830

Investment

AB

Latour

,

Class

B

145

2,945

Investor

AB,

Class

B

3,045

60,506

Kinnevik

AB,

Class

B(a)

828

12,337

L

E

Lundbergforetagen

AB,

Class

B

120

5,424

Lifco

AB,

Class

B

340

7,312

Nibe

Industrier

AB,

Class

B

2,559

29,071

Saab

AB,

Class

B

137

8,337

Sagax

AB,

Class

B

302

6,955

Sandvik

AB

1,634

34,635

Skandinaviska

Enskilda

Banken

AB,

Class

A(a)

2,171

23,941

Skanska

AB,

Class

B

517

7,905

SKF

AB,

Class

B

604

11,882

SSAB

AB,

Class

A

4,082

30,091

Svenska

Cellulosa

AB

SCA,

Class

B

1,121

14,751

Svenska

Handelsbanken

AB,

Class

A

1,976

17,120

Swedbank

AB,

Class

A

934

15,326

Swedish

Orphan

Biovitrum

AB(a)

284

6,614

Tele2

AB,

Class

B

771

7,677

Telia

Co.

AB

3,363

8,552

Trelleborg

AB,

Class

B

357

10,153

Volvo

AB,

Class

B

2,639

54,424

Volvo

Car

AB,

Class

B(a)

756

3,295

718,411

Switzerland

(4.7%)

ABB

Ltd.

2,323

79,768

Accelleron

Industries

AG(a)

117

2,770

Adecco

Group

AG

250

9,072

Alcon,

Inc.

687

48,655

Bachem

Holding

AG

44

4,402

Baloise

Holding

AG

123

19,173

Barry

Callebaut

AG

6

12,735

Belimo

Holding

AG

14

6,758

BKW

AG

30

4,722

Chocoladefabriken

Lindt

&

Spruengli

AG

2

23,644

Cie

Financiere

Richemont

SA

638

101,893

Clariant

AG(a)

316

5,227

Shares

Value

DKSH

Holding

AG

57

$

4,595

Emmi

AG

2

2,010

Flughafen

Zurich

AG(a)

28

5,134

Geberit

AG

43

23,968

Givaudan

SA

12

39,052

Helvetia

Holding

AG

43

5,997

Julius

Baer

Group

Ltd.

253

17,259

Kuehne

+

Nagel

International

AG

69

20,536

Logitech

International

SA

205

11,916

Lonza

Group

AG

101

60,519

Novartis

AG

2,655

243,427

Partners

Group

Holding

AG

26

24,385

PSP

Swiss

Property

AG

69

7,855

Schindler

Holding

AG

88

18,591

SGS

SA

10

22,013

SIG

Group

AG(a)

430

11,071

Sika

AG

208

58,173

Sonova

Holding

AG

67

19,699

Straumann

Holding

AG

147

21,940

Swatch

Group

AG

(The)

37

12,693

Swiss

Life

Holding

AG

35

21,577

Swiss

Prime

Site

AG

121

10,073

Swisscom

AG

34

21,705

Temenos

AG

86

5,957

UBS

Group

AG

3,430

72,426

VAT

Group

AG(b)

38

13,652

Zurich

Insurance

Group

AG

180

86,242

1,181,284

Taiwan

(4.3%)

Advantech

Co.

Ltd.

1,000

12,185

ASE

Technology

Holding

Co.

Ltd.

6,000

22,169

AUO

Corp.

24,000

14,504

Cathay

Financial

Holding

Co.

Ltd.

21,000

28,830

Chailease

Holding

Co.

Ltd.

1,000

7,340

Chunghwa

Telecom

Co.

Ltd.

6,000

23,549

CTBC

Financial

Holding

Co.

Ltd.

15,000

10,764

Delta

Electronics,

Inc.

4,000

39,543

Eva

Airways

Corp.

8,000

7,055

Evergreen

Marine

Corp.

Taiwan

Ltd.

3,000

15,617

Far

EasTone

Telecommunications

Co.

Ltd.

3,000

7,409

Feng

TAY

Enterprise

Co.

Ltd.

1,000

6,339

Fubon

Financial

Holding

Co.

Ltd.

16,000

29,690

Hotai

Motor

Co.

Ltd.

1,000

21,085

MediaTek

,

Inc.

2,000

51,696

Mega

Financial

Holding

Co.

Ltd.

15,000

16,257

Nanya

Technology

Corp.

2,000

4,368

Novatek

Microelectronics

Corp.

2,000

28,344

Powerchip

Semiconductor

Manufacturing

Corp.

6,000

6,523

Quanta

Computer,

Inc.

8,000

23,411

Realtek

Semiconductor

Corp.

1,000

12,727

Taishin

Financial

Holding

Co.

Ltd.

8,000

4,362

Taiwan

Cement

Corp.

23,000

27,497

Taiwan

Mobile

Co.

Ltd.

3,000

9,952

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

31,000

542,672

Unimicron

Technology

Corp.

3,000

14,533

Uni

-President

Enterprises

Corp.

9,000

21,253

United

Microelectronics

Corp.(a)

22,000

38,223

Wan

Hai

Lines

Ltd.

2,000

4,500

Semi-Annual

Report

—

March

31,

2023

(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

Taiwan

(cont’d)

Yang

Ming

Marine

Transport

Corp.

3,000

$

6,335

Yuanta

Financial

Holding

Co.

Ltd.

18,000

13,213

1,071,945

United

Kingdom

(10.0%)

3i

Group

plc

1,605

33,439

abrdn

plc

3,388

8,525

Admiral

Group

plc

580

14,615

Allfunds

Group

plc

1,254

8,283

Ashtead

Group

plc

840

51,495

Associated

British

Foods

plc

1,135

27,225

AstraZeneca

plc

2,141

297,338

Auto

Trader

Group

plc(b)

1,656

12,617

Aviva

plc

4,375

21,865

B&M

European

Value

Retail

SA

1,625

9,686

BAE

Systems

plc

5,966

72,483

Barratt

Developments

plc

2,007

11,576

Berkeley

Group

Holdings

plc

208

10,794

BT

Group

plc

12,377

22,313

Bunzl

plc

582

21,999

Burberry

Group

plc

658

21,039

Centrica

plc

5,045

6,615

Coca-Cola

Europacific

Partners

plc

476

28,174

Compass

Group

plc

3,735

93,887

ConvaTec

Group

plc(b)

3,098

8,757

Croda

International

plc

268

21,532

DCC

plc

377

21,993

Dechra

Pharmaceuticals

plc

211

6,914

Diageo

plc

3,577

159,839

DS

Smith

plc

635

2,469

easyJet

plc(a)

580

3,718

Halma

plc

721

19,871

Hargreaves

Lansdown

plc

590

5,832

Howden

Joinery

Group

plc

941

8,121

HSBC

Holdings

plc

27,781

188,821

Informa

plc

3,030

25,948

InterContinental

Hotels

Group

plc

398

26,141

Intermediate

Capital

Group

plc

475

7,148

Intertek

Group

plc

340

17,038

J

Sainsbury

plc

3,506

12,082

JD

Sports

Fashion

plc

4,300

9,450

Kingfisher

plc

5,828

18,822

Legal

&

General

Group

plc

9,950

29,391

Liberty

Global

plc,

Class

A(a)

742

14,469

Lloyds

Banking

Group

plc

104,486

61,592

London

Stock

Exchange

Group

plc

578

56,230

M&G

plc

4,377

10,716

Melrose

Industries

plc

7,715

15,883

National

Grid

plc

7,317

99,201

Next

plc

226

18,365

Pearson

plc

906

9,459

Persimmon

plc

158

2,454

Phoenix

Group

Holdings

plc

1,438

9,715

Reckitt

Benckiser

Group

plc

1,212

92,282

RELX

plc

3,660

118,475

Rentokil

Initial

plc

5,307

38,820

Rightmove

plc

523

3,641

RS

GROUP

plc

850

9,606

Sage

Group

plc

(The)

1,835

17,584

Shares

Value

Schroders

plc

1,275

$

7,252

Severn

Trent

plc

472

16,802

Smith

&

Nephew

plc

1,622

22,502

Smiths

Group

plc

691

14,666

Spirax-Sarco

Engineering

plc

141

20,668

SSE

plc

2,122

47,306

St.

James's

Place

plc

613

9,179

Standard

Chartered

plc

4,038

30,666

Taylor

Wimpey

plc

7,031

10,341

Tesco

plc

17,007

55,872

Unilever

plc

3,572

185,055

United

Utilities

Group

plc

1,352

17,720

Vodafone

Group

plc

55,932

61,757

Weir

Group

plc

(The)

501

11,516

Whitbread

plc

403

14,884

WPP

plc

2,276

26,976

2,499,509

United

States

(9.7%)

Amcor

plc

3,229

36,746

Aon

plc,

Class

A

332

104,676

Atlassian

Corp.,

Class

A(a)

276

47,243

BRP,

Inc.

66

5,158

Chubb

Ltd.

396

76,895

Clarivate

plc(a)

756

7,099

Computershare

Ltd.

219

3,167

CSL

Ltd.

783

151,189

Ferguson

plc

361

48,284

Flex

Ltd.(a)

624

14,358

Garmin

Ltd.

200

20,184

GSK

plc

7,032

124,248

Haleon

plc

9,651

38,424

Holcim

AG(a)

1,007

64,925

ICON

plc(a)

107

22,854

James

Hardie

Industries

plcCDI

1,709

36,433

Linde

plc

742

263,736

Nestle

SA

3,775

460,579

QIAGEN

NV(a)

352

16,167

Roche

Holding

AG

921

263,078

Sanofi

1,778

193,634

Schneider

Electric

SE

814

135,910

Signify

NV(b)

77

2,563

Spotify

Technology

SA(a)

190

25,388

Stellantis

NV

3,995

72,640

Swiss

Re

AG

351

36,055

TE

Connectivity

Ltd.

539

70,690

Waste

Connections,

Inc.

512

71,162

2,413,485

Total

Common

Stocks

(Cost

$24,489,888)

24,714,781

Semi-Annual

Report

—

March

31,

2023

(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

Short-Term

Investment

(0.2%)

Investment

Company

(0.2%

)

Morgan

Stanley

Institutional

Liquidity

Funds

-

Government

Portfolio

-

Institutional

Class

(See

Note

G)

(Cost

$48,422)

48,422

48,422

Total

Investments

(

99.5%

)

(Cost

$24,538,310

)

(c)

24,763,203

Other

Assets

in

Excess

of

Liabilities

(0.5%)

115,635

NET

ASSETS

(100.0%)

$24,878,838

The

country

classifications

used

for

financial

reporting

purposes

may

differ

from

the

classifications

determined

by

CRM.

(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)

At

March

31,

2023,

the

aggregate

cost

for

federal

income

tax

purposes

is

$24,538,310.

The

aggregate

gross

unrealized

appreciation

is

$780,052

and

the

aggregate

gross

unrealized

depreciation

is

$555,159,

resulting

in

net

unrealized

appreciation

of

$224,893.

ADR

American

Depositary

Receipt

CDI

CREST

Depository

Interest

CVA

Dutch

Certification

Portfolio

Composition

Classification  

Percentage

of

Total

Investments

Other*

69.2

%

Banks

11.1

Pharmaceuticals

7.6

Semiconductors

&

Semiconductor

Equipment

6.1

Insurance

6.0

Total

Investments

100.0

%

*

Industries

and/or

investment

types

representing

less

than

5%

of

total

investments.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

International

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,

2023

Assets:

Investments

in

Securities

of

Unaffiliated

Issuers,

at

Value

(Cost

$24,489,888)

$

24,714,781

Investment

in

Security

of

Affiliated

Issuer,

at

Value

(Cost

$48,422)

48,422

Total

Investments

in

Securities,

at

Value

(Cost

$24,538,310)

24,763,203

Foreign

Currency,

at

Value

(Cost

$37,045)

37,178

Dividends

Receivable

82,514

Total

Assets

24,882,895

Liabilities:

Payable

for

Management

Fee

3,157

Payable

to

Bank

900

Total

Liabilities

4,057

Net

Assets

$

24,878,838

Net

Assets

Consist

of:

Paid-in-Capital

$

24,825,647

Total

Distributable

Earnings

53,191

Net

Assets

$

24,878,838

Shares

Outstanding

$0.001

Par

Value

(unlimited

shares

authorized)

500,000

Net

Asset

Value

Per

Share

$

49.76

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

International

Responsible

Index

ETF

13

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Statement

of

Operations

Period

from

January

30,

2023

^

to

March

31,

2023

Investment

Income:

Dividends

from

Securities

of

Unaffiliated

Issuers

(Net

of

$13,651

of

Foreign

Taxes

Withheld)

$

129,484

Dividends

from

Security

of

Affiliated

Issuer

(Note

G)

635

Total

Investment

Income

130,119

Expenses:

Management

Fee

(Note

B)

6,004

Total

Expenses

6,004

Rebate

from

Morgan

Stanley

Affiliate

(Note

G)

(17)

Net

Expenses

5,987

Net

Investment

Income

124,132

Realized

Gain

(Loss):

Investments

Sold

(255,597)

Net

Realized

Loss

(255,597)

Change

in

Unrealized

Appreciation

(Depreciation):

Investments

224,893

Foreign

Currency

Translation

286

Net

Change

in

Unrealized

Appreciation

(Depreciation)

225,179

Net

Realized

Loss

and

Change

in

Unrealized

Appreciation

(Depreciation)

(30,418)

Net

Increase

in

Net

Assets

Resulting

from

Operations

$

93,714

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

International

Responsible

Index

ETF

14

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Statement

of

Changes

in

Net

Assets

Period

from

January

30,

2023

^

to

March

31,

2023

Increase

(Decrease)

in

Net

Assets:

Operations:

Net

Investment

Income

$

124,132

Net

Realized

Loss

(255,597)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

225,179

Net

Increase

in

Net

Assets

Resulting

from

Operations

93,714

Dividends

and

Distributions

to

Shareholders:

Dividends

and

Distributions

(40,523)

Total

Dividends

and

Distributions

to

Shareholders

(40,523)

Capital

Share

Transactions:

Subscribed

20,000,000

Subscribed

In-Kind

4,825,647

Net

Increase

in

Net

Assets

Resulting

from

Capital

Share

Transactions

24,825,647

Total

Increase

in

Net

Assets

24,878,838

Net

Assets:

Beginning

of

Period

–

End

of

Period

$

24,878,838

Capital

Share

Transactions:

Beginning

of

Period

–

Shares

Subscribed

400,000

Shares

Subscribed

In-Kind

100,000

Shares

Outstanding,

End

of

Period

Net

Increase

in

500,000

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Financial

Highlights

Calvert

International

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

Period

from

January

30,

2023

(1)

to

March

31,

2023

Net

Asset

Value,

Beginning

of

Period

$50.00‌

Income

(Loss)

from

Investment

Operations:

—

Net

Investment

Income

(2)

0.30‌

Net

Realized

and

Unrealized

Loss

(0.44‌)

Total

from

Investment

Operations

(0.14‌)

Distributions

from

and/or

in

Excess

of:

—

Net

Investment

Income

(0.10‌)

Net

Asset

Value,

End

of

Period

$49.76‌

Total

Return

(3)

(0.27‌)%

(4)

Ratios

to

Average

Net

Assets

and

Supplemental

Data:

$24,879

Net

Assets,

End

of

Period

(Thousa

nds)

$24,879‌

Ratio

of

Expenses

0.18‌%

(5)(6)

Ratio

of

Net

Investment

Income

3.67‌%

(5)(6)

Ratio

of

Rebate

from

Morgan

Stanley

Affiliates

0.00‌%

(5)(7)

Portfolio

Turnover

Rate

7‌%

(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,

2023

(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

reporting

guidance

Accounting

Standard

Codification

("ASC")

Topic

946.

The

accompanying

financial

statements

relate

to

the

Calvert

International

Responsible

Index

ETF

 (the

"Fund"),

which

seeks

to

track

the

performance

of

the

Calvert

International

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

rele-

vant

exchanges.

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

security

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

market

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

relevant

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

repu-

table

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

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

or

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

brokers/dealers;

(4)

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;

(5)

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

Standards

Board

(“FASB”)

ASC

820,

“Fair

Value

Mea-

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

17

Morgan

Stanley

ETF

Trust

surement”

(“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

par-

ticipants

at

the

measurement

date. ASC

820

establishes

a

three tier

hierarchy

to

distinguish

between

(1)

inputs

that

reflect

the

assumptions

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

participants

would

use

in

valuing

an

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances

(unobservable

inputs)

and

to

establish

classification

of

fair

value

measurements

for

disclosure

purposes.

Various

inputs

are

used

in

determin-

ing

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,

2023:

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

Aerospace

&

Defense

$

227

$

—

$

—

$

227

Air

Freight

&

Logistics

132

—

—

132

Automobile

Components

199

—

—

199

Automobiles

630

—

—

630

Banks

2,743

—

—

2,743

Beverages

443

—

—

443

Biotechnology

235

—

—

235

Broadline

Retail

236

—

—

236

Building

Products

356

—

—

356

Capital

Markets

661

—

—

661

Chemicals

1,033

—

—

1,033

Commercial

Services

&

Supplies

213

—

—

213

Communications

Equipment

45

—

—

45

Construction

&

Engineering

190

—

—

190

Construction

Materials

271

—

—

271

Consumer

Staples

Distribution

&

Retail

562

—

—

562

Containers

&

Packaging

69

—

—

69

Distributors

5

—

—

5

Diversified

Consumer

Services

9

—

—

9

Diversified

Telecommunication

Services

537

—

—

537

Electric

Utilities

426

—

—

426

Electrical

Equipment

458

—

—

458

Electronic

Equipment,

Instruments

&

Components

468

—

—

468

Entertainment

177

—

—

177

Financial

Services

315

—

—

315

Food

Products

808

—

—

808

Gas

Utilities

109

—

—

109

Ground

Transportation

391

—

—

391

Health

Care

Equipment

&

Supplies

478

—

—

478

Health

Care

Providers

&

Services

78

—

—

78

Health

Care

Technology

17

—

—

17

Hotels,

Restaurants

&

Leisure

264

—

—

264

Household

Durables

311

—

—

311

Household

Products

144

—

—

144

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

18

Morgan

Stanley

ETF

Trust

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

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

indemnifications.

The

Trust’s

max-

imum

exposure

under

these

arrangements

is

unknown.

However,

the Trust

has

not

had

prior

claims

or

losses

Investment

Type

Level

1

Unadjusted

quoted

prices

(000)

Level

2

Other

significant

observable

inputs

(000)

Level

3

Significant

unobservable

Inputs

(000)

Total

(000)

Common

Stocks

(cont’d)

Independent

Power

and

Renewable

Electricity

Producers

$

29

$

—

$

—

$

29

Industrial

Conglomerates

261

—

—

261

Insurance

1,494

—

—

1,494

Interactive

Media

&

Services

126

—

—

126

IT

Services

252

—

—

252

Leisure

Products

26

—

—

26

Life

Sciences

Tools

&

Services

129

—

—

129

Machinery

672

—

—

672

Marine

Transportation

72

—

—

72

Media

153

—

—

153

Metals

&

Mining

665

—

—

665

Multi-Utilities

230

—

—

230

Oil,

Gas

&

Consumable

Fuels

113

—

—

113

Paper

&

Forest

Products

69

—

—

69

Passenger

Airlines

81

—

—

81

Personal

Care

Products

448

—

—

448

Pharmaceuticals

1,878

—

—

1,878

Professional

Services

388

—

—

388

Real

Estate

Management

&

Development

264

—

—

264

Semiconductors

&

Semiconductor

Equipment

1,514

—

—

1,514

Software

535

—

—

535

Specialty

Retail

207

—

—

207

Technology

Hardware,

Storage

&

Peripherals

484

—

—

484

Textiles,

Apparel

&

Luxury

Goods

721

—

—

721

Trading

Companies

&

Distributors

207

—

—

207

Transportation

Infrastructure

125

—

—

125

Water

Utilities

35

—

—

35

Wireless

Telecommunication

Services

297

—

—

297

Total

Common

Stocks

24,715

—

—

24,715

Short-Term

Investment

Investment

Company

48

—

—

48

Total

Assets

$24,763

$—

$—

$24,763

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

19

Morgan

Stanley

ETF

Trust

pursuant

to

these

contracts

and

expects

the

risk

of

loss

to

be

remote.

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,

Income

and

Expenses:

 Se-

curity

transactions

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

deter-

mined

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

dividends)

net

of

applicable

withholding

taxes.

Non-cash

dividends

received

in

the

form

of

stock,

if

any,

are

recognized

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

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

ongo-

ing

services

to

shareholders

of

the

Fund

and

the

maintenance

of

shareholder

accounts

in

an

amount

up

to

0.25%

of

its

aver-

age

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

securi-

ties

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

Funds’

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

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

you

buy

or

sell

Fund

shares

on

the

secondary

market,

you

will

pay

or

receive

the

market

price,

which

may

be

higher

or

lower

than

NAV.

Your

transaction

will

be

priced

at

NAV

if

you

purchase

or

redeem

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.

Transaction

fees

assessed

during

the

period

are

in-

cluded

in

the

proceeds

or

cost

from

shares

issued

or

redeemed

on

the

Statements

of

Changes

in

Net

Assets.

G.

Security

Transactions

and

Transactions

with

Affil-

iates:

For

the

period ended

March

31,

2023 purchases

and

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

20

Morgan

Stanley

ETF

Trust

sales

of

investment

securities

for

the

Fund,

other

than

long-

term

U.S.

Government

securities,

short-term

investments

and

In-Kind transactions were $21,959,079

and

$1,543,979,

re-

spectively.

There

were

no

purchases

and

sales

of

long-term

U.S.

Government

securities

for

the

period ended

March

31,

2023.

Purchases

related

to

In-Kind

transactions

were

$4,327,708

for

period

end.

There

were

no

sales

related

to

In-Kind

transactions

for

the

period

ended

March

31,

2023.

The

Fund

invests

in

the

Institutional

Class

of

the

Morgan

Stanley

Institutional

Liquidity

Funds

—

Government

Portfolio

(the

“Liquidity

Funds”),

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

Funds.

For

the

period ended

March

31,

2023, management

fees

paid

were

reduced

by

$17 relating

to

the

Fund’s

investment

in

the

Liquidity

Funds. 

A

summary

of

the

Fund’s

transactions

in

shares

of

affiliated

investments

during

the

period ended

March

31,

2023 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

income.

Accordingly,

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:

An

investment

in

the

Fund

is

based

on

the

values

of

the

Fund's

investments,

which

may

change

due

to

economic

and

other

events

that

affect

markets

generally,

as

well

as

those

that

affect

particular

regions,

countries,

indus-

tries,

companies

or

governments.

Social,

political,

economic

and

other

conditions

and

events,

such

as

war,

natural

disasters,

health

emergencies

(e.g.,

epidemics

and

pandemics),

terrorism,

conflicts,

social

unrest,

recessions,

inflation,

rapid

interest

rate

changes

and

supply

chain

disruptions,

may

occur

and

could

significantly

impact

issuers,

industries,

governments

and

other

systems,

including

the

financial

markets

and

global

economy.

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

be

sudden

and

significant

and

may

negatively

impact

broad

segments

of

businesses

and

populations

and

have

a

significant

and

rapid

negative

impact

on

the

performance

of

and/or

income

or

yield

from

the

Fund's

investments

and

exacerbate

pre-existing

risks

to

the

Fund.

For

example,

the

extent

of

the

impact

of

a

public

health

emergency

depends

on

future

developments,

including

(i)

the

duration

and

spread

of

the

public

health

emergency,

(ii)

the

restrictions

and

advisories,

(iii)

the

effects

on

the

financial

markets,

(iv)

government

and

regulatory

responses,

and

(v)

the

effects

on

the

economy

overall

as

a

result

of

developments

such

as

disruption

to

consumer

demand,

economic

output

and

supply

chains.

The

occurrence,

duration

and

extent

of

these

or

other

types

of

adverse

economic

and

market

conditions

and

uncertainty

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

developments

and

the

extent

to

which

the

associated

conditions

impact

the

Fund

will

also

depend

on

other

future

developments,

which

are

highly

un-

certain,

difficult

to

accurately

predict

and

subject

to

change

at

any

time.

The

financial

performance

of

the

Fund's

investments

(and,

in

turn,

the

Fund's

investment

results)

as

well

as

their

liquidity

may

be

adversely

affected

because

of

these

and

similar

types

of

factors

and

developments.

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-

Affiliated

Investment

Company

Value

January

30,

2023

Purchases

at

Cost

Proceeds

from

Sales

Dividend

Income

Liquidity

Funds

$

–

$

1,101,396

$

1,052,974

$

635

Affiliated

Investment

Company

(cont'd)

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

March

31,

2023

Liquidity

Funds  

$

–

$

–

$

48,422

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

21

Morgan

Stanley

ETF

Trust

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

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.

To

the

extent

that

these

intermediaries

exit

the

business

or

are

unable

to

or

choose

not

to

proceed

with

creation

and/or

redemption

orders

with

respect

to

the

Fund

and

no

other

authorized

participant

creates

or

redeems,

shares

may

trade

at

a

discount

to

net

asset

value

(“NAV”)

and

possibly

face

trading

halts

and/or

delisting. 

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

other

factors,

may

result

in

the

shares

trading

significantly

above

(at

a

premium)

or

below

(at

a

discount)

to

NAV

or

to

the

intraday

value

of

the

Fund’s

holdings

(and,

as

a

result,

an

investor

may

pay

more

for,

or

receive

less

than,

the

underlying

value

of

the

shares,

respectively).

Buying

or

selling

shares

in

the

secondary

market

may

require

paying

brokerage

commissions

or

other

charges

imposed

by

brokers

as

determined

by

that

broker.

Brokerage

commissions

are

often

a

fixed

amount

and

may

be

a

significant

proportional

cost

when

seeking

to

buy

or

sell

relatively

small

amounts

of

shares.

In

addition,

the

market

price

of

shares,

like

the

price

of

any

exchange-traded

security,

includes

a

“bid-ask

spread”

charged

by

the

market

makers

or

other

participants

that

trade

the

particular

security.

The

spread

of

a

Fund’s

shares

varies

over

time

based

on

the

Fund’s

trading

volume

and

market

liquidity

and

may

increase

if

the

Fund’s

trading

volume,

the

spread

of

the

Fund’s

underlying

securities,

or

market

liquidity

decrease. 

Large

Shareholder

Transaction

Risk:

The

Fund

may

experience

adverse

effects

when

certain

shareholders

purchase

or

redeem

large

amounts

of

shares

of

a

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

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

22

Morgan

Stanley

ETF

Trust

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

a

Fund’s

performance

to

the

extent

that

a

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

a

Fund’s

current

expenses

being

allocated

over

a

smaller

asset

base,

leading

to

an

increase

in

a

Fund’s

expense

ratio.

Although

large

shareholder

transactions

may

be

more

frequent

under

certain

circumstanc-

es,

a

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. 

23

Semi-Annual

Report

—

March

31,

2023

(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

under

the

investment

management

agreement

(the

“Management

Agreement”),

including

portfolio

management,

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,

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

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,

2023

(unaudited)

Investment

Advisory

Agreement

Approval

(cont’d)

24

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.

As

part

of

the

Board’s

review,

the

Board

received

information

from

management

on

the

impact

of

the

COVID-19

pandemic

on

the

firm

generally

and

the

Adviser

and

the

Fund

in

particular

including,

among

other

information,

the

pandemic’s

current

and

expected

impact

on

the

Fund’s

performance

and

operations.

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.

25

Semi-Annual

Report

—

March

31,

2023

(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

1-2,

2023,

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,

2022,

through

December

31,

2022,

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

portfolios

of

the

Trust

during

that

period.

However,

during

the

period

ended

March

31,

2023,

the

Program

applied

to

the

Fund.

26

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

April

2021

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

investment

management

affiliates’

everyday

business

purposes

—

information

about

your

transactions,

experiences,

and

creditworthiness

Yes

Yes

For

our

affiliates’

everyday

business

purposes

—

information

about

your

transactions

and

experiences

Yes

No

For

our

affiliates’

everyday

business

purposes

—

information

about

your

creditworthiness

No

We

don’t

share

For

our

investment

management

affiliates

to

market

to

you

Yes

Yes

For

our

affiliates

to

market

to

you

No

We

don’t

share

For

non-affiliates

to

market

to

you

No

We

don’t

share

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

27

April

2021

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

Investment

Management

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.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

28

April

2021

Morgan

Stanley

ETF

Trust

Definitions

Investment

Management

Affiliates

MSIM

Investment

Management

Affiliates

include

registered

investment

advisers,

registered

broker-dealers,

and

registered

and

unregistered

funds

in

the

Investment

Management

Division.

Investment

Management

Affiliates

does

not

include

entities

associated

with

Morgan

Stanley

Wealth

Management,

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

Affiliates

Companies

related

by

common

ownership

or

control.

They

can

be

financial

and

non-financial

companies.

Our

affiliates

include

companies

with

a

Morgan

Stanley

name

and

financial

companies

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

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

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,

2023

(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

Joseph

J.

Kearns

Michael

F.

Klein

Patricia

A

Maleski

W.

Allen

Reed,

Chair

of

the

Board

Adviser

Morgan

Stanley

Investment

Management

Inc.

522

Fifth

Avenue

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

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

Perkins

Coie

LLP

1155

Avenue

of

the

Americas

22nd

Floor

New

York,

New

York

10036

Independent

Registered

Public

Accounting

Firm

Ernst

&

Young

LLP

200

Clarendon

Street

Boston,

MA

02116

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.

The

Fund

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

are

available

on

the

Fund's

public

website,

www.

calvert.com.

Proxy

Voting

Policies

and

Procedures

and

Proxy

Voting

Record

You

may

obtain

a

copy

of

the

Trust’s

Proxy

Voting

Policy

and

Procedures

and

information

regarding

how

the

Trust

voted

proxies

relating

to

portfolio

securities

during

the

most

recent

twelve-month

period

ended

June

30,

without

charge,

on

our

web

site

at

www.calvert.com.

This

information

is

also

available

on

the

SEC’s

website

at

www.sec.gov.

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,

which

describes

in

detail

the

fund’s

investment

policies,

risks,

fees

and

expenses.

Please

read

the

prospectus

carefully

before

you

invest

or

send

money.

For

additional

informa-

tion,

including

information

regarding

the

investments

comprising

the

Fund,

please

visit

our

website

at

www.morganstanley.com/im/shareholderreports.

ETFCALINTLRISAN 

5647986

EXP

05.31.24

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.

522

Fifth

Avenue

New

York,

New

York

10036 

©

2023

Morgan

Stanley.

Morgan

Stanley

Distribution,

Inc. 

Morgan

Stanley

ETF

Trust

Calvert

Ultra-Short

Investment

Grade

ETF

NYSE

Arca:

CVSB

Semi-Annual

Report

March

31,

2023

Morgan

Stanley

ETF

Trust

Semi-Annual

Report

—

March

31,

2023

(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.calvert.com

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

Performance

Summary

.....................................................................................

3

Portfolio

of

Investments

.....................................................................................

4

Statement

of

Assets

and

Liabilities

..........................................................................

8

Statement

of

Operations

....................................................................................

9

Statement

of

Changes

in

Net

Assets

........................................................................

10

Financial

Highlights

.........................................................................................

11

Notes

to

Financial

Statements

...............................................................................

12

Investment

Advisory

Agreement

Approval

....................................................................

18

Liquidity

Risk

Management

Program

.........................................................................

20

U.S.

Customer

Privacy

Notice

...............................................................................

21

Trustees

and

Officers

Information

...........................................................................

24

2

Semi-Annual

Report

—

March

31,

2023

(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

period

beginning

January

30,

2023

(when

the

Fund

commenced

operations)

and

ended

March

31,

2023.

Morgan

Stanley

Investment

Management

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

challenges

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

2023

3

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Performance

Summary

Calvert

Ultra-Short

Investment

Grade

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/shareholderreports.

Investment

return

and

principal

value

will

fluctuate

so

that

Fund

shares,

when

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

redemption

of

Fund

shares.

Fund's

total

returns

are

calculated

as

of

the

last

business

day

of

the

period.

Performance

Compared

to

the

Bloomberg

9-12

Months

Short

Term

Treasury

Index

(1)

Cumulative

Total

Return

for

the

period

Ended

March

31,

2023

Since

Inception

(2)

Calvert

Ultra-Short

Investment

Grade

ETF

-

NAV

(3)

0.59%

Calvert

Ultra-Short

Investment

Grade

ETF

-

Market

Price

(3)

0.61%

Bloomberg

9-12

Months

Short

Term

Treasury

Index

0.88%

(1)

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.

(2)

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.

(3)

Commenced

operations

on

January

30,

2023.

Expense

Example

Beginning

Account

Value

(1/30/23)

Actual

Ending

Account

Value

(3/31/23)

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

$1,005.90

$1,007.96

$0.40

$0.40

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

61/365

(to

reflect

the

actual

days

in

the

period).

**

Annualized.

^

The

Fund

commenced

operations

on

January

30,

2023.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

Calvert

Ultra-Short

Investment

Grade

ETF

4

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

(9.1%)

Avant

Loans

Funding

Trust,

2021-REV1

1.64%,

7/15/30(a)

$

440,000‌

$

416,344‌

LAD

Auto

Receivables

Trust,

2023-1A

5.68%,

10/15/26(a)

160,000‌

159,646‌

Lendingpoint

Asset

Securitization

Trust,

2022-C

6.56%,

2/15/30(a)

365,032‌

363,911‌

Marlette

Funding

Trust,

2023-1A

6.07%,

4/15/33(a)

220,000‌

219,950‌

Octane

Receivables

Trust,

2023-1A

5.87%,

5/21/29(a)

120,354‌

120,873‌

Oscar

US

Funding

XIII

LLC,

2021-2A

0.86%,

9/10/25(a)

125,000‌

119,818‌

Prodigy

Finance

DAC,

2021-1A

ICE

LIBOR

USD

1

Month

+

2.50%,

7.35%,

7/25/51(a)(b)

208,321‌

205,570‌

SoFi

Consumer

Loan

Program

Trust,

2023-1S

5.81%,

5/15/31(a)

120,000‌

120,132‌

Stack

Infrastructure

Issuer

LLC,

2019-1A

4.54%,

2/25/44(a)

387,636‌

380,862‌

Upstart

Securitization

Trust,

2021-5

1.31%,

11/20/31(a)

401,068‌

390,477‌

2,497,583

Commercial

Mortgage-Backed

Securities

(17.3%)

BBCMS

Mortgage

Trust

ICE

LIBOR

USD

1

Month

+

1.33%,

6.01%,

8/15/36

(a)(b)

425,000‌

421,287‌

BX

Commercial

Mortgage

Trust

CME

Term

SOFR

1

Month

+

1.03%,

5.86%,

10/15/36

(a)(b)

508,045‌

503,266‌

CAMB

Commercial

Mortgage

Trust

ICE

LIBOR

USD

1

Month

+

1.75%,

6.43%,

12/15/37

(a)(b)

288,000‌

281,675‌

Connecticut

Avenue

Securities

Trust

SOFR30A

+

2.95%,

7.52%,

6/25/42

(a)(b)

444,860‌

453,340‌

CSMC

Trust

CME

Term

SOFR

1

Month

+

3.14%,

7.97%,

9/9/24

(a)(b)

500,000‌

495,970‌

Extended

Stay

America

Trust

ICE

LIBOR

USD

1

Month

+

1.08%,

5.77%,

7/15/38

(a)(b)

536,906‌

522,426‌

FHLMC,

REMIC

ICE

LIBOR

USD

1

Month

+

0.55%,

5.23%,

4/15/36

(b)

269,748‌

269,544‌

ICE

LIBOR

USD

1

Month

+

0.40%,

5.08%,

1/15/42

(b)

351,359‌

349,007‌

Face

Amount

Value

FNMA,

REMIC

ICE

LIBOR

USD

1

Month

+

0.54%,

5.39%,

2/25/38

(b)

$

250,191‌

$

250,533‌

MHC

Commercial

Mortgage

Trust

ICE

LIBOR

USD

1

Month

+

0.80%,

5.48%,

4/15/38

(a)(b)

325,000‌

315,036‌

PNMAC

GMSR

Issuer

Trust

ICE

LIBOR

USD

1

Month

+

2.85%,

7.70%,

2/25/25

(a)(b)

500,000‌

502,052‌

Radnor

RE

Ltd.

SOFR30A

+

1.85%,

6.41%,

11/25/31

(a)(b)

387,382‌

386,200‌

4,750,336

Corporate

Bonds

(63.3%)

Banks

(23.3%)

Banco

Bilbao

Vizcaya

Argentaria

SA

0.88%,

9/18/23

200,000‌

195,496‌

5.86%,

9/14/26

(b)

200,000‌

198,418‌

Banco

Santander

SA

5.15%,

8/18/25

200,000‌

196,502‌

Bank

of

America

Corp.

5.51%,

2/4/25

(b)

605,000‌

598,531‌

5.59%,

10/24/24

(b)

200,000‌

198,232‌

5.96%,

4/25/25

(b)

200,000‌

199,522‌

Bank

of

Ireland

Group

plc

2.03%,

9/30/27

(a)(b)

400,000‌

346,541‌

Bank

of

Montreal

5.19%,

12/8/23

(b)

100,000‌

99,587‌

5.55%,

3/8/24

(b)

100,000‌

99,784‌

BPCE

SA

5.41%,

1/14/25

(a)(b)

500,000‌

494,399‌

Citigroup,

Inc.

5.53%,

5/1/25

(b)

550,000‌

543,009‌

5.56%,

1/25/26

(b)

200,000‌

196,114‌

Fifth

Third

Bancorp

3.65%,

1/25/24

140,000‌

136,646‌

HSBC

Holdings

plc

0.73%,

8/17/24

(b)

200,000‌

195,892‌

Intesa

Sanpaolo

SpA

5.25%,

1/12/24

400,000‌

398,369‌

JPMorgan

Chase

&

Co.

5.38%,

6/1/25

(b)

475,000‌

470,453‌

5.77%,

2/24/26

(b)

100,000‌

99,410‌

National

Bank

of

Canada

0.55%,

11/15/24

(b)

250,000‌

242,591‌

Skandinaviska

Enskilda

Banken

AB

0.55%,

9/1/23

(a)

200,000‌

195,867‌

Standard

Chartered

plc

0.99%,

1/12/25

(a)(b)

310,000‌

298,211‌

Truist

Financial

Corp.

5.24%,

6/9/25

(b)

400,000‌

383,146‌

UniCredit

SpA

7.83%,

12/4/23

(a)

350,000‌

353,247‌

Wells

Fargo

&

Co.

6.19%,

4/25/26

(b)

250,000‌

249,848‌

6,389,815

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

(cont’d)

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

Biotechnology

(0.3%)

Amgen,

Inc.

5.25%,

3/2/25

$

80,000‌

$

80,920‌

Capital

Markets

(2.5%)

Charles

Schwab

Corp.

(The)

5.32%,

3/18/24

(b)

155,000‌

153,035‌

Goldman

Sachs

Group,

Inc.

(The)

5.34%,

10/21/24

(b)

400,000‌

395,915‌

5.55%,

1/24/25

(b)

150,000‌

148,385‌

697,335

Chemicals

(0.7%)

Celanese

US

Holdings

LLC

5.90%,

7/5/24

200,000‌

200,166‌

Consumer

Finance

(6.1%)

AerCap

Ireland

Capital

DAC/AerCap

Global

Aviation

Trust

1.75%,

10/29/24

475,000‌

442,875‌

Ally

Financial,

Inc.

1.45%,

10/2/23

125,000‌

120,833‌

Capital

One

Financial

Corp.

1.34%,

12/6/24

(b)

105,000‌

101,429‌

5.52%,

12/6/24

(b)

450,000‌

440,382‌

General

Motors

Financial

Co.,

Inc.

2.75%,

6/20/25

225,000‌

213,148‌

6.16%,

4/7/25

(b)

350,000‌

347,774‌

1,666,441

Distributors

(0.2%)

Genuine

Parts

Co.

1.75%,

2/1/25

50,000‌

47,262‌

Diversified

REITs

(0.3%)

HAT

Holdings

I

LLC/HAT

Holdings

II

LLC

6.00%,

4/15/25

(a)

100,000‌

96,176‌

Diversified

Telecommunication

Services

(3.7%)

AT&T,

Inc.

5.45%,

3/25/24

(b)

400,000‌

399,608‌

Verizon

Communications,

Inc.

5.34%,

3/22/24

(b)

625,000‌

623,932‌

1,023,540

Electric

Utilities

(2.5%)

Enel

Finance

International

NV

2.65%,

9/10/24

(a)

200,000‌

193,153‌

NextEra

Energy

Capital

Holdings,

Inc.

6.05%,

3/1/25

493,000‌

501,785‌

694,938

Electronic

Equipment,

Instruments

&

Components

(2.6%)

Amphenol

Corp.

4.75%,

3/30/26

40,000‌

40,185‌

Arrow

Electronics,

Inc.

6.13%,

3/1/26

100,000‌

100,262‌

TD

SYNNEX

Corp.

1.25%,

8/9/24

300,000‌

280,851‌

Teledyne

Technologies,

Inc.

0.95%,

4/1/24

300,000‌

287,638‌

708,936

Face

Amount

Value

Entertainment

(0.4%)

Warnermedia

Holdings,

Inc.

6.41%,

3/15/26

$

114,000‌

$

114,610‌

Financial

Services

(3.3%)

Nationwide

Building

Society

4.36%,

8/1/24

(a)(b)

550,000‌

545,488‌

Radian

Group,

Inc.

6.63%,

3/15/25

125,000‌

124,590‌

Synchrony

Bank

5.40%,

8/22/25

250,000‌

234,701‌

904,779

Food

Products

(1.3%)

JDE

Peet's

NV

0.80%,

9/24/24

(a)

375,000‌

349,648‌

Ground

Transportation

(0.7%)

Penske

Truck

Leasing

Co.

LP

4.13%,

8/1/23

(a)

200,000‌

198,897‌

Health

Care

Equipment

&

Supplies

(1.4%)

Baxter

International,

Inc.

5.27%,

11/29/24

(b)

250,000‌

245,855‌

Zimmer

Biomet

Holdings,

Inc.

1.45%,

11/22/24

150,000‌

141,838‌

387,693

Health

Care

Providers

&

Services

(0.4%)

Centene

Corp.

4.25%,

12/15/27

100,000‌

96,446‌

Hotels,

Restaurants

&

Leisure

(0.8%)

Hyatt

Hotels

Corp.

1.80%,

10/1/24

225,000‌

213,147‌

Insurance

(2.4%)

Assurant,

Inc.

6.10%,

2/27/26

186,000‌

189,806‌

GA

Global

Funding

Trust

0.80%,

9/13/24

(a)

200,000‌

186,405‌

5.32%,

9/13/24

(a)(b)

300,000‌

291,819‌

668,030

IT

Services

(0.3%)

Kyndryl

Holdings,

Inc.

2.05%,

10/15/26

100,000‌

86,964‌

Leisure

Products

(0.8%)

Brunswick

Corp.

0.85%,

8/18/24

225,000‌

210,253‌

Life

Sciences

Tools

&

Services

(1.4%)

PerkinElmer,

Inc.

0.85%,

9/15/24

100,000‌

93,927‌

Thermo

Fisher

Scientific,

Inc.

5.37%,

10/18/24

(b)

300,000‌

298,112‌

392,039

Machinery

(1.1%)

Daimler

Truck

Finance

North

America

LLC

5.43%,

12/14/23

(a)(b)

300,000‌

296,975‌

Media

(1.0%)

Discovery

Communications

LLC

3.90%,

11/15/24

275,000‌

267,407‌

Semi-Annual

Report

—

March

31,

2023

(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

Passenger

Airlines

(1.1%)

Delta

Air

Lines,

Inc./SkyMiles

IP

Ltd.

4.50%,

10/20/25

(a)

$

300,000‌

$

295,151‌

Real

Estate

Management

&

Development

(0.4%)

Newmark

Group,

Inc.

6.13%,

11/15/23

100,000‌

99,225‌

Semiconductors

&

Semiconductor

Equipment

(0.7%)

Broadcom

Corp.

3.63%,

1/15/24

200,000‌

197,121‌

Specialized

REITs

(0.4%)

EPR

Properties

4.50%,

4/1/25

100,000‌

96,627‌

Technology

Hardware,

Storage

&

Peripherals

(1.3%)

Hewlett

Packard

Enterprise

Co.

5.90%,

10/1/24

355,000‌

359,585‌

Trading

Companies

&

Distributors

(0.5%)

Air

Lease

Corp.

0.70%,

2/15/24

150,000‌

143,492‌

Wireless

Telecommunication

Services

(1.4%)

Rogers

Communications,

Inc.

4.10%,

10/1/23

275,000‌

272,990‌

Sprint

LLC

7.88%,

9/15/23

100,000‌

100,830‌

373,820

17,357,438

U.S.

Government

and

Agency

Securities

(5.0%)

U.S.

Treasury

Note

2.75%,

8/31/23

555,000‌

550,610‌

2.88%,

11/30/23

830,000‌

820,073‌

1,370,683

Total

Fixed

Income

Securities

(Cost

$26,055,320)

25,976,040

Shares

Short-Term

Investments

(5.7%)

Investment

Company

(1.10%)

Morgan

Stanley

Institutional

Liquidity

Funds

-

Government

Portfolio

-

Institutional

Class,

(See

Note

G)

(Cost

$294,774)

294,774

294,774

Shares

Value

Commercial

Paper

(4.6%)

Avery

Dennison

Corp.

$

280,000‌

$

274,028‌

Harley-Davidson

Financial

Services,

Inc.

250,000‌

249,820‌

HSBC

USA,

Inc.

(a)

250,000‌

242,347‌

Parker-Hannifin

Corp.

250,000‌

249,097‌

TELUS

Corp.

250,000‌

249,125‌

Total

Commercial

Paper

(Cost

$1,265,118)

1,264,417

Total

Short-Term

Investments

(Cost

$1,559,892)

1,559,191

Total

Investments

(100.4%)

(Cost

$27,615,212)

(c)

27,535,231

Liabilities

in

Excess

of

Other

Assets

(-0.4%)

(103,340)

Net

Assets

(100.0%)

$27,431,891

(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,

2023.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)

At

March

31,

2023,

the

aggregate

cost

for

federal

income

tax

purposes

is

$27,615,212.

The

aggregate

gross

unrealized

appreciation

is

$42,565

and

the

aggregate

gross

unrealized

depreciation

is

$122,546,

resulting

in

net

unrealized

depreciation

of

$79,981.

CME

Chicago

Mercantile

Exchange

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

ICE

Intercontinental

Exchange

LIBOR

London

Interbank

Offered

Rate

REIT

Real

Estate

Investment

Trust

REMIC

Real

Estate

Mortgage

Investment

Conduit

SOFR

Secured

Overnight

Financing

Rate

Future

Contracts:

The

Fund

had

following

futures

contracts

open

at

March

31,

2023:

Number

of

Contracts

Expiration

Date

Notional

Amount

Value

Unrealized

Appreciation/

Depreciation

Short:

U.S.

Treasury

2

Year

Notes

2‌

Jun-23

$

(200)

$

(412,906‌)

$

(188‌)

U.S.

Treasury

5

Year

Notes

1‌

Jun-23

(100)

(109,508‌)

(2,187‌)

$

(2,375‌)

Semi-Annual

Report

—

March

31,

2023

(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

Portfolio

Composition

Classification  

Percentage

of

Total

Investments

Other*

33.7‌

%

Banks

23.2‌

Commercial

Mortgage-Backed

Securities

17.2‌

Asset-Backed

Securities

9.1‌

Consumer

Finance

6.1‌

Short-Term

Investments

5.7‌

U.S.

Government

and

Agency

Securities

5.0‌

Total

Investments

100.0%

**

*

Industries

and/or

investment

types

representing

less

than

5%

of

total

investments.

**

Does

not

include

open

short

futures

contracts

with

a

value

of

$

522,414

and

net

unrealized

depreciation

of

$

2,375.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

Ultra-Short

Investment

Grade

ETF

8

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Statement

of

Assets

and

Liabilities

March

31,

2023

Assets:

Investments

in

Securities

of

Unaffiliated

Issuers,

at

Value

(Cost

$27,320,438)

$

27,240,457

Investment

in

Security

of

Affiliated

Issuer,

at

Value

(Cost

$294,774)

294,774

Total

Investments

in

Securities,

at

Value

(Cost

$27,615,212)

27,535,231

Cash

962

Receivable

for

Investments

Sold

18,552

Interest

Receivable

140,403

Dividends

Receivable

619

Receivable

for

Variation

margin

on

Futures

Contracts

7,590

Total

Assets

27,703,357

Liabilities:

Payable

for

Investments

Purchased

148,840

Payable

for

Management

Fee

5,583

Payable

for

Dividends

to

Shareholders

117,043

Total

Liabilities

271,466

Net

Assets

$

27,431,891

Net

Assets

Consist

of:

Paid-in-Capital

$

27,512,159

Total

Distributable

Earnings

(80,268)

Net

Assets

$

27,431,891

Shares

Outstanding

$0.001

Par

Value

(unlimited

shares

authorized)

550,000

Net

Asset

Value

Per

Share

$

49.88

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

Ultra-Short

Investment

Grade

ETF

9

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Statement

of

Operations

Period

from

January

30,

2023

^

to

March

31,

2023

Investment

Income:

Interest

from

Securities

of

Unaffiliated

Issuers

$

240,693

Dividends

from

Security

of

Affiliated

Issuer

(Note

G)

1,571

Total

Investment

Income

242,264

Expenses:

Management

Fee

(Note

B)

10,528

Total

Expenses

10,528

Rebate

from

Morgan

Stanley

Affiliate

(Note

G)

(42)

Net

Expenses

10,486

Net

Investment

Income

231,778

Realized

Gain

(Loss):

Investments

Sold

(2,712)

Futures

Contracts

(35)

Net

Realized

Loss

(2,747)

Change

in

Unrealized

Appreciation

(Depreciation):

Investments

(79,981)

Futures

Contracts

(2,375)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

(82,356)

Net

Realized

Loss

and

Change

in

Unrealized

Appreciation

(Depreciation)

(85,103)

Net

Increase

in

Net

Assets

Resulting

from

Operations

$

146,675

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(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

Changes

in

Net

Assets

Period

from

January

30,

2023

^

to

March

31,

2023

Increase

(Decrease)

in

Net

Assets:

Operations:

Net

Investment

Income

$

231,778

Net

Realized

Loss

(2,747)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

(82,356)

Net

Increase

in

Net

Assets

Resulting

from

Operations

146,675

Dividends

and

Distributions

to

Shareholders:

Dividends

and

Distributions

(226,943)

Total

Dividends

and

Distributions

to

Shareholders

(226,943)

Capital

Share

Transactions:

Subscribed

20,000,000

Subscribed

In-Kind

7,512,159

Net

Increase

in

Net

Assets

Resulting

from

Capital

Share

Transactions

27,512,159

Total

Increase

in

Net

Assets

27,431,891

Net

Assets:

Beginning

of

Period

–

End

of

Period

$

27,431,891

Capital

Share

Transactions:

Beginning

of

Period

–

Shares

Subscribed

400,000

Shares

Subscribed

In-Kind

150,000

Shares

Outstanding,

End

of

Period

Net

Increase

in

550,000

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Financial

Highlights

Calvert

Ultra-Short

Investment

Grade

ETF

11

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Selected

Per

Share

Data

and

Ratios

Period

from

January

30,

2023

(1)

to

March

31,

2023

Net

Asset

Value,

Beginning

of

Period

$50.00‌

Income

(Loss)

from

Investment

Operations:

—

Net

Investment

Income

(2)

0.44‌

Net

Realized

and

Unrealized

Loss

(0.15‌)

Total

from

Investment

Operations

0.29‌

Distributions

from

and/or

in

Excess

of:

—

Net

Investment

Income

(0.41‌)

Net

Asset

Value,

End

of

Period

$49.88‌

Total

Return

(3)

0.59‌%

(4)

Ratios

to

Average

Net

Assets

and

Supplemental

Data:

$27,432

Net

Assets,

End

of

Period

(Thousands)

$27,432‌

Ratio

of

Expenses

0.24‌%

(5)(6)

Ratio

of

Net

Investment

Income

5.22‌%

(5)(6)

Ratio

of

Rebate

from

Morgan

Stanley

Affiliates

0.00‌%

(5)(7)

Portfolio

Turnover

Rate

11‌%

(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%.

12

Semi-Annual

Report

—

March

31,

2023

(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

reporting

guidance

Accounting

Standard

Codification

("ASC")

Topic

946.

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

brokers

or

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

brokers/dealers;

(2)

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;

(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;

(4)

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

fair

value.

2.

Fair

Value

Measurement:

Financial

Accounting

Standards

Board

(“FASB”)

ASC

820,

“Fair

Value

Mea-

surement”

(“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

par-

ticipants

at

the

measurement

date. ASC

820

establishes

a

three tier

hierarchy

to

distinguish

between

(1)

inputs

that

reflect

the

assumptions

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

participants

would

use

in

valuing

an

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances

(unobservable

inputs)

and

to

establish

classification

of

fair

value

measurements

for

disclosure

purposes.

Various

inputs

are

used

in

determin-

ing

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,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

13

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,

2023:

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. 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

associ-

ated

with

other

portfolio

investments.

All

of

the

Fund’s

holdings,

including

derivative

instruments,

are

marked-

to-market

each

day

with

the

change

in

value

reflected

in

unrealized

appreciation

(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

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

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

$

—

$

2,498

$

—

$

2,498

Commercial

Mortgage-Backed

Securities

—

4,750

—

4,750

Corporate

Bonds

—

17,357

—

17,357

U.S.

Government

and

Agency

Securities

—

1,371

—

1,371

Total

Fixed

Income

Securities

—

25,976

—

25,976

Short-Term

Investment

Investment

Company

295

—

—

295

Commercial

Paper

—

1,264

—

1,264

Total

Short-Term

Investments

295

1,264

—

1,559

Total

Assets

$295

$27,240

$—

$27,535

Liabilities:

Futures

Contracts

(2)

—

—

(2)

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

14

Morgan

Stanley

ETF

Trust

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

the

fair

value

of

the

Fund’s

derivative

contracts

by

primary

risk

exposure

as

of

March

31,

2023:

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,

2023

in

accordance

with

ASC

815:

For

the

period

ended

March

31,

2023,

the

approximate

average

monthly

amount

outstanding

for

each

derivative

type

is

as

follows:

4.

Indemnifications:

The Trust

enters

into

contracts

that

contain

a

variety

of

indemnifications.

The

Trust’s

max-

imum

exposure

under

these

arrangements

is

unknown.

However,

the Trust

has

not

had

prior

claims

or

losses

pursuant

to

these

contracts

and

expects

the

risk

of

loss

to

be

remote.

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,

Income

and

Expenses:

 Se-

curity

transactions

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

deter-

mined

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

dividends)

net

of

applicable

withholding

taxes.

Non-cash

dividends

received

in

the

form

of

stock,

if

any,

are

recognized

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

0.24% 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

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

Liability

Derivatives

Statement

of

Assets

and

Primary

Risk

Liabilities

Location

Exposure

Value

Futures

Contracts

Variation

Margin

on

Futures

Contracts

Interest

Rate

Risk

$(2,375)(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

Interest

Rate

Risk

Futures

Contracts

$(35)

Change

in

Unrealized

Appreciation

(Depreciation)

Primary

Risk

Exposure

Derivative

Type

Value

Interest

Rate

Risk

Futures

Contracts

$(2,375)

Futures

Contracts:

Average

monthly

notional

value

.............

416,598

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

15

Morgan

Stanley

ETF

Trust

to

pay

distribution

fees

in

connection

with

the

sale

of

its

shares

and

pay

service

fees

in

connection

with

the

provision

of

ongo-

ing

services

to

shareholders

of

the

Fund

and

the

maintenance

of

shareholder

accounts

in

an

amount

up

to

0.25%

of

its

aver-

age

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

securi-

ties

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

Funds’

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

you

buy

or

sell

Fund

shares

on

the

secondary

market,

you

will

pay

or

receive

the

market

price,

which

may

be

higher

or

lower

than

NAV.

Your

transaction

will

be

priced

at

NAV

if

you

purchase

or

redeem

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.

Transaction

fees

assessed

during

the

period

are

in-

cluded

in

the

proceeds

or

cost

from

shares

issued

or

redeemed

on

the

Statements

of

Changes

in

Net

Assets.

G.

Security

Transactions

and

Transactions

with

Affil-

iates:

For

the

period ended

March

31,

2023 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 $23,878,554

and

$2,057,027,

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,

2023.

The

Fund

invests

in

the

Institutional

Class

of

the

Morgan

Stanley

Institutional

Liquidity

Funds

—

Government

Portfolio

(the

“Liquidity

Funds”),

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

Funds.

For

the

period ended

March

31,

2023, management

fees

paid

were

reduced

by $42 relating

to

the

Fund’s

investment

in

the

Liquidity

Funds. 

A

summary

of

the

Fund’s

transactions

in

shares

of

affiliated

investments

during

the

period ended

March

31,

2023 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

income.

Accordingly,

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

Affiliated

Investment

Company

Value

January

30,

2023

Purchases

at

Cost

Proceeds

from

Sales

Dividend

Income

Liquidity

Funds

$

–

$

2,611,572

$

2,316,798

$

1,571

Affiliated

Investment

Company

(cont'd)

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

March

31,

2023

Liquidity

Funds  

$

–

$

–

$

294,774

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

16

Morgan

Stanley

ETF

Trust

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:

An

investment

in

the

Fund

is

based

on

the

values

of

the

Fund's

investments,

which

may

change

due

to

economic

and

other

events

that

affect

markets

generally,

as

well

as

those

that

affect

particular

regions,

countries,

indus-

tries,

companies

or

governments.

Social,

political,

economic

and

other

conditions

and

events,

such

as

war,

natural

disasters,

health

emergencies

(e.g.,

epidemics

and

pandemics),

terrorism,

conflicts,

social

unrest,

recessions,

inflation,

rapid

interest

rate

changes

and

supply

chain

disruptions,

may

occur

and

could

significantly

impact

issuers,

industries,

governments

and

other

systems,

including

the

financial

markets

and

global

economy.

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

be

sudden

and

significant

and

may

negatively

impact

broad

segments

of

businesses

and

populations

and

have

a

significant

and

rapid

negative

impact

on

the

performance

of

and/or

income

or

yield

from

the

Fund's

investments

and

exacerbate

pre-existing

risks

to

the

Fund.

For

example,

the

extent

of

the

impact

of

a

public

health

emergency

depends

on

future

developments,

including

(i)

the

duration

and

spread

of

the

public

health

emergency,

(ii)

the

restrictions

and

advisories,

(iii)

the

effects

on

the

financial

markets,

(iv)

government

and

regulatory

responses,

and

(v)

the

effects

on

the

economy

overall

as

a

result

of

developments

such

as

disruption

to

consumer

demand,

economic

output

and

supply

chains.

The

occurrence,

duration

and

extent

of

these

or

other

types

of

adverse

economic

and

market

conditions

and

uncertainty

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

developments

and

the

extent

to

which

the

associated

conditions

impact

the

Fund

will

also

depend

on

other

future

developments,

which

are

highly

un-

certain,

difficult

to

accurately

predict

and

subject

to

change

at

any

time.

The

financial

performance

of

the

Fund's

investments

(and,

in

turn,

the

Fund's

investment

results)

as

well

as

their

liquidity

may

be

adversely

affected

because

of

these

and

similar

types

of

factors

and

developments.

Authorized

Participant

Concentration

Risk:

Only

an

authorized

participant

may

engage

in

creation

or

redemption

transactions

directly

with

the

Fund.

The

Fund

has

a

limited

number

of

intermediaries

that

act

as

authorized

participants

and

none

of

these

authorized

participants

is

or

will

be

obligated

to

engage

in

creation

or

redemption

transactions.

To

the

extent

that

these

intermediaries

exit

the

business

or

are

unable

to

or

choose

not

to

proceed

with

creation

and/or

redemption

orders

with

respect

to

the

Fund

and

no

other

authorized

participant

creates

or

redeems,

shares

may

trade

at

a

discount

to

net

asset

value

(“NAV”)

and

possibly

face

trading

halts

and/or

delisting. 

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

other

factors,

may

result

in

the

shares

trading

significantly

above

(at

a

premium)

or

below

(at

a

discount)

to

NAV

or

to

the

intraday

value

of

the

Fund’s

holdings

(and,

as

a

result,

an

investor

may

pay

more

for,

or

receive

less

than,

the

underlying

value

of

the

shares,

respectively).

Buying

or

selling

shares

in

the

secondary

market

may

require

paying

brokerage

commissions

or

other

charges

imposed

by

brokers

as

determined

by

that

broker.

Brokerage

commissions

are

often

a

fixed

amount

and

may

be

a

significant

proportional

cost

when

seeking

to

buy

or

sell

relatively

small

amounts

of

shares.

In

addition,

the

market

price

of

shares,

like

the

price

of

any

exchange-traded

security,

includes

a

“bid-ask

spread”

charged

by

the

market

makers

or

other

participants

that

trade

the

particular

security.

The

spread

of

a

Fund’s

shares

varies

over

time

based

on

the

Fund’s

trading

volume

and

market

liquidity

and

may

increase

if

the

Fund’s

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

17

Morgan

Stanley

ETF

Trust

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

a

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

a

Fund’s

performance

to

the

extent

that

a

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

a

Fund’s

current

expenses

being

allocated

over

a

smaller

asset

base,

leading

to

an

increase

in

a

Fund’s

expense

ratio.

Although

large

shareholder

transactions

may

be

more

frequent

under

certain

circumstanc-

es,

a

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,

2023

(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

under

the

investment

management

agreement

(the

“Management

Agreement”),

including

portfolio

management,

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,

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

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,

2023

(unaudited)

Investment

Advisory

Agreement

Approval

(cont’d)

19

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.

As

part

of

the

Board’s

review,

the

Board

received

information

from

management

on

the

impact

of

the

COVID-19

pandemic

on

the

firm

generally

and

the

Adviser

and

the

Fund

in

particular

including,

among

other

information,

the

pandemic’s

current

and

expected

impact

on

the

Fund’s

performance

and

operations.

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.

20

Semi-Annual

Report

—

March

31,

2023

(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

1-2,

2023,

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,

2022,

through

December

31,

2022,

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

portfolios

of

the

Trust

during

that

period.

However,

during

the

period

ended

March

31,

2023,

the

Program

applied

to

the

Fund.

21

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

April

2021

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

investment

management

affiliates’

everyday

business

purposes

—

information

about

your

transactions,

experiences,

and

creditworthiness

Yes

Yes

For

our

affiliates’

everyday

business

purposes

—

information

about

your

transactions

and

experiences

Yes

No

For

our

affiliates’

everyday

business

purposes

—

information

about

your

creditworthiness

No

We

don’t

share

For

our

investment

management

affiliates

to

market

to

you

Yes

Yes

For

our

affiliates

to

market

to

you

No

We

don’t

share

For

non-affiliates

to

market

to

you

No

We

don’t

share

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

22

April

2021

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

Investment

Management

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.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

23

April

2021

Morgan

Stanley

ETF

Trust

Definitions

Investment

Management

Affiliates

MSIM

Investment

Management

Affiliates

include

registered

investment

advisers,

registered

broker-dealers,

and

registered

and

unregistered

funds

in

the

Investment

Management

Division.

Investment

Management

Affiliates

does

not

include

entities

associated

with

Morgan

Stanley

Wealth

Management,

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

Affiliates

Companies

related

by

common

ownership

or

control.

They

can

be

financial

and

non-financial

companies.

Our

affiliates

include

companies

with

a

Morgan

Stanley

name

and

financial

companies

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

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

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.

24

Morgan

Stanley

ETF

Trust

Semi-Annual

Report

—

March

31,

2023

(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

Joseph

J.

Kearns

Michael

F.

Klein

Patricia

A

Maleski

W.

Allen

Reed,

Chair

of

the

Board

Adviser

Morgan

Stanley

Investment

Management

Inc.

522

Fifth

Avenue

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

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

Perkins

Coie

LLP

1155

Avenue

of

the

Americas

22nd

Floor

New

York,

New

York

10036

Independent

Registered

Public

Accounting

Firm

Ernst

&

Young

LLP

200

Clarendon

Street

Boston,

MA

02116

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.

The

Fund

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

are

available

on

the

Fund's

public

website,

www.

calvert.com.

Proxy

Voting

Policies

and

Procedures

and

Proxy

Voting

Record

You

may

obtain

a

copy

of

the

Trust’s

Proxy

Voting

Policy

and

Procedures

and

information

regarding

how

the

Trust

voted

proxies

relating

to

portfolio

securities

during

the

most

recent

twelve-month

period

ended

June

30,

without

charge,

on

our

web

site

at

www.calvert.com.

This

information

is

also

available

on

the

SEC’s

website

at

www.sec.gov.

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,

which

describes

in

detail

the

fund’s

investment

policies,

risks,

fees

and

expenses.

Please

read

the

prospectus

carefully

before

you

invest

or

send

money.

For

additional

informa-

tion,

including

information

regarding

the

investments

comprising

the

Fund,

please

visit

our

website

at

www.morganstanley.com/im/shareholderreports.

ETFCALULTSHORTINVGRDSAN 

5648245

EXP

05.31.24

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.

522

Fifth

Avenue

New

York,

New

York

10036 

©

2023

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,

2023

Morgan

Stanley

ETF

Trust

Semi-Annual

Report

—

March

31,

2023

(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.calvert.com

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

Performance

Summary

.....................................................................................

3

Portfolio

of

Investments

.....................................................................................

4

Statement

of

Assets

and

Liabilities

..........................................................................

13

Statement

of

Operations

....................................................................................

14

Statement

of

Changes

in

Net

Assets

........................................................................

15

Financial

Highlights

.........................................................................................

16

Notes

to

Financial

Statements

...............................................................................

17

Investment

Advisory

Agreement

Approval

....................................................................

23

Liquidity

Risk

Management

Program

.........................................................................

25

U.S.

Customer

Privacy

Notice

...............................................................................

26

Trustees

and

Officers

Information

...........................................................................

29

2

Semi-Annual

Report

—

March

31,

2023

(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

period

beginning

January

30,

2023

(when

the

Fund

commenced

opera-

tions)

and

ended

March

31,

2023.

Morgan

Stanley

Investment

Management

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

challenges

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

2023

3

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Performance

Summary

Calvert

US

Large-Cap

Core

Responsible

Index

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/shareholderreports.

Investment

return

and

principal

value

will

fluctuate

so

that

Fund

shares,

when

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

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)

Cumulative

Total

Return

for

the

period

Ended

March

31,

2023

Since

Inception

(3)

Calvert

US

Large-Cap

Core

Responsible

Index

ETF

-

NAV

(4)

2.41%

Calvert

US

Large-Cap

Core

Responsible

Index

ETF

-

Market

Price

(4)

2.35%

Russell

1000

®

Index

2.27%

Calvert

US

Large-Cap

Core

Responsible

Index

2.46%

(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.

Expense

Example

Beginning

Account

Value

(1/30/23)

Actual

Ending

Account

Value

(3/31/23)

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

$1,024.10

$1,008.11

$0.25

$0.25

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

61/365

(to

reflect

the

actual

days

in

the

period).

**

Annualized.

^

The

Fund

commenced

operations

on

January

30,

2023.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

Calvert

US

Large-Cap

Core

Responsible

Index

ETF

4

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Shares

Value

Common

Stocks

(99.8%)

Aerospace

&

Defense

(0.2%)

Axon

Enterprise,

Inc.

(a)

359

$

80,721

Curtiss-Wright

Corp.

211

37,191

HEICO

Corp.

216

36,945

Hexcel

Corp.

473

32,282

Woodward,

Inc.

303

29,503

216,642

Air

Freight

&

Logistics

(0.8%)

CH

Robinson

Worldwide,

Inc.

430

42,729

Expeditors

International

of

Washington,

Inc.

597

65,742

FedEx

Corp.

863

197,187

GXO

Logistics,

Inc.

(a)

483

24,372

United

Parcel

Service,

Inc.

,

Class

 B

2,745

532,502

862,532

Automobile

Components

(0.2%)

Aptiv

plc

(a)

1,018

114,210

Autoliv,

Inc.

330

30,809

BorgWarner,

Inc.

892

43,806

Gentex

Corp.

899

25,199

Lear

Corp.

215

29,990

244,014

Automobiles

(2.1%)

Ford

Motor

Co.

14,748

185,825

General

Motors

Co.

5,248

192,497

Harley-Davidson,

Inc.

566

21,491

Rivian

Automotive,

Inc.

,

Class

 A(a)

2,286

35,387

Tesla,

Inc.

(a)

8,872

1,840,585

Thor

Industries,

Inc.

199

15,848

2,291,633

Banks

(4.1%)

Bank

of

America

Corp.

25,725

735,735

Bank

OZK

483

16,519

BOK

Financial

Corp.

126

10,636

Cadence

Bank

761

15,798

Citigroup,

Inc.

7,765

364,101

Citizens

Financial

Group,

Inc.

1,940

58,918

Comerica,

Inc.

504

21,884

Commerce

Bancshares,

Inc.

493

28,766

Cullen/Frost

Bankers,

Inc.

245

25,808

East

West

Bancorp,

Inc.

572

31,746

Fifth

Third

Bancorp

2,709

72,168

First

Citizens

BancShares,

Inc.

,

Class

 A

42

40,870

First

Financial

Bankshares,

Inc.

529

16,875

First

Horizon

Corp.

2,092

37,196

First

Interstate

BancSystem,

Inc.

,

Class

 A

357

10,660

First

Republic

Bank

706

9,877

FNB

Corp.

1,488

17,261

Glacier

Bancorp,

Inc.

481

20,207

Hancock

Whitney

Corp.

354

12,886

Home

BancShares,

Inc.

787

17,086

Huntington

Bancshares,

Inc.

5,655

63,336

JPMorgan

Chase

&

Co.

9,857

1,284,466

KeyCorp

3,690

46,199

M&T

Bank

Corp.

674

80,590

New

York

Community

Bancorp,

Inc.

2,787

25,194

Old

National

Bancorp

1,212

17,477

Shares

Value

Pinnacle

Financial

Partners,

Inc.

287

$

15,831

PNC

Financial

Services

Group,

Inc.

(The)

1,596

202,852

Popular,

Inc.

273

15,673

Prosperity

Bancshares,

Inc.

361

22,209

Regions

Financial

Corp.

3,773

70,027

ServisFirst

Bancshares,

Inc.

212

11,581

SouthState

Corp.

301

21,449

Synovus

Financial

Corp.

560

17,265

Truist

Financial

Corp.

5,281

180,082

U.S.

Bancorp

5,346

192,723

UMB

Financial

Corp.

168

9,697

United

Bankshares,

Inc.

536

18,867

Valley

National

Bancorp

1,799

16,623

Webster

Financial

Corp.

670

26,411

Wells

Fargo

&

Co.

14,802

553,299

Western

Alliance

Bancorp

393

13,967

Wintrust

Financial

Corp.

254

18,529

Zions

Bancorp

NA

567

16,970

4,506,314

Beverages

(2.0%)

Celsius

Holdings,

Inc.

(a)

210

19,518

Coca-Cola

Co.

(The)

14,394

892,860

Coca-Cola

Consolidated,

Inc.

16

8,561

Keurig

Dr

Pepper,

Inc.

4,319

152,374

Monster

Beverage

Corp.

(a)

3,500

189,035

PepsiCo,

Inc.

5,037

918,245

2,180,593

Biotechnology

(3.5%)

AbbVie,

Inc.

6,334

1,009,450

Alkermes

plc

(a)

710

20,015

Alnylam

Pharmaceuticals,

Inc.

(a)

519

103,966

Amgen,

Inc.

2,243

542,245

Apellis

Pharmaceuticals,

Inc.

(a)

408

26,912

Biogen,

Inc.

(a)

606

168,486

Biohaven

Ltd.

(a)

287

3,920

BioMarin

Pharmaceutical,

Inc.

(a)

777

75,555

Exact

Sciences

Corp.

(a)

753

51,061

Exelixis,

Inc.

(a)

1,372

26,631

Gilead

Sciences,

Inc.

5,251

435,675

Halozyme

Therapeutics,

Inc.

(a)

576

21,997

Horizon

Therapeutics

plc

(a)

948

103,465

Incyte

Corp.

(a)

770

55,648

Ionis

Pharmaceuticals,

Inc.

(a)

602

21,516

Moderna,

Inc.

(a)

1,412

216,855

Neurocrine

Biosciences,

Inc.

(a)

395

39,982

Regeneron

Pharmaceuticals,

Inc.

(a)

431

354,140

Sarepta

Therapeutics,

Inc.

(a)

347

47,827

Seagen,

Inc.

(a)

568

115,003

United

Therapeutics

Corp.

(a)

184

41,209

Vertex

Pharmaceuticals,

Inc.

(a)

1,078

339,645

3,821,203

Broadline

Retail

(2.8%)

Amazon.com,

Inc.

(a)

28,589

2,952,958

Dillard's,

Inc.

,

Class

 A

8

2,461

eBay,

Inc.

1,784

79,156

Etsy,

Inc.

(a)

417

46,425

Kohl's

Corp.

373

8,780

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

(cont’d)

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

Broadline

Retail

(cont’d)

Macy's,

Inc.

936

$

16,371

Nordstrom,

Inc.

414

6,736

3,112,887

Building

Products

(1.0%)

Advanced

Drainage

Systems,

Inc.

384

32,337

Allegion

plc

477

50,910

Carlisle

Cos.,

Inc.

448

101,279

Carrier

Global

Corp.

4,566

208,894

Fortune

Brands

Innovations,

Inc.

424

24,902

Johnson

Controls

International

plc

3,736

224,982

Lennox

International,

Inc.

173

43,471

Masco

Corp.

752

37,389

Masterbrand,

Inc.

(a)

515

4,141

Owens

Corning

820

78,556

Simpson

Manufacturing

Co.,

Inc.

226

24,779

Trane

Technologies

plc

1,248

229,607

Trex

Co.,

Inc.

(a)

395

19,225

UFP

Industries,

Inc.

211

16,768

1,097,240

Capital

Markets

(3.8%)

Affiliated

Managers

Group,

Inc.

133

18,942

Ameriprise

Financial,

Inc.

410

125,665

Ares

Management

Corp.

558

46,560

Bank

of

New

York

Mellon

Corp.

(The)

3,214

146,044

BlackRock,

Inc.

582

389,428

Blackstone,

Inc.

2,787

244,810

Blue

Owl

Capital,

Inc.

1,777

19,689

Carlyle

Group,

Inc.

(The)

828

25,718

Cboe

Global

Markets,

Inc.

424

56,918

Charles

Schwab

Corp.

(The)

6,060

317,423

CME

Group,

Inc.

1,428

273,491

Coinbase

Global,

Inc.

,

Class

 A(a)

623

42,096

Evercore,

Inc.

,

Class

 A

138

15,922

FactSet

Research

Systems,

Inc.

143

59,358

Franklin

Resources,

Inc.

1,186

31,951

Goldman

Sachs

Group,

Inc.

(The)

1,334

436,365

Houlihan

Lokey,

Inc.

212

18,548

Interactive

Brokers

Group,

Inc.

,

Class

 A

393

32,446

Intercontinental

Exchange,

Inc.

2,204

229,855

Invesco

Ltd.

1,827

29,963

Jefferies

Financial

Group,

Inc.

865

27,455

KKR

&

Co.,

Inc.

2,295

120,533

LPL

Financial

Holdings,

Inc.

311

62,946

MarketAxess

Holdings,

Inc.

139

54,389

Moody's

Corp.

616

188,508

Morningstar,

Inc.

96

19,491

MSCI,

Inc.

302

169,026

Nasdaq,

Inc.

1,360

74,351

Northern

Trust

Corp.

820

72,267

Raymond

James

Financial,

Inc.

777

72,471

S&P

Global,

Inc.

1,252

431,652

SEI

Investments

Co.

451

25,955

State

Street

Corp.

1,372

103,847

Stifel

Financial

Corp.

427

25,231

T

Rowe

Price

Group,

Inc.

873

98,562

Tradeweb

Markets,

Inc.

,

Class

 A

451

35,638

Shares

Value

Virtu

Financial,

Inc.

,

Class

 A

429

$

8,108

4,151,622

Chemicals

(1.5%)

Air

Products

and

Chemicals,

Inc.

1,184

340,057

Ashland,

Inc.

302

31,018

Avient

Corp.

479

19,716

Axalta

Coating

Systems

Ltd.

(a)

1,230

37,257

Cabot

Corp.

303

23,222

Celanese

Corp.

594

64,681

Eastman

Chemical

Co.

645

54,399

Ecolab,

Inc.

1,377

227,935

Element

Solutions,

Inc.

1,246

24,060

FMC

Corp.

683

83,415

Huntsman

Corp.

1,012

27,688

International

Flavors

&

Fragrances,

Inc.

1,400

128,744

Livent

Corp.

(a)

1,003

21,785

Mosaic

Co.

(The)

1,867

85,658

PPG

Industries,

Inc.

1,285

171,650

Sherwin-Williams

Co.

(The)

1,295

291,077

1,632,362

Commercial

Services

&

Supplies

(0.7%)

Cintas

Corp.

278

128,625

Clean

Harbors,

Inc.

(a)

225

32,076

Copart,

Inc.

(a)

1,677

126,127

MSA

Safety,

Inc.

204

27,234

Republic

Services,

Inc.

942

127,377

Rollins,

Inc.

963

36,142

Stericycle,

Inc.

(a)

436

19,014

Tetra

Tech,

Inc.

246

36,140

Waste

Management,

Inc.

1,778

290,116

822,851

Communications

Equipment

(1.0%)

Arista

Networks,

Inc.

(a)

817

137,142

Ciena

Corp.

(a)

523

27,468

Cisco

Systems,

Inc.

14,222

743,455

F5,

Inc.

(a)

214

31,178

Juniper

Networks,

Inc.

1,125

38,722

Lumentum

Holdings,

Inc.

(a)

265

14,313

Motorola

Solutions,

Inc.

572

163,666

1,155,944

Construction

&

Engineering

(0.3%)

AECOM

636

53,627

EMCOR

Group,

Inc.

214

34,794

MasTec,

Inc.

(a)

282

26,632

Quanta

Services,

Inc.

648

107,983

Valmont

Industries,

Inc.

106

33,844

WillScot

Mobile

Mini

Holdings

Corp.

(a)

926

43,411

300,291

Construction

Materials

(0.2%)

Vulcan

Materials

Co.

1,196

205,186

Consumer

Finance

(0.7%)

Ally

Financial,

Inc.

1,217

31,021

American

Express

Co.

2,407

397,035

Capital

One

Financial

Corp.

1,510

145,201

Credit

Acceptance

Corp.

(a)

17

7,413

Discover

Financial

Services

1,039

102,695

Semi-Annual

Report

—

March

31,

2023

(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

Consumer

Finance

(cont’d)

OneMain

Holdings,

Inc.

490

$

18,169

SLM

Corp.

931

11,535

SoFi

Technologies,

Inc.

(a)

3,362

20,407

Synchrony

Financial

1,758

51,123

Upstart

Holdings,

Inc.

(a)

282

4,481

789,080

Consumer

Staples

Distribution

&

Retail

(2.2%)

Albertsons

Cos.,

Inc.

,

Class

 A

939

19,512

BJ's

Wholesale

Club

Holdings,

Inc.

(a)

451

34,308

Casey's

General

Stores,

Inc.

174

37,664

Costco

Wholesale

Corp.

1,464

727,418

Dollar

General

Corp.

736

154,899

Dollar

Tree,

Inc.

(a)

731

104,935

Kroger

Co.

(The)

3,377

166,722

Performance

Food

Group

Co.

(a)

722

43,565

Sysco

Corp.

2,404

185,661

Target

Corp.

1,511

250,267

U.S.

Foods

Holding

Corp.

(a)

1,047

38,676

Walmart,

Inc.

4,644

684,758

2,448,385

Containers

&

Packaging

(0.5%)

AptarGroup,

Inc.

352

41,603

Avery

Dennison

Corp.

434

77,656

Ball

Corp.

1,710

94,238

Berry

Global

Group,

Inc.

670

39,463

Crown

Holdings,

Inc.

644

53,265

Graphic

Packaging

Holding

Co.

1,690

43,078

Packaging

Corp.

of

America

488

67,749

Sealed

Air

Corp.

791

36,315

Silgan

Holdings,

Inc.

459

24,634

Sonoco

Products

Co.

538

32,818

Westrock

Co.

1,366

41,622

552,441

Distributors

(0.1%)

Genuine

Parts

Co.

462

77,297

LKQ

Corp.

886

50,290

Pool

Corp.

128

43,832

171,419

Diversified

Consumer

Services

(0.1%)

ADT,

Inc.

918

6,637

Bright

Horizons

Family

Solutions,

Inc.

(a)

220

16,938

H&R

Block,

Inc.

606

21,362

Service

Corp.

International

585

40,236

85,173

Diversified

Telecommunication

Services

(1.0%)

AT&T,

Inc.

24,733

476,110

Iridium

Communications,

Inc.

403

24,958

Lumen

Technologies,

Inc.

3,474

9,206

Verizon

Communications,

Inc.

14,567

566,511

1,076,785

Electric

Utilities

(1.3%)

Alliant

Energy

Corp.

1,149

61,357

Avangrid,

Inc.

342

13,639

Constellation

Energy

Corp.

1,496

117,436

Evergy,

Inc.

1,046

63,931

Shares

Value

Eversource

Energy

1,586

$

124,120

Exelon

Corp.

4,539

190,139

Hawaiian

Electric

Industries,

Inc.

515

19,776

IDACORP,

Inc.

225

24,374

NextEra

Energy,

Inc.

8,194

631,594

NRG

Energy,

Inc.

1,035

35,490

PNM

Resources,

Inc.

400

19,472

Portland

General

Electric

Co.

413

20,192

Xcel

Energy,

Inc.

2,496

168,330

1,489,850

Electrical

Equipment

(1.2%)

Acuity

Brands,

Inc.

173

31,612

AMETEK,

Inc.

1,251

181,808

Atkore,

Inc.

(a)

216

30,344

ChargePoint

Holdings,

Inc.

(a)

1,459

15,276

Eaton

Corp.

plc

2,105

360,671

Emerson

Electric

Co.

3,122

272,051

Generac

Holdings,

Inc.

(a)

336

36,291

Hubbell,

Inc.

295

71,776

nVent

Electric

plc

906

38,904

Plug

Power,

Inc.

(a)

1,755

20,569

Regal

Rexnord

Corp.

351

49,396

Rockwell

Automation,

Inc.

619

181,645

Sensata

Technologies

Holding

plc

837

41,867

Sunrun,

Inc.

(a)

724

14,589

1,346,799

Electronic

Equipment,

Instruments

&

Components

(1.0%)

Amphenol

Corp.

,

Class

 A

3,230

263,956

Arrow

Electronics,

Inc.

(a)

186

23,226

Avnet,

Inc.

313

14,148

CDW

Corp.

473

92,183

Cognex

Corp.

921

45,635

Coherent

Corp.

(a)

665

25,323

Corning,

Inc.

2,668

94,127

IPG

Photonics

Corp.

(a)

98

12,084

Jabil,

Inc.

452

39,848

Keysight

Technologies,

Inc.

(a)

961

155,182

Littelfuse,

Inc.

130

34,852

National

Instruments

Corp.

481

25,209

Novanta,

Inc.

(a)

187

29,750

Rogers

Corp.

(a)

58

9,479

TD

SYNNEX

Corp.

159

15,390

Teledyne

Technologies,

Inc.

(a)

254

113,629

Trimble,

Inc.

(a)

1,354

70,977

Zebra

Technologies

Corp.

,

Class

 A(a)

176

55,968

1,120,966

Energy

Equipment

&

Services

(0.2%)

Baker

Hughes

Co.

8,257

238,297

Entertainment

(1.5%)

AMC

Entertainment

Holdings,

Inc.

,

Class

 A(a)

1,944

9,739

Electronic

Arts,

Inc.

894

107,682

Liberty

Media

Corp-Liberty

Formula

One

,

Class

 A(a)

104

7,020

Live

Nation

Entertainment,

Inc.

(a)

561

39,270

Netflix,

Inc.

(a)

1,517

524,093

Playtika

Holding

Corp.

(a)

388

4,369

ROBLOX

Corp.

,

Class

 A(a)

1,508

67,830

Semi-Annual

Report

—

March

31,

2023

(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

Entertainment

(cont’d)

Roku,

Inc.

(a)

428

$

28,171

Take-Two

Interactive

Software,

Inc.

(a)

545

65,019

Walt

Disney

Co.

(The)

(a)

7,086

709,521

Warner

Bros

Discovery,

Inc.

(a)

8,666

130,857

Warner

Music

Group

Corp.

,

Class

 A

525

17,519

1,711,090

Financial

Services

(3.0%)

Affirm

Holdings,

Inc.

(a)

682

7,686

Block,

Inc.

(a)

1,851

127,071

Equitable

Holdings,

Inc.

1,460

37,069

Essent

Group

Ltd.

434

17,382

Euronet

Worldwide,

Inc.

(a)

170

19,023

Fidelity

National

Information

Services,

Inc.

2,033

110,453

Fiserv,

Inc.

(a)

2,188

247,310

Jack

Henry

&

Associates,

Inc.

257

38,735

Marqeta,

Inc.

,

Class

 A(a)

1,623

7,417

Mastercard,

Inc.

,

Class

 A

2,927

1,063,701

MGIC

Investment

Corp.

1,237

16,600

PayPal

Holdings,

Inc.

(a)

3,899

296,090

Rocket

Cos.,

Inc.

,

Class

 A(a)

520

4,711

TFS

Financial

Corp.

260

3,284

Toast,

Inc.

,

Class

 A(a)

1,145

20,324

Visa,

Inc.

,

Class

 A

5,593

1,260,998

Voya

Financial,

Inc.

386

27,584

Western

Union

Co.

(The)

1,392

15,521

WEX,

Inc.

(a)

141

25,928

3,346,887

Food

Products

(1.6%)

Bunge

Ltd.

699

66,769

Campbell

Soup

Co.

955

52,506

Conagra

Brands,

Inc.

2,257

84,773

Darling

Ingredients,

Inc.

(a)

757

44,209

Flowers

Foods,

Inc.

945

25,902

General

Mills,

Inc.

2,789

238,348

Hershey

Co.

(The)

693

176,306

Hormel

Foods

Corp.

1,382

55,114

Ingredion,

Inc.

303

30,824

J.M.

Smucker

Co.

(The)

485

76,324

Kellogg

Co.

1,206

80,754

Kraft

Heinz

Co.

(The)

3,790

146,559

Lamb

Weston

Holdings,

Inc.

674

70,447

McCormick

&

Co.,

Inc.

(Non-Voting)

1,251

104,096

Mondelez

International,

Inc.

,

Class

 A

6,451

449,764

Post

Holdings,

Inc.

(a)

258

23,186

1,725,881

Gas

Utilities

(0.1%)

National

Fuel

Gas

Co.

409

23,615

New

Jersey

Resources

Corp.

450

23,940

ONE

Gas,

Inc.

251

19,887

Southwest

Gas

Holdings,

Inc.

315

19,672

UGI

Corp.

962

33,439

120,553

Ground

Transportation

(0.7%)

Avis

Budget

Group,

Inc.

(a)

90

17,532

JB

Hunt

Transport

Services,

Inc.

306

53,691

Knight-Swift

Transportation

Holdings,

Inc.

570

32,251

Shares

Value

Landstar

System,

Inc.

129

$

23,125

Old

Dominion

Freight

Line,

Inc.

353

120,316

RXO,

Inc.

(a)

469

9,211

Ryder

System,

Inc.

173

15,438

Saia,

Inc.

(a)

95

25,848

Schneider

National,

Inc.

,

Class

 B

240

6,420

Union

Pacific

Corp.

2,290

460,885

XPO,

Inc.

(a)

473

15,089

779,806

Health

Care

Equipment

&

Supplies

(3.9%)

Abbott

Laboratories

6,744

682,897

Align

Technology,

Inc.

(a)

304

101,579

Baxter

International,

Inc.

2,131

86,433

Becton

Dickinson

&

Co.

1,184

293,087

Boston

Scientific

Corp.

(a)

6,007

300,530

Cooper

Cos.,

Inc.

(The)

210

78,406

DENTSPLY

SIRONA,

Inc.

912

35,823

Dexcom,

Inc.

(a)

1,600

185,888

Edwards

Lifesciences

Corp.

(a)

2,536

209,803

Envista

Holdings

Corp.

(a)

698

28,534

Globus

Medical,

Inc.

,

Class

 A(a)

318

18,011

Hologic,

Inc.

(a)

1,028

82,960

ICU

Medical,

Inc.

(a)

86

14,187

IDEXX

Laboratories,

Inc.

(a)

346

173,028

Inspire

Medical

Systems,

Inc.

(a)

123

28,791

Insulet

Corp.

(a)

281

89,628

Integra

LifeSciences

Holdings

Corp.

(a)

317

18,199

Intuitive

Surgical,

Inc.

(a)

1,466

374,519

iRhythm

Technologies,

Inc.

(a)

128

15,876

Lantheus

Holdings,

Inc.

(a)

286

23,612

Masimo

Corp.

(a)

207

38,200

Medtronic

plc

5,599

451,391

Novocure

Ltd.

(a)

422

25,379

Omnicell,

Inc.

(a)

167

9,798

Penumbra,

Inc.

(a)

145

40,410

ResMed,

Inc.

607

132,927

Shockwave

Medical,

Inc.

(a)

144

31,223

STERIS

plc

420

80,338

Stryker

Corp.

1,478

421,925

Tandem

Diabetes

Care,

Inc.

(a)

279

11,330

Teleflex,

Inc.

190

48,129

Zimmer

Biomet

Holdings,

Inc.

890

114,988

4,247,829

Health

Care

Providers

&

Services

(1.6%)

agilon

health,

Inc.

(a)

901

21,399

AMN

Healthcare

Services,

Inc.

(a)

171

14,186

Centene

Corp.

(a)

2,366

149,555

Chemed

Corp.

56

30,114

CVS

Health

Corp.

5,402

401,423

DaVita,

Inc.

(a)

241

19,548

Elevance

Health,

Inc.

995

457,511

Encompass

Health

Corp.

441

23,858

Enhabit,

Inc.

(a)

261

3,631

Ensign

Group,

Inc.

(The)

223

21,305

Guardant

Health,

Inc.

(a)

430

10,079

HealthEquity,

Inc.

(a)

297

17,437

Henry

Schein,

Inc.

(a)

550

44,847

Semi-Annual

Report

—

March

31,

2023

(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

Health

Care

Providers

&

Services

(cont’d)

Humana,

Inc.

522

$

253,410

Laboratory

Corp.

of

America

Holdings

363

83,279

Molina

Healthcare,

Inc.

(a)

235

62,860

Option

Care

Health,

Inc.

(a)

674

21,413

Premier,

Inc.

,

Class

 A

517

16,735

Quest

Diagnostics,

Inc.

468

66,213

R1

RCM,

Inc.

(a)

639

9,585

1,728,388

Health

Care

Technology

(0.1%)

Doximity,

Inc.

,

Class

 A(a)

398

12,887

Teladoc

Health,

Inc.

(a)

683

17,690

Veeva

Systems,

Inc.

,

Class

 A(a)

481

88,403

118,980

Hotels,

Restaurants

&

Leisure

(2.0%)

Airbnb,

Inc.

,

Class

 A(a)

1,292

160,725

Aramark

1,246

44,607

Booking

Holdings,

Inc.

(a)

132

350,118

Chipotle

Mexican

Grill,

Inc.

(a)

130

222,078

Choice

Hotels

International,

Inc.

130

15,235

Darden

Restaurants,

Inc.

570

88,441

Domino's

Pizza,

Inc.

168

55,418

Expedia

Group,

Inc.

(a)

518

50,261

Hilton

Grand

Vacations,

Inc.

(a)

352

15,639

Hilton

Worldwide

Holdings,

Inc.

1,023

144,110

Hyatt

Hotels

Corp.

,

Class

 A(a)

174

19,451

Marriott

International,

Inc.

,

Class

 A

1,026

170,357

Marriott

Vacations

Worldwide

Corp.

131

17,667

Planet

Fitness,

Inc.

,

Class

 A(a)

325

25,243

Starbucks

Corp.

4,918

512,111

Texas

Roadhouse,

Inc.

311

33,607

Travel

+

Leisure

Co.

309

12,113

Vail

Resorts,

Inc.

148

34,585

Wyndham

Hotels

&

Resorts,

Inc.

344

23,340

Yum!

Brands,

Inc.

1,334

176,195

2,171,301

Household

Durables

(0.5%)

D.R.

Horton,

Inc.

1,378

134,617

Helen

of

Troy

Ltd.

(a)

85

8,089

Leggett

&

Platt,

Inc.

459

14,633

Lennar

Corp.

,

Class

 A

1,192

125,291

Mohawk

Industries,

Inc.

(a)

172

17,238

Newell

Brands,

Inc.

1,433

17,827

NVR,

Inc.

(a)

14

78,011

PulteGroup,

Inc.

1,025

59,737

Tempur

Sealy

International,

Inc.

566

22,351

TopBuild

Corp.

(a)

140

29,140

Whirlpool

Corp.

173

22,839

529,773

Household

Products

(1.5%)

Church

&

Dwight

Co.,

Inc.

816

72,143

Clorox

Co.

(The)

402

63,612

Colgate-Palmolive

Co.

2,749

206,587

Kimberly-Clark

Corp.

1,120

150,326

Procter

&

Gamble

Co.

(The)

7,801

1,159,931

1,652,599

Shares

Value

Independent

Power

and

Renewable

Electricity

Producers

(0.1%)

AES

Corp.

(The)

3,069

$

73,902

Brookfield

Renewable

Corp.

807

28,205

Clearway

Energy,

Inc.

392

12,281

Ormat

Technologies,

Inc.

220

18,649

133,037

Insurance

(2.4%)

Aflac,

Inc.

2,259

145,751

Allstate

Corp.

(The)

1,042

115,464

American

Financial

Group,

Inc.

261

31,711

American

International

Group,

Inc.

2,949

148,512

Arch

Capital

Group

Ltd.

(a)

1,442

97,869

Assurant,

Inc.

214

25,695

Axis

Capital

Holdings

Ltd.

320

17,446

Brown

&

Brown,

Inc.

957

54,951

Cincinnati

Financial

Corp.

612

68,593

Enstar

Group

Ltd.

(a)

49

11,358

Erie

Indemnity

Co.

,

Class

 A

96

22,239

Everest

Re

Group

Ltd.

147

52,629

F&G

Annuities

&

Life,

Inc.

115

2,084

Fidelity

National

Financial,

Inc.

1,041

36,362

First

American

Financial

Corp.

398

22,153

Globe

Life,

Inc.

387

42,578

Hanover

Insurance

Group,

Inc.

(The)

137

17,604

Hartford

Financial

Services

Group,

Inc.

(The)

1,274

88,785

Kinsale

Capital

Group,

Inc.

86

25,813

Lincoln

National

Corp.

657

14,763

Markel

Corp.

(a)

50

63,870

Marsh

&

McLennan

Cos.,

Inc.

1,975

328,936

MetLife,

Inc.

2,637

152,788

Old

Republic

International

Corp.

1,129

28,191

Primerica,

Inc.

141

24,286

Principal

Financial

Group,

Inc.

974

72,388

Progressive

Corp.

(The)

2,330

333,330

Prudential

Financial,

Inc.

1,467

121,380

Reinsurance

Group

of

America,

Inc.

260

34,518

RenaissanceRe

Holdings

Ltd.

172

34,458

RLI

Corp.

164

21,797

Ryan

Specialty

Holdings,

Inc.

(a)

348

14,003

Selective

Insurance

Group,

Inc.

243

23,165

Travelers

Cos.,

Inc.

(The)

918

157,354

Unum

Group

812

32,123

W.

R.

Berkley

Corp.

842

52,423

Willis

Towers

Watson

plc

430

99,923

2,637,293

Interactive

Media

&

Services

(3.5%)

Alphabet,

Inc.

,

Class

 A(a)

35,158

3,646,939

IAC,

Inc.

(a)

279

14,397

Match

Group,

Inc.

(a)

952

36,547

Pinterest,

Inc.

,

Class

 A(a)

2,084

56,831

Snap,

Inc.

,

Class

 A(a)

3,413

38,260

ZoomInfo

Technologies,

Inc.

(a)

1,010

24,957

3,817,931

IT

Services

(1.7%)

Accenture

plc

,

Class

 A

2,278

651,075

Akamai

Technologies,

Inc.

(a)

543

42,517

Amdocs

Ltd.

430

41,293

Semi-Annual

Report

—

March

31,

2023

(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

IT

Services

(cont’d)

Cloudflare,

Inc.

,

Class

 A(a)

986

$

60,797

Cognizant

Technology

Solutions

Corp.

,

Class

 A

1,777

108,272

DXC

Technology

Co.

(a)

806

20,601

EPAM

Systems,

Inc.

(a)

187

55,913

Gartner,

Inc.

(a)

271

88,284

International

Business

Machines

Corp.

3,141

411,754

MongoDB,

Inc.

(a)

226

52,685

Okta,

Inc.

(a)

515

44,413

Snowflake,

Inc.

,

Class

 A(a)

954

147,193

Thoughtworks

Holding,

Inc.

(a)

422

3,106

Twilio,

Inc.

,

Class

 A(a)

598

39,845

VeriSign,

Inc.

(a)

315

66,569

1,834,317

Leisure

Products

(0.1%)

Brunswick

Corp.

384

31,488

Hasbro,

Inc.

437

23,462

Mattel,

Inc.

(a)

1,204

22,166

77,116

Life

Sciences

Tools

&

Services

(2.4%)

10X

Genomics,

Inc.

,

Class

 A(a)

374

20,865

Agilent

Technologies,

Inc.

1,244

172,095

Avantor,

Inc.

(a)

2,801

59,213

Azenta,

Inc.

(a)

225

10,039

Bio-Rad

Laboratories,

Inc.

,

Class

 A(a)

87

41,675

Bio-Techne

Corp.

663

49,188

Bruker

Corp.

420

33,113

Charles

River

Laboratories

International,

Inc.

(a)

215

43,391

Danaher

Corp.

2,635

664,125

Illumina,

Inc.

(a)

658

153,018

IQVIA

Holdings,

Inc.

(a)

779

154,935

Medpace

Holdings,

Inc.

(a)

96

18,053

Mettler-Toledo

International,

Inc.

(a)

90

137,719

PerkinElmer,

Inc.

526

70,095

Repligen

Corp.

(a)

216

36,366

Syneos

Health,

Inc.

(a)

444

15,815

Thermo

Fisher

Scientific,

Inc.

1,448

834,584

Waters

Corp.

(a)

239

74,002

West

Pharmaceutical

Services,

Inc.

308

106,713

2,695,004

Machinery

(3.4%)

AGCO

Corp.

344

46,509

Caterpillar,

Inc.

2,208

505,279

Chart

Industries,

Inc.

(a)

227

28,466

CNH

Industrial

NV

5,263

80,366

Cummins,

Inc.

751

179,399

Deere

&

Co.

1,263

521,468

Donaldson

Co.,

Inc.

669

43,713

Dover

Corp.

764

116,082

Evoqua

Water

Technologies

Corp.

(a)

667

33,163

Flowserve

Corp.

730

24,820

Fortive

Corp.

1,928

131,432

Graco,

Inc.

906

66,147

IDEX

Corp.

404

93,336

Illinois

Tool

Works,

Inc.

1,596

388,546

Shares

Value

Ingersoll

Rand,

Inc.

2,217

$

128,985

ITT,

Inc.

457

39,439

Lincoln

Electric

Holdings,

Inc.

304

51,406

Middleby

Corp.

(The)

(a)

273

40,025

Nordson

Corp.

273

60,677

Oshkosh

Corp.

365

30,361

Otis

Worldwide

Corp.

2,271

191,672

PACCAR,

Inc.

2,799

204,887

Parker-Hannifin

Corp.

694

233,260

Pentair

plc

912

50,406

Snap-on,

Inc.

279

68,882

Stanley

Black

&

Decker,

Inc.

841

67,768

Timken

Co.

(The)

364

29,746

Toro

Co.

(The)

564

62,694

Watts

Water

Technologies,

Inc.

,

Class

 A

141

23,733

Westinghouse

Air

Brake

Technologies

Corp.

987

99,746

Xylem,

Inc.

984

103,025

3,745,438

Media

(1.0%)

Altice

USA,

Inc.

,

Class

 A(a)

939

3,211

Cable

One,

Inc.

11

7,722

Charter

Communications,

Inc.

,

Class

 A(a)

358

128,024

Comcast

Corp.

,

Class

 A

14,480

548,937

Interpublic

Group

of

Cos.,

Inc.

(The)

1,519

56,568

Liberty

Broadband

Corp.

,

Class

 C(a)

473

38,644

New

York

Times

Co.

(The)

,

Class

 A

648

25,194

Omnicom

Group,

Inc.

779

73,491

Paramount

Global

,

Class

 B

2,339

52,183

Sirius

XM

Holdings,

Inc.

2,552

10,132

TEGNA,

Inc.

914

15,456

Trade

Desk,

Inc.

(The)

,

Class

 A(a)

1,545

94,106

1,053,668

Metals

&

Mining

(0.6%)

Commercial

Metals

Co.

1,049

51,296

MP

Materials

Corp.

(a)

1,327

37,408

Nucor

Corp.

1,713

264,607

Reliance

Steel

&

Aluminum

Co.

521

133,762

Steel

Dynamics,

Inc.

1,491

168,572

655,645

Multi-Utilities

(1.1%)

Ameren

Corp.

1,193

103,063

Black

Hills

Corp.

300

18,930

CMS

Energy

Corp.

1,326

81,390

Consolidated

Edison,

Inc.

1,624

155,368

Dominion

Energy,

Inc.

3,813

213,185

DTE

Energy

Co.

936

102,530

NiSource,

Inc.

1,873

52,369

Public

Service

Enterprise

Group,

Inc.

2,276

142,136

Sempra

Energy

1,430

216,159

WEC

Energy

Group,

Inc.

1,446

137,066

1,222,196

Oil,

Gas

&

Consumable

Fuels

(0.0%)(b)

Enviva,

Inc.

95

2,744

New

Fortress

Energy,

Inc.

685

20,159

22,903

Semi-Annual

Report

—

March

31,

2023

(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

Paper

&

Forest

Products

(0.0%)(b)

Louisiana-Pacific

Corp.

253

$

13,715

Passenger

Airlines

(0.2%)

Alaska

Air

Group,

Inc.

(a)

483

20,266

American

Airlines

Group,

Inc.

(a)

2,511

37,037

Delta

Air

Lines,

Inc.

(a)

2,416

84,367

Southwest

Airlines

Co.

2,220

72,239

213,909

Personal

Care

Products

(0.2%)

Coty,

Inc.

,

Class

 A(a)

1,185

14,291

Estee

Lauder

Cos.,

Inc.

(The)

,

Class

 A

767

189,035

Olaplex

Holdings,

Inc.

(a)

612

2,613

205,939

Pharmaceuticals

(3.6%)

Bristol-Myers

Squibb

Co.

8,603

596,274

Catalent,

Inc.

(a)

731

48,034

Elanco

Animal

Health,

Inc.

(a)

2,025

19,035

Eli

Lilly

&

Co.

3,051

1,047,774

Jazz

Pharmaceuticals

plc

(a)

259

37,900

Merck

&

Co.,

Inc.

9,093

967,404

Organon

&

Co.

1,052

24,743

Perrigo

Co.

plc

576

20,661

Pfizer,

Inc.

20,768

847,334

Royalty

Pharma

plc

,

Class

 A

1,588

57,216

Zoetis,

Inc.

1,947

324,059

3,990,434

Professional

Services

(1.1%)

Alight,

Inc.

,

Class

 A(a)

1,265

11,651

ASGN,

Inc.

(a)

196

16,203

Automatic

Data

Processing,

Inc.

1,427

317,693

Booz

Allen

Hamilton

Holding

Corp.

516

47,828

Broadridge

Financial

Solutions,

Inc.

400

58,628

Concentrix

Corp.

157

19,083

CoStar

Group,

Inc.

(a)

1,574

108,370

Dun

&

Bradstreet

Holdings,

Inc.

838

9,838

Equifax,

Inc.

475

96,349

ExlService

Holdings,

Inc.

(a)

103

16,668

Exponent,

Inc.

201

20,038

FTI

Consulting,

Inc.

(a)

129

25,458

Genpact

Ltd.

603

27,871

ManpowerGroup,

Inc.

201

16,589

Paychex,

Inc.

1,119

128,226

Robert

Half

International,

Inc.

415

33,437

Science

Applications

International

Corp.

183

19,665

SS&C

Technologies

Holdings,

Inc.

785

44,329

TransUnion

756

46,978

TriNet

Group,

Inc.

(a)

153

12,333

Verisk

Analytics,

Inc.

605

116,075

1,193,310

Real

Estate

Management

&

Development

(0.2%)

CBRE

Group,

Inc.

,

Class

 A(a)

1,440

104,846

Howard

Hughes

Corp.

(The)

(a)

168

13,440

Jones

Lang

LaSalle,

Inc.

(a)

215

31,280

Zillow

Group,

Inc.

,

Class

 C(a)

576

25,615

175,181

Shares

Value

Semiconductors

&

Semiconductor

Equipment

(6.9%)

Advanced

Micro

Devices,

Inc.

(a)

5,543

$

543,269

Allegro

MicroSystems,

Inc.

(a)

246

11,806

Amkor

Technology,

Inc.

374

9,731

Analog

Devices,

Inc.

1,739

342,966

Applied

Materials,

Inc.

2,916

358,172

Broadcom,

Inc.

1,418

909,704

Cirrus

Logic,

Inc.

(a)

198

21,657

Enphase

Energy,

Inc.

(a)

432

90,841

Entegris,

Inc.

516

42,317

First

Solar,

Inc.

(a)

319

69,383

GLOBALFOUNDRIES,

Inc.

(a)

253

18,262

Intel

Corp.

14,360

469,141

KLA

Corp.

477

190,404

Lam

Research

Corp.

464

245,976

Lattice

Semiconductor

Corp.

(a)

473

45,172

Marvell

Technology,

Inc.

2,952

127,822

Microchip

Technology,

Inc.

1,857

155,579

Micron

Technology,

Inc.

3,782

228,206

MKS

Instruments,

Inc.

324

28,713

Monolithic

Power

Systems,

Inc.

146

73,079

NVIDIA

Corp.

7,759

2,155,217

ON

Semiconductor

Corp.

(a)

1,494

122,986

Power

Integrations,

Inc.

200

16,928

Qorvo,

Inc.

(a)

346

35,143

QUALCOMM,

Inc.

3,862

492,714

Semtech

Corp.

(a)

244

5,890

Silicon

Laboratories,

Inc.

(a)

101

17,684

Skyworks

Solutions,

Inc.

558

65,833

SolarEdge

Technologies,

Inc.

(a)

179

54,407

Synaptics,

Inc.

(a)

130

14,449

Teradyne,

Inc.

544

58,485

Texas

Instruments,

Inc.

3,139

583,885

Universal

Display

Corp.

144

22,339

Wolfspeed,

Inc.

(a)

430

27,929

7,656,089

Software

(10.5%)

Adobe,

Inc.

(a)

1,567

603,875

Altair

Engineering,

Inc.

,

Class

 A(a)

189

13,629

ANSYS,

Inc.

(a)

301

100,173

AppLovin

Corp.

,

Class

 A(a)

443

6,977

Aspen

Technology,

Inc.

(a)

94

21,514

Autodesk,

Inc.

(a)

741

154,246

BILL

Holdings,

Inc.

(a)

341

27,669

Black

Knight,

Inc.

(a)

534

30,737

Blackline,

Inc.

(a)

198

13,296

Cadence

Design

Systems,

Inc.

(a)

940

197,485

Ceridian

HCM

Holding,

Inc.

(a)

509

37,269

Clear

Secure,

Inc.

,

Class

 A

319

8,348

Confluent,

Inc.

,

Class

 A(a)

528

12,709

Crowdstrike

Holdings,

Inc.

,

Class

 A(a)

732

100,474

Datadog,

Inc.

,

Class

 A(a)

900

65,394

DocuSign,

Inc.

(a)

701

40,868

Dolby

Laboratories,

Inc.

,

Class

 A

213

18,194

Dropbox,

Inc.

,

Class

 A(a)

962

20,798

Dynatrace,

Inc.

(a)

733

31,006

Elastic

NV

(a)

273

15,807

Semi-Annual

Report

—

March

31,

2023

(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

Software

(cont’d)

Fair

Isaac

Corp.

(a)

93

$

65,350

Five9,

Inc.

(a)

254

18,362

Fortinet,

Inc.

(a)

2,474

164,422

Gen

Digital,

Inc.

1,999

34,303

Guidewire

Software,

Inc.

(a)

286

23,466

HubSpot,

Inc.

(a)

161

69,029

Informatica,

Inc.

,

Class

 A(a)

167

2,739

Intuit,

Inc.

947

422,201

Manhattan

Associates,

Inc.

(a)

215

33,293

Microsoft

Corp.

22,632

6,524,806

NCR

Corp.

(a)

491

11,583

Oracle

Corp.

5,360

498,051

Palo

Alto

Networks,

Inc.

(a)

1,032

206,132

Paycom

Software,

Inc.

(a)

176

53,506

Paycor

HCM,

Inc.

(a)

193

5,118

Paylocity

Holding

Corp.

(a)

140

27,829

PTC,

Inc.

(a)

384

49,240

Qualtrics

International,

Inc.

,

Class

 A(a)

389

6,936

Qualys,

Inc.

(a)

127

16,512

Rapid7,

Inc.

(a)

219

10,054

RingCentral,

Inc.

,

Class

 A(a)

307

9,416

Roper

Technologies,

Inc.

360

158,648

Salesforce,

Inc.

(a)

3,349

669,063

SentinelOne,

Inc.

,

Class

 A(a)

744

12,172

ServiceNow,

Inc.

(a)

697

323,910

Smartsheet,

Inc.

,

Class

 A(a)

445

21,271

Splunk,

Inc.

(a)

517

49,570

Synopsys,

Inc.

(a)

523

202,009

Tenable

Holdings,

Inc.

(a)

390

18,529

Tyler

Technologies,

Inc.

(a)

139

49,295

VMware,

Inc.

,

Class

 A(a)

735

91,765

Workday,

Inc.

,

Class

 A(a)

691

142,719

Zoom

Video

Communications,

Inc.

,

Class

 A(a)

759

56,044

Zscaler,

Inc.

(a)

300

35,049

11,602,860

Specialty

Retail

(2.5%)

Advance

Auto

Parts,

Inc.

201

24,444

AutoNation,

Inc.

(a)

117

15,720

AutoZone,

Inc.

(a)

63

154,863

Bath

&

Body

Works,

Inc.

789

28,862

Best

Buy

Co.,

Inc.

650

50,875

Burlington

Stores,

Inc.

(a)

215

43,451

CarMax,

Inc.

(a)

533

34,261

Chewy,

Inc.

,

Class

 A(a)

350

13,083

Dick's

Sporting

Goods,

Inc.

184

26,108

Five

Below,

Inc.

(a)

177

36,457

Floor

&

Decor

Holdings,

Inc.

,

Class

 A(a)

344

33,788

GameStop

Corp.

,

Class

 A(a)

893

20,557

Gap,

Inc.

(The)

740

7,430

Home

Depot,

Inc.

(The)

3,363

992,488

Lithia

Motors,

Inc.

86

19,688

Lowe's

Cos.,

Inc.

1,994

398,740

O'Reilly

Automotive,

Inc.

(a)

204

173,192

Penske

Automotive

Group,

Inc.

86

12,196

Petco

Health

&

Wellness

Co.,

Inc.

(a)

567

5,103

Shares

Value

RH

(a)

60

$

14,613

Ross

Stores,

Inc.

1,121

118,972

TJX

Cos.,

Inc.

(The)

3,823

299,570

Tractor

Supply

Co.

357

83,909

Ulta

Beauty,

Inc.

(a)

169

92,218

Wayfair,

Inc.

,

Class

 A(a)

223

7,658

Williams-Sonoma,

Inc.

216

26,279

2,734,525

Technology

Hardware,

Storage

&

Peripherals

(7.6%)

Apple,

Inc.

48,502

7,997,980

Dell

Technologies,

Inc.

,

Class

 C

826

33,213

Hewlett

Packard

Enterprise

Co.

4,481

71,382

HP,

Inc.

3,425

100,524

NetApp,

Inc.

754

48,143

Pure

Storage,

Inc.

,

Class

 A(a)

1,054

26,888

Seagate

Technology

Holdings

plc

728

48,135

Western

Digital

Corp.

(a)

1,124

42,341

8,368,606

Textiles,

Apparel

&

Luxury

Goods

(0.8%)

Capri

Holdings

Ltd.

(a)

398

18,706

Columbia

Sportswear

Co.

124

11,190

Deckers

Outdoor

Corp.

(a)

86

38,661

Hanesbrands,

Inc.

1,256

6,607

Levi

Strauss

&

Co.

,

Class

 A

328

5,979

Lululemon

Athletica,

Inc.

(a)

361

131,473

NIKE,

Inc.

,

Class

 B

4,084

500,862

PVH

Corp.

215

19,169

Ralph

Lauren

Corp.

130

15,167

Skechers

USA,

Inc.

,

Class

 A(a)

447

21,241

Tapestry,

Inc.

790

34,057

Under

Armour,

Inc.

,

Class

 A(a)

709

6,728

VF

Corp.

1,205

27,607

837,447

Trading

Companies

&

Distributors

(0.4%)

Air

Lease

Corp.

576

22,677

Beacon

Roofing

Supply,

Inc.

(a)

165

9,710

Core

&

Main,

Inc.

,

Class

 A(a)

430

9,933

Fastenal

Co.

1,902

102,594

MSC

Industrial

Direct

Co.,

Inc.

,

Class

 A

258

21,672

SiteOne

Landscape

Supply,

Inc.

(a)

142

19,436

United

Rentals,

Inc.

367

145,244

Univar

Solutions,

Inc.

(a)

901

31,562

WESCO

International,

Inc.

141

21,790

WW

Grainger,

Inc.

148

101,944

486,562

Water

Utilities

(0.2%)

American

Water

Works

Co.,

Inc.

825

120,854

Essential

Utilities,

Inc.

1,211

52,860

173,714

Wireless

Telecommunication

Services

(0.3%)

T-Mobile

US,

Inc.

(a)

2,064

298,950

Total

Common

Stocks

(Cost

$106,334,001)

109,899,385

Semi-Annual

Report

—

March

31,

2023

(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

Short-Term

Investment

(0.2%)

Investment

Company

(0.2%

)

Morgan

Stanley

Institutional

Liquidity

Funds

-

Government

Portfolio

-

Institutional

Class

(See

Note

G)

(Cost

$182,772)

182,772

182,772

Total

Investments

(100.0%)

(Cost

$106,516,773)

(c)

110,082,157

Other

Assets

in

Excess

of

Liabilities

(0.0%)

(b)

41,365

NET

ASSETS

(100.0%)

$110,123,522

(a)

Non-income

producing

security.

(b)

Amount

is

less

than

0.05%.

(c)

At

March

31,

2023,

the

aggregate

cost

for

federal

income

tax

purposes

is

$106,516,773.

The

aggregate

gross

unrealized

appreciation

is

$4,468,769

and

the

aggregate

gross

unrealized

depreciation

is

$903,385,

resulting

in

net

unrealized

appreciation

of

$3,565,384.

Portfolio

Composition

Classification  

Percentage

of

Total

Investments

Other*

74.9

%

Software

10.5

Technology

Hardware,

Storage

&

Peripherals

7.6

Semiconductors

&

Semiconductor

Equipment

7.0

Total

Investments

100.0

%

*

Industries

and/or

investment

types

representing

less

than

5%

of

total

investments.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

US

Large-Cap

Core

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,

2023

Assets:

Investments

in

Securities

of

Unaffiliated

Issuers,

at

Value

(Cost

$106,334,001)

$

109,899,385

Investment

in

Security

of

Affiliated

Issuer,

at

Value

(Cost

$182,772)

182,772

Total

Investments

in

Securities,

at

Value

(Cost

$106,516,773)

110,082,157

Dividends

Receivable

49,871

Total

Assets

110,132,028

Liabilities:

Payable

for

Management

Fee

8,506

Total

Liabilities

8,506

Net

Assets

$

110,123,522

Net

Assets

Consist

of:

Paid-in-Capital

$

106,730,588

Total

Distributable

Earnings

3,392,934

Net

Assets

$

110,123,522

Shares

Outstanding

$0.001

Par

Value

(unlimited

shares

authorized)

2,152,000

Net

Asset

Value

Per

Share

$

51.17

Semi-Annual

Report

—

March

31,

2023

(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

Operations

Period

from

January

30,

2023

^

to

March

31,

2023

Investment

Income:

Dividends

from

Securities

of

Unaffiliated

Issuers

(Net

of

$36

of

Foreign

Taxes

Withheld)

$

116,368

Dividends

from

Security

of

Affiliated

Issuer

(Note

G)

802

Total

Investment

Income

117,170

Expenses:

Management

Fee

(Note

B)

11,403

Total

Expenses

11,403

Rebate

from

Morgan

Stanley

Affiliate

(Note

G)

(26)

Net

Expenses

11,377

Net

Investment

Income

105,793

Realized

Gain

(Loss):

Investments

Sold

(222,206)

Net

Realized

Loss

(222,206)

Change

in

Unrealized

Appreciation

(Depreciation):

Investments

3,565,384

Net

Change

in

Unrealized

Appreciation

(Depreciation)

3,565,384

Net

Realized

Loss

and

Change

in

Unrealized

Appreciation

(Depreciation)

3,343,178

Net

Increase

in

Net

Assets

Resulting

from

Operations

$

3,448,971

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(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

Changes

in

Net

Assets

Period

from

January

30,

2023

^

to

March

31,

2023

Increase

(Decrease)

in

Net

Assets:

Operations:

Net

Investment

Income

$

105,793

Net

Realized

Loss

(222,206)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

3,565,384

Net

Increase

in

Net

Assets

Resulting

from

Operations

3,448,971

Dividends

and

Distributions

to

Shareholders:

Dividends

and

Distributions

(56,037)

Total

Dividends

and

Distributions

to

Shareholders

(56,037)

Capital

Share

Transactions:

Subscribed

20,100,000

Subscribed

In-Kind

86,630,588

Net

Increase

in

Net

Assets

Resulting

from

Capital

Share

Transactions

106,730,588

Total

Increase

in

Net

Assets

110,123,522

Net

Assets:

Beginning

of

Period

–

End

of

Period

$

110,123,522

Capital

Share

Transactions:

Beginning

of

Period

–

Shares

Subscribed

402,000

Shares

Subscribed

In-Kind

1,750,000

Shares

Outstanding,

End

of

Period

Net

Increase

in

2,152,000

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Financial

Highlights

Calvert

US

Large-Cap

Core

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

Period

from

January

30,

2023

(1)

to

March

31,

2023

Net

Asset

Value,

Beginning

of

Period

$50.00‌

Income

(Loss)

from

Investment

Operations:

—

Net

Investment

Income

(2)

0.11‌

Net

Realized

and

Unrealized

Gain

1.09‌

Total

from

Investment

Operations

1.20‌

Distributions

from

and/or

in

Excess

of:

—

Net

Investment

Income

(0.03‌)

Net

Asset

Value,

End

of

Period

$51.17‌

Total

Return

(3)

2.41‌%

(4)

Ratios

to

Average

Net

Assets

and

Supplemental

Data:

$110,124

Net

Assets,

End

of

Period

(Thousands)

$110,124‌

Ratio

of

Expenses

0.15‌%

(5)(6)

Ratio

of

Net

Investment

Income

1.38‌%

(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.

17

Semi-Annual

Report

—

March

31,

2023

(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

reporting

guidance

Accounting

Standard

Codification

("ASC")

Topic

946.

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

rele-

vant

exchanges.

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

security

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

market

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

relevant

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

repu-

table

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

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

or

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

brokers/dealers;

(4)

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;

(5)

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

Standards

Board

(“FASB”)

ASC

820,

“Fair

Value

Mea-

surement”

(“ASC

820”),

defines

fair

value

as

the

price

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

18

Morgan

Stanley

ETF

Trust

that

would

be

received

to

sell

an

asset

or

pay to

transfer

a

liability

in

an orderly

transaction

between

market

par-

ticipants

at

the

measurement

date. ASC

820

establishes

a

three tier

hierarchy

to

distinguish

between

(1)

inputs

that

reflect

the

assumptions

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

participants

would

use

in

valuing

an

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances

(unobservable

inputs)

and

to

establish

classification

of

fair

value

measurements

for

disclosure

purposes.

Various

inputs

are

used

in

determin-

ing

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,

2023:

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

Aerospace

&

Defense

$

217

$

—

$

—

$

217

Air

Freight

&

Logistics

863

—

—

863

Automobile

Components

244

—

—

244

Automobiles

2,292

—

—

2,292

Banks

4,506

—

—

4,506

Beverages

2,181

—

—

2,181

Biotechnology

3,821

—

—

3,821

Broadline

Retail

3,113

—

—

3,113

Building

Products

1,097

—

—

1,097

Capital

Markets

4,152

—

—

4,152

Chemicals

1,632

—

—

1,632

Commercial

Services

&

Supplies

823

—

—

823

Communications

Equipment

1,156

—

—

1,156

Construction

&

Engineering

300

—

—

300

Construction

Materials

205

—

—

205

Consumer

Finance

789

—

—

789

Consumer

Staples

Distribution

&

Retail

2,448

—

—

2,448

Containers

&

Packaging

552

—

—

552

Distributors

171

—

—

171

Diversified

Consumer

Services

85

—

—

85

Diversified

Telecommunication

Services

1,077

—

—

1,077

Electric

Utilities

1,490

—

—

1,490

Electrical

Equipment

1,347

—

—

1,347

Electronic

Equipment,

Instruments

&

Components

1,121

—

—

1,121

Energy

Equipment

&

Services

238

—

—

238

Entertainment

1,711

—

—

1,711

Financial

Services

3,347

—

—

3,347

Food

Products

1,726

—

—

1,726

Gas

Utilities

121

—

—

121

Ground

Transportation

780

—

—

780

Health

Care

Equipment

&

Supplies

4,248

—

—

4,248

Health

Care

Providers

&

Services

1,728

—

—

1,728

Health

Care

Technology

119

—

—

119

Hotels,

Restaurants

&

Leisure

2,171

—

—

2,171

Household

Durables

530

—

—

530

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

19

Morgan

Stanley

ETF

Trust

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

indemnifications.

The

Trust’s

max-

imum

exposure

under

these

arrangements

is

unknown.

However,

the Trust

has

not

had

prior

claims

or

losses

pursuant

to

these

contracts

and

expects

the

risk

of

loss

to

be

remote.

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,

Income

and

Expenses:

Security

transactions

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

deter-

mined

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

dividends)

net

of

applicable

withholding

taxes.

Non-cash

dividends

received

in

the

form

of

stock,

if

any,

are

recognized

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

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

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

ongo-

ing

services

to

shareholders

of

the

Fund

and

the

maintenance

of

shareholder

accounts

in

an

amount

up

to

0.25%

of

its

aver-

age

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)

Common

Stocks

(cont’d)

Household

Products

$

1,653

$

—

$

—

$

1,653

Independent

Power

and

Renewable

Electricity

Producers

133

—

—

133

Insurance

2,637

—

—

2,637

Interactive

Media

&

Services

3,818

—

—

3,818

IT

Services

1,834

—

—

1,834

Leisure

Products

77

—

—

77

Life

Sciences

Tools

&

Services

2,695

—

—

2,695

Machinery

3,745

—

—

3,745

Media

1,054

—

—

1,054

Metals

&

Mining

656

—

—

656

Multi-Utilities

1,222

—

—

1,222

Oil,

Gas

&

Consumable

Fuels

23

—

—

23

Paper

&

Forest

Products

14

—

—

14

Passenger

Airlines

214

—

—

214

Personal

Care

Products

206

—

—

206

Pharmaceuticals

3,990

—

—

3,990

Professional

Services

1,193

—

—

1,193

Real

Estate

Management

&

Development

175

—

—

175

Semiconductors

&

Semiconductor

Equipment

7,656

—

—

7,656

Software

11,603

—

—

11,603

Specialty

Retail

2,734

—

—

2,734

Technology

Hardware,

Storage

&

Peripherals

8,369

—

—

8,369

Textiles,

Apparel

&

Luxury

Goods

837

—

—

837

Trading

Companies

&

Distributors

487

—

—

487

Water

Utilities

174

—

—

174

Wireless

Telecommunication

Services

299

—

—

299

Total

Common

Stocks

109,899

—

—

109,899

Short-Term

Investment

Investment

Company

183

—

—

183

Total

Assets

$110,082

$—

$—

$110,082

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

20

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

securi-

ties

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

Funds’

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

you

buy

or

sell

Fund

shares

on

the

secondary

market,

you

will

pay

or

receive

the

market

price,

which

may

be

higher

or

lower

than

NAV.

Your

transaction

will

be

priced

at

NAV

if

you

purchase

or

redeem

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.

Transaction

fees

assessed

during

the

period

are

in-

cluded

in

the

proceeds

or

cost

from

shares

issued

or

redeemed

on

the

Statements

of

Changes

in

Net

Assets.

G.

Security

Transactions

and

Transactions

with

Affil-

iates:

For

the

period ended

March

31,

2023 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 $22,939,564

and

$1,614,751,

respectively.

There

were

no

purchases

and

sales

of

long-term

U.S.

Government

securities

for

the

period ended

March

31,

2023.

Purchase

and

Sales

related

to

In-Kind

transactions

were

$85,231,432.

There

were

no

sales

related

to

In-Kind

transac-

tions

for

the

period

ended

March,

31

2023.

The

Fund

invests

in

the

Institutional

Class

of

the

Morgan

Stanley

Institutional

Liquidity

Funds

—

Government

Portfolio

(the

“Liquidity

Funds”),

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

Funds.

For

the

period ended

March

31,

2023, management

fees

paid

were

reduced

by $26 relating

to

the

Fund’s

investment

in

the

Liquidity

Funds. 

A

summary

of

the

Fund’s

transactions

in

shares

of

affiliated

investments

during

the

period ended

March

31,

2023 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

income.

Accordingly,

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

Affiliated

Investment

Company

Value

January

30,

2023

Purchases

at

Cost

Proceeds

from

Sales

Dividend

Income

Liquidity

Funds

$

–

$

626,403

$

443,631

$

802

Affiliated

Investment

Company

(cont'd)

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

March

31,

2023

Liquidity

Funds  

$

–

$

–

$

182,772

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

21

Morgan

Stanley

ETF

Trust

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:

An

investment

in

the

Fund

is

based

on

the

values

of

the

Fund's

investments,

which

may

change

due

to

economic

and

other

events

that

affect

markets

generally,

as

well

as

those

that

affect

particular

regions,

countries,

indus-

tries,

companies

or

governments.

Social,

political,

economic

and

other

conditions

and

events,

such

as

war,

natural

disasters,

health

emergencies

(e.g.,

epidemics

and

pandemics),

terrorism,

conflicts,

social

unrest,

recessions,

inflation,

rapid

interest

rate

changes

and

supply

chain

disruptions,

may

occur

and

could

significantly

impact

issuers,

industries,

governments

and

other

systems,

including

the

financial

markets

and

global

economy.

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

be

sudden

and

significant

and

may

negatively

impact

broad

segments

of

businesses

and

populations

and

have

a

significant

and

rapid

negative

impact

on

the

performance

of

and/or

income

or

yield

from

the

Fund's

investments

and

exacerbate

pre-existing

risks

to

the

Fund.

For

example,

the

extent

of

the

impact

of

a

public

health

emergency

depends

on

future

developments,

including

(i)

the

duration

and

spread

of

the

public

health

emergency,

(ii)

the

restrictions

and

advisories,

(iii)

the

effects

on

the

financial

markets,

(iv)

government

and

regulatory

responses,

and

(v)

the

effects

on

the

economy

overall

as

a

result

of

developments

such

as

disruption

to

consumer

demand,

economic

output

and

supply

chains.

The

occurrence,

duration

and

extent

of

these

or

other

types

of

adverse

economic

and

market

conditions

and

uncertainty

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

developments

and

the

extent

to

which

the

associated

conditions

impact

the

Fund

will

also

depend

on

other

future

developments,

which

are

highly

un-

certain,

difficult

to

accurately

predict

and

subject

to

change

at

any

time.

The

financial

performance

of

the

Fund's

investments

(and,

in

turn,

the

Fund's

investment

results)

as

well

as

their

liquidity

may

be

adversely

affected

because

of

these

and

similar

types

of

factors

and

developments.

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

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

22

Morgan

Stanley

ETF

Trust

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.

To

the

extent

that

these

intermediaries

exit

the

business

or

are

unable

to

or

choose

not

to

proceed

with

creation

and/or

redemption

orders

with

respect

to

the

Fund

and

no

other

authorized

participant

creates

or

redeems,

shares

may

trade

at

a

discount

to

net

asset

value

(“NAV”)

and

possibly

face

trading

halts

and/or

delisting. 

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

other

factors,

may

result

in

the

shares

trading

significantly

above

(at

a

premium)

or

below

(at

a

discount)

to

NAV

or

to

the

intraday

value

of

the

Fund’s

holdings

(and,

as

a

result,

an

investor

may

pay

more

for,

or

receive

less

than,

the

underlying

value

of

the

shares,

respectively).

Buying

or

selling

shares

in

the

secondary

market

may

require

paying

brokerage

commissions

or

other

charges

imposed

by

brokers

as

determined

by

that

broker.

Brokerage

commissions

are

often

a

fixed

amount

and

may

be

a

significant

proportional

cost

when

seeking

to

buy

or

sell

relatively

small

amounts

of

shares.

In

addition,

the

market

price

of

shares,

like

the

price

of

any

exchange-traded

security,

includes

a

“bid-ask

spread”

charged

by

the

market

makers

or

other

participants

that

trade

the

particular

security.

The

spread

of

a

Fund’s

shares

varies

over

time

based

on

the

Fund’s

trading

volume

and

market

liquidity

and

may

increase

if

the

Fund’s

trading

volume,

the

spread

of

the

Fund’s

underlying

securities,

or

market

liquidity

decrease. 

Large

Shareholder

Transaction

Risk:

The

Fund

may

experience

adverse

effects

when

certain

shareholders

purchase

or

redeem

large

amounts

of

shares

of

a

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

a

Fund’s

performance

to

the

extent

that

a

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

a

Fund’s

current

expenses

being

allocated

over

a

smaller

asset

base,

leading

to

an

increase

in

a

Fund’s

expense

ratio.

Although

large

shareholder

transactions

may

be

more

frequent

under

certain

circumstanc-

es,

a

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. 

23

Semi-Annual

Report

—

March

31,

2023

(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

under

the

investment

management

agreement

(the

“Management

Agreement”),

including

portfolio

management,

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,

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

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,

2023

(unaudited)

Investment

Advisory

Agreement

Approval

(cont’d)

24

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.

As

part

of

the

Board’s

review,

the

Board

received

information

from

management

on

the

impact

of

the

COVID-19

pandemic

on

the

firm

generally

and

the

Adviser

and

the

Fund

in

particular

including,

among

other

information,

the

pandemic’s

current

and

expected

impact

on

the

Fund’s

performance

and

operations.

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.

25

Semi-Annual

Report

—

March

31,

2023

(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

1-2,

2023,

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,

2022,

through

December

31,

2022,

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

portfolios

of

the

Trust

during

that

period.

However,

during

the

period

ended

March

31,

2023,

the

Program

applied

to

the

Fund.

26

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

April

2021

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

investment

management

affiliates’

everyday

business

purposes

—

information

about

your

transactions,

experiences,

and

creditworthiness

Yes

Yes

For

our

affiliates’

everyday

business

purposes

—

information

about

your

transactions

and

experiences

Yes

No

For

our

affiliates’

everyday

business

purposes

—

information

about

your

creditworthiness

No

We

don’t

share

For

our

investment

management

affiliates

to

market

to

you

Yes

Yes

For

our

affiliates

to

market

to

you

No

We

don’t

share

For

non-affiliates

to

market

to

you

No

We

don’t

share

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

27

April

2021

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

Investment

Management

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.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

28

April

2021

Morgan

Stanley

ETF

Trust

Definitions

Investment

Management

Affiliates

MSIM

Investment

Management

Affiliates

include

registered

investment

advisers,

registered

broker-dealers,

and

registered

and

unregistered

funds

in

the

Investment

Management

Division.

Investment

Management

Affiliates

does

not

include

entities

associated

with

Morgan

Stanley

Wealth

Management,

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

Affiliates

Companies

related

by

common

ownership

or

control.

They

can

be

financial

and

non-financial

companies.

Our

affiliates

include

companies

with

a

Morgan

Stanley

name

and

financial

companies

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

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

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,

2023

(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

Joseph

J.

Kearns

Michael

F.

Klein

Patricia

A

Maleski

W.

Allen

Reed,

Chair

of

the

Board

Adviser

Morgan

Stanley

Investment

Management

Inc.

522

Fifth

Avenue

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

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

Perkins

Coie

LLP

1155

Avenue

of

the

Americas

22nd

Floor

New

York,

New

York

10036

Independent

Registered

Public

Accounting

Firm

Ernst

&

Young

LLP

200

Clarendon

Street

Boston,

MA

02116

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.

The

Fund

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

are

available

on

the

Fund's

public

website,

www.

calvert.com.

Proxy

Voting

Policies

and

Procedures

and

Proxy

Voting

Record

You

may

obtain

a

copy

of

the

Trust’s

Proxy

Voting

Policy

and

Procedures

and

information

regarding

how

the

Trust

voted

proxies

relating

to

portfolio

securities

during

the

most

recent

twelve-month

period

ended

June

30,

without

charge,

on

our

web

site

at

www.calvert.com.

This

information

is

also

available

on

the

SEC’s

website

at

www.sec.gov.

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,

which

describes

in

detail

the

fund’s

investment

policies,

risks,

fees

and

expenses.

Please

read

the

prospectus

carefully

before

you

invest

or

send

money.

For

additional

informa-

tion,

including

information

regarding

the

investments

comprising

the

Fund,

please

visit

our

website

at

www.morganstanley.com/im/shareholderreports.

ETFCALUSLGCAPCRISAN

5648320

EXP

05.31.24

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.

522

Fifth

Avenue

New

York,

New

York

10036 

©

2023

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,

2023

Morgan

Stanley

ETF

Trust

Semi-Annual

Report

—

March

31,

2023

(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.calvert.com

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

Performance

Summary

.....................................................................................

3

Portfolio

of

Investments

.....................................................................................

4

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

....................................................................

20

Liquidity

Risk

Management

Program

.........................................................................

22

U.S.

Customer

Privacy

Notice

...............................................................................

23

Trustees

and

Officers

Information

...........................................................................

26

2

Semi-Annual

Report

—

March

31,

2023

(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

Di-

versity,

Equity

and

Inclusion

Index

ETF (the

“Fund”)

performed

during

the

period

beginning

January

30,

2023

(when

the

Fund

commenced

operations)

and

ended

March

31,

2023.

Morgan

Stanley

Investment

Management

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

challenges

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

2023

3

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Performance

Summary

Calvert

US

Large-Cap

Diversity,

Equity

and

Inclusion

Index

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/shareholderreports.

Investment

return

and

principal

value

will

fluctuate

so

that

Fund

shares,

when

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

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)

Cumulative

Total

Return

for

the

period

Ended

March

31,

2023

Since

Inception

(3)

Calvert

US

Large-Cap

Diversity,

Equity

and

Inclusion

Index

ETF

-

NAV

(4)

4.42%

Calvert

US

Large-Cap

Diversity,

Equity

and

Inclusion

Index

ETF

-

Market

Price

(4)

4.40%

Russell

1000

®

Index

2.27%

Calvert

US

Large-Cap

Diversity

Research

Index

4.47%

(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.

Expense

Example

Beginning

Account

Value

(1/30/23)

Actual

Ending

Account

Value

(3/31/23)

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

$1,044.20

$1,008.12

$0.24

$0.23

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

61/365

(to

reflect

the

actual

days

in

the

period).

**

Annualized.

^

The

Fund

commenced

operations

on

January

30,

2023.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

Calvert

US

Large-Cap

Diversity,

Equity

and

Inclusion

Index

ETF

4

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Shares

Value

Common

Stocks

(99.7%)

Aerospace

&

Defense

(0.1%)

Curtiss-Wright

Corp.

42

$

7,403

Hexcel

Corp.

92

6,279

Woodward,

Inc.

61

5,940

19,622

Air

Freight

&

Logistics

(0.8%)

CH

Robinson

Worldwide,

Inc.

125

12,421

Expeditors

International

of

Washington,

Inc.

172

18,941

United

Parcel

Service,

Inc.

,

Class

 B

792

153,640

185,002

Automobile

Components

(0.1%)

Gentex

Corp.

257

7,204

Lear

Corp.

64

8,927

16,131

Automobiles

(0.3%)

General

Motors

Co.

1,510

55,387

Thor

Industries,

Inc.

56

4,460

59,847

Banks

(3.6%)

Bank

OZK

133

4,549

BOK

Financial

Corp.

31

2,617

Citigroup,

Inc.

2,105

98,703

Citizens

Financial

Group,

Inc.

516

15,671

Commerce

Bancshares,

Inc.

132

7,702

East

West

Bancorp,

Inc.

148

8,214

First

Citizens

BancShares

,

Inc.

,

Class

 A

11

10,704

First

Financial

Bankshares

,

Inc.

141

4,498

First

Republic

Bank

191

2,672

Glacier

Bancorp,

Inc.

121

5,083

Hancock

Whitney

Corp.

87

3,167

Huntington

Bancshares,

Inc.

1,523

17,058

JPMorgan

Chase

&

Co.

3,165

412,431

KeyCorp

991

12,407

M&T

Bank

Corp.

180

21,523

Pinnacle

Financial

Partners,

Inc.

78

4,303

PNC

Financial

Services

Group,

Inc.

(The)

432

54,907

Popular,

Inc.

72

4,134

Regions

Financial

Corp.

1,000

18,560

ServisFirst

Bancshares,

Inc.

54

2,950

Truist

Financial

Corp.

1,429

48,729

U.S.

Bancorp

1,449

52,236

UMB

Financial

Corp.

46

2,655

United

Bankshares

,

Inc.

145

5,104

Webster

Financial

Corp.

182

7,174

Western

Alliance

Bancorp

105

3,732

Wintrust

Financial

Corp.

62

4,523

Zions

Bancorp

NA

152

4,549

840,555

Beverages

(2.6%)

Coca-Cola

Co.

(The)

4,234

262,635

Keurig

Dr

Pepper,

Inc.

986

34,786

Monster

Beverage

Corp.

(a)

798

43,100

PepsiCo,

Inc.

1,490

271,627

612,148

Biotechnology

(1.5%)

Alkermes

plc

(a)

178

5,018

Shares

Value

Alnylam

Pharmaceuticals,

Inc.

(a)

133

$

26,643

Biogen,

Inc.

(a)

156

43,373

Biohaven

Ltd.

(a)

47

642

BioMarin

Pharmaceutical,

Inc.

(a)

195

18,962

Exact

Sciences

Corp.

(a)

193

13,087

Exelixis

,

Inc.

(a)

345

6,696

Gilead

Sciences,

Inc.

1,353

112,258

Halozyme

Therapeutics,

Inc.

(a)

140

5,347

Incyte

Corp.

(a)

200

14,454

Ionis

Pharmaceuticals,

Inc.

(a)

154

5,504

Neurocrine

Biosciences,

Inc.

(a)

103

10,426

Sarepta

Therapeutics,

Inc.

(a)

91

12,542

Vertex

Pharmaceuticals,

Inc.

(a)

278

87,589

362,541

Broadline

Retail

(0.2%)

eBay,

Inc.

582

25,823

Etsy,

Inc.

(a)

133

14,807

Kohl's

Corp.

105

2,472

Nordstrom,

Inc.

123

2,001

45,103

Building

Products

(0.5%)

Fortune

Brands

Innovations,

Inc.

140

8,222

Johnson

Controls

International

plc

741

44,623

Masterbrand,

Inc.

(a)

141

1,134

Owens

Corning

98

9,388

Simpson

Manufacturing

Co.,

Inc.

46

5,044

Trane

Technologies

plc

248

45,627

Trex

Co.,

Inc.

(a)

120

5,840

UFP

Industries,

Inc.

66

5,245

125,123

Capital

Markets

(2.4%)

Ares

Management

Corp.

150

12,516

Bank

of

New

York

Mellon

Corp.

(The)

871

39,578

Blackstone,

Inc.

755

66,319

Evercore

,

Inc.

,

Class

 A

38

4,384

FactSet

Research

Systems,

Inc.

41

17,019

Houlihan

Lokey

,

Inc.

54

4,724

Interactive

Brokers

Group,

Inc.

,

Class

 A

109

8,999

Intercontinental

Exchange,

Inc.

599

62,470

Invesco

Ltd.

490

8,036

Jefferies

Financial

Group,

Inc.

188

5,967

MarketAxess

Holdings,

Inc.

40

15,652

Moody's

Corp.

173

52,942

Morningstar,

Inc.

27

5,482

MSCI,

Inc.

84

47,014

Nasdaq,

Inc.

367

20,064

Raymond

James

Financial,

Inc.

209

19,493

S&P

Global,

Inc.

349

120,325

SEI

Investments

Co.

119

6,848

State

Street

Corp.

372

28,157

Stifel

Financial

Corp.

113

6,677

Virtu

Financial,

Inc.

,

Class

 A

109

2,060

554,726

Chemicals

(0.8%)

Ashland,

Inc.

58

5,957

Avient

Corp.

93

3,828

Axalta

Coating

Systems

Ltd.

(a)

241

7,300

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

(cont’d)

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

Chemicals

(cont’d)

Cabot

Corp.

61

$

4,675

Celanese

Corp.

119

12,958

Eastman

Chemical

Co.

128

10,795

Ecolab,

Inc.

273

45,190

Element

Solutions,

Inc.

243

4,692

FMC

Corp.

135

16,488

Huntsman

Corp.

198

5,417

International

Flavors

&

Fragrances,

Inc.

274

25,197

Livent

Corp.

(a)

182

3,953

PPG

Industries,

Inc.

255

34,063

180,513

Commercial

Services

&

Supplies

(0.7%)

Clean

Harbors,

Inc.

(a)

55

7,841

Copart

,

Inc.

(a)

470

35,349

Republic

Services,

Inc.

223

30,154

Rollins,

Inc.

265

9,945

Stericycle,

Inc.

(a)

95

4,143

Tetra

Tech,

Inc.

57

8,374

Waste

Management,

Inc.

424

69,184

164,990

Communications

Equipment

(1.5%)

Arista

Networks,

Inc.

(a)

256

42,972

Ciena

Corp.

(a)

160

8,403

Cisco

Systems,

Inc.

4,449

232,571

Juniper

Networks,

Inc.

352

12,116

Motorola

Solutions,

Inc.

181

51,790

347,852

Construction

&

Engineering

(0.2%)

EMCOR

Group,

Inc.

51

8,292

MasTec

,

Inc.

(a)

66

6,233

Quanta

Services,

Inc.

155

25,829

Valmont

Industries,

Inc.

22

7,024

WillScot

Mobile

Mini

Holdings

Corp.

(a)

218

10,220

57,598

Construction

Materials

(0.1%)

Vulcan

Materials

Co.

144

24,705

Consumer

Finance

(0.8%)

American

Express

Co.

653

107,712

Capital

One

Financial

Corp.

406

39,041

Credit

Acceptance

Corp.

(a)

7

3,052

Discover

Financial

Services

283

27,972

SLM

Corp.

241

2,986

Synchrony

Financial

464

13,493

194,256

Consumer

Staples

Distribution

&

Retail

(1.9%)

BJ's

Wholesale

Club

Holdings,

Inc.

(a)

146

11,106

Casey's

General

Stores,

Inc.

40

8,658

Dollar

Tree,

Inc.

(a)

240

34,452

Kroger

Co.

(The)

771

38,064

Sysco

Corp.

550

42,477

Target

Corp.

498

82,484

Walmart,

Inc.

1,522

224,419

441,660

Containers

&

Packaging

(0.4%)

AptarGroup,

Inc.

72

8,510

Shares

Value

Avery

Dennison

Corp.

87

$

15,567

Ball

Corp.

342

18,848

Berry

Global

Group,

Inc.

131

7,716

Crown

Holdings,

Inc.

129

10,669

Packaging

Corp.

of

America

98

13,605

Sealed

Air

Corp.

155

7,116

Silgan

Holdings,

Inc.

92

4,938

Westrock

Co.

266

8,105

95,074

Distributors

(0.2%)

Genuine

Parts

Co.

151

25,264

LKQ

Corp.

291

16,517

41,781

Diversified

Consumer

Services

(0.1%)

ADT,

Inc.

195

1,410

Bright

Horizons

Family

Solutions,

Inc.

(a)

62

4,773

H&R

Block,

Inc.

169

5,957

Service

Corp.

International

164

11,280

23,420

Diversified

Telecommunication

Services

(1.4%)

AT&T,

Inc.

7,729

148,783

Iridium

Communications,

Inc.

122

7,556

Lumen

Technologies,

Inc.

1,028

2,724

Verizon

Communications,

Inc.

4,557

177,222

336,285

Electric

Utilities

(1.2%)

Alliant

Energy

Corp.

275

14,685

Exelon

Corp.

1,077

45,115

Hawaiian

Electric

Industries,

Inc.

120

4,608

IDACORP,

Inc.

54

5,850

NextEra

Energy,

Inc.

2,147

165,491

NRG

Energy,

Inc.

247

8,470

Portland

General

Electric

Co.

98

4,791

Xcel

Energy,

Inc.

593

39,992

289,002

Electrical

Equipment

(1.1%)

AMETEK,

Inc.

249

36,187

Eaton

Corp.

plc

430

73,676

Emerson

Electric

Co.

618

53,853

Generac

Holdings,

Inc.

(a)

68

7,345

Hubbell,

Inc.

58

14,112

nVent

Electric

plc

179

7,686

Plug

Power,

Inc.

(a)

543

6,364

Regal

Rexnord

Corp.

70

9,851

Rockwell

Automation,

Inc.

124

36,388

Sensata

Technologies

Holding

plc

167

8,353

Sunrun

,

Inc.

(a)

215

4,332

258,147

Electronic

Equipment,

Instruments

&

Components

(0.8%)

Amphenol

Corp.

,

Class

 A

641

52,383

Arrow

Electronics,

Inc.

(a)

63

7,867

Avnet,

Inc.

100

4,520

CDW

Corp.

146

28,454

Cognex

Corp.

183

9,068

Coherent

Corp.

(a)

130

4,950

IPG

Photonics

Corp.

(a)

32

3,946

Semi-Annual

Report

—

March

31,

2023

(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

Electronic

Equipment,

Instruments

&

Components

(cont’d)

Keysight

Technologies,

Inc.

(a)

192

$

31,004

Littelfuse

,

Inc.

26

6,970

Novanta

,

Inc.

(a)

38

6,045

Rogers

Corp.

(a)

20

3,269

Trimble,

Inc.

(a)

269

14,101

Zebra

Technologies

Corp.

,

Class

 A(a)

56

17,808

190,385

Energy

Equipment

&

Services

(0.1%)

Baker

Hughes

Co.

1,092

31,515

Entertainment

(1.2%)

Electronic

Arts,

Inc.

279

33,605

Liberty

Media

Corp-Liberty

Formula

One

,

Class

 A(a)

26

1,755

Roku,

Inc.

(a)

133

8,754

Walt

Disney

Co.

(The)

(a)

1,982

198,458

Warner

Bros

Discovery,

Inc.

(a)

2,400

36,240

278,812

Financial

Services

(3.6%)

Equitable

Holdings,

Inc.

382

9,699

Fiserv,

Inc.

(a)

684

77,312

Jack

Henry

&

Associates,

Inc.

78

11,756

Mastercard

,

Inc.

,

Class

 A

916

332,884

MGIC

Investment

Corp.

323

4,335

TFS

Financial

Corp.

57

720

Visa,

Inc.

,

Class

 A

1,761

397,035

Voya

Financial,

Inc.

105

7,503

Western

Union

Co.

(The)

414

4,616

WEX,

Inc.

(a)

46

8,459

854,319

Food

Products

(1.4%)

Bunge

Ltd.

163

15,570

Campbell

Soup

Co.

217

11,931

Conagra

Brands,

Inc.

515

19,343

Darling

Ingredients,

Inc.

(a)

174

10,162

General

Mills,

Inc.

638

54,523

Hershey

Co.

(The)

159

40,451

Hormel

Foods

Corp.

316

12,602

Kraft

Heinz

Co.

(The)

864

33,411

Lamb

Weston

Holdings,

Inc.

152

15,887

Mondelez

International,

Inc.

,

Class

 A

1,477

102,976

Post

Holdings,

Inc.

(a)

57

5,123

321,979

Gas

Utilities

(0.1%)

New

Jersey

Resources

Corp.

105

5,586

Southwest

Gas

Holdings,

Inc.

72

4,496

UGI

Corp.

226

7,856

17,938

Ground

Transportation

(0.9%)

Avis

Budget

Group,

Inc.

(a)

28

5,454

JB

Hunt

Transport

Services,

Inc.

90

15,791

Knight-Swift

Transportation

Holdings,

Inc.

165

9,336

Old

Dominion

Freight

Line,

Inc.

103

35,107

RXO,

Inc.

(a)

128

2,514

Schneider

National,

Inc.

,

Class

 B

64

1,712

Union

Pacific

Corp.

662

133,234

Shares

Value

XPO,

Inc.

(a)

124

$

3,956

207,104

Health

Care

Equipment

&

Supplies

(3.8%)

Abbott

Laboratories

1,870

189,356

Align

Technology,

Inc.

(a)

78

26,063

Baxter

International,

Inc.

552

22,389

Becton

Dickinson

&

Co.

308

76,242

Boston

Scientific

Corp.

(a)

1,545

77,296

Cooper

Cos.,

Inc.

(The)

54

20,161

DENTSPLY

SIRONA,

Inc.

234

9,192

Dexcom

,

Inc.

(a)

413

47,982

Edwards

Lifesciences

Corp.

(a)

653

54,023

Globus

Medical,

Inc.

,

Class

 A(a)

80

4,531

ICU

Medical,

Inc.

(a)

21

3,464

IDEXX

Laboratories,

Inc.

(a)

89

44,507

Insulet

Corp.

(a)

75

23,922

Integra

LifeSciences

Holdings

Corp.

(a)

80

4,593

iRhythm

Technologies,

Inc.

(a)

31

3,845

Lantheus

Holdings,

Inc.

(a)

72

5,944

Medtronic

plc

1,443

116,335

Penumbra,

Inc.

(a)

39

10,869

Stryker

Corp.

382

109,050

Tandem

Diabetes

Care,

Inc.

(a)

71

2,883

Teleflex,

Inc.

51

12,919

Zimmer

Biomet

Holdings,

Inc.

228

29,458

895,024

Health

Care

Providers

&

Services

(1.0%)

Centene

Corp.

(a)

608

38,432

Chemed

Corp.

16

8,604

CVS

Health

Corp.

1,389

103,216

DaVita,

Inc.

(a)

62

5,029

Ensign

Group,

Inc.

(The)

58

5,541

Guardant

Health,

Inc.

(a)

106

2,485

Laboratory

Corp.

of

America

Holdings

96

22,024

Molina

Healthcare,

Inc.

(a)

63

16,852

Option

Care

Health,

Inc.

(a)

170

5,401

Premier,

Inc.

,

Class

 A

129

4,176

Quest

Diagnostics,

Inc.

120

16,978

R1

RCM,

Inc.

(a)

169

2,535

231,273

Health

Care

Technology

(0.1%)

Veeva

Systems,

Inc.

,

Class

 A(a)

153

28,120

Hotels,

Restaurants

&

Leisure

(1.9%)

Airbnb,

Inc.

,

Class

 A(a)

406

50,506

Aramark

275

9,845

Chipotle

Mexican

Grill,

Inc.

(a)

30

51,249

Darden

Restaurants,

Inc.

133

20,636

Domino's

Pizza,

Inc.

38

12,535

Expedia

Group,

Inc.

(a)

158

15,331

Hilton

Grand

Vacations,

Inc.

(a)

91

4,043

Hilton

Worldwide

Holdings,

Inc.

284

40,007

Marriott

International,

Inc.

,

Class

 A

285

47,321

Marriott

Vacations

Worldwide

Corp.

38

5,125

Planet

Fitness,

Inc.

,

Class

 A(a)

89

6,913

Starbucks

Corp.

1,215

126,518

Travel

+

Leisure

Co.

86

3,371

Semi-Annual

Report

—

March

31,

2023

(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

Hotels,

Restaurants

&

Leisure

(cont’d)

Vail

Resorts,

Inc.

43

$

10,048

Yum!

Brands,

Inc.

305

40,285

443,733

Household

Durables

(0.4%)

D.R.

Horton,

Inc.

328

32,042

Leggett

&

Platt,

Inc.

143

4,559

Lennar

Corp.

,

Class

 A

282

29,641

Mohawk

Industries,

Inc.

(a)

56

5,612

Newell

Brands,

Inc.

429

5,337

PulteGroup,

Inc.

243

14,162

TopBuild

Corp.

(a)

35

7,285

98,638

Household

Products

(0.7%)

Church

&

Dwight

Co.,

Inc.

264

23,340

Clorox

Co.

(The)

135

21,362

Colgate-Palmolive

Co.

900

67,635

Kimberly-Clark

Corp.

366

49,125

161,462

Independent

Power

and

Renewable

Electricity

Producers

(0.1%)

AES

Corp.

(The)

730

17,578

Clearway

Energy,

Inc.

91

2,851

Ormat

Technologies,

Inc.

53

4,493

24,922

Insurance

(2.0%)

Aflac,

Inc.

610

39,357

Allstate

Corp.

(The)

284

31,470

American

Financial

Group,

Inc.

74

8,991

American

International

Group,

Inc.

794

39,986

Arch

Capital

Group

Ltd.

(a)

392

26,605

Axis

Capital

Holdings

Ltd.

86

4,689

Cincinnati

Financial

Corp.

168

18,829

Erie

Indemnity

Co.

,

Class

 A

27

6,255

Everest

Re

Group

Ltd.

42

15,037

F&G

Annuities

&

Life,

Inc.

20

362

Fidelity

National

Financial,

Inc.

272

9,501

Globe

Life,

Inc.

104

11,442

Hanover

Insurance

Group,

Inc.

(The)

38

4,883

Hartford

Financial

Services

Group,

Inc.

(The)

344

23,973

Kinsale

Capital

Group,

Inc.

24

7,204

Lincoln

National

Corp.

182

4,090

Markel

Corp.

(a)

15

19,161

MetLife,

Inc.

709

41,080

Old

Republic

International

Corp.

298

7,441

Primerica,

Inc.

39

6,717

Principal

Financial

Group,

Inc.

260

19,323

Progressive

Corp.

(The)

633

90,557

Prudential

Financial,

Inc.

396

32,765

Selective

Insurance

Group,

Inc.

64

6,101

475,819

Interactive

Media

&

Services

(5.4%)

Alphabet,

Inc.

,

Class

 A(a)

12,080

1,253,058

Snap,

Inc.

,

Class

 A(a)

1,047

11,737

1,264,795

IT

Services

(0.5%)

Akamai

Technologies,

Inc.

(a)

169

13,233

Shares

Value

Amdocs

Ltd.

131

$

12,580

DXC

Technology

Co.

(a)

250

6,390

Gartner,

Inc.

(a)

77

25,084

MongoDB,

Inc.

(a)

72

16,785

Twilio

,

Inc.

,

Class

 A(a)

189

12,593

VeriSign,

Inc.

(a)

101

21,344

108,009

Leisure

Products

(0.0%)(b)

Mattel,

Inc.

(a)

369

6,793

Life

Sciences

Tools

&

Services

(2.5%)

Agilent

Technologies,

Inc.

320

44,269

Bio-Rad

Laboratories,

Inc.

,

Class

 A(a)

23

11,017

Bio-

Techne

Corp.

169

12,538

Bruker

Corp.

109

8,594

Charles

River

Laboratories

International,

Inc.

(a)

54

10,898

Danaher

Corp.

721

181,721

Illumina,

Inc.

(a)

171

39,766

PerkinElmer,

Inc.

138

18,390

Repligen

Corp.

(a)

57

9,597

Syneos

Health,

Inc.

(a)

112

3,989

Thermo

Fisher

Scientific,

Inc.

417

240,346

581,125

Machinery

(2.0%)

Cummins,

Inc.

151

36,071

Deere

&

Co.

321

132,534

Dover

Corp.

151

22,943

Evoqua

Water

Technologies

Corp.

(a)

132

6,563

Flowserve

Corp.

143

4,862

Fortive

Corp.

382

26,041

Graco

,

Inc.

183

13,361

IDEX

Corp.

82

18,944

Illinois

Tool

Works,

Inc.

330

80,339

Ingersoll

Rand,

Inc.

438

25,483

Lincoln

Electric

Holdings,

Inc.

62

10,484

Oshkosh

Corp.

72

5,989

PACCAR,

Inc.

556

40,699

Stanley

Black

&

Decker,

Inc.

167

13,457

Westinghouse

Air

Brake

Technologies

Corp.

195

19,707

Xylem,

Inc.

197

20,626

478,103

Media

(1.4%)

Cable

One,

Inc.

5

3,510

Charter

Communications,

Inc.

,

Class

 A(a)

114

40,768

Comcast

Corp.

,

Class

 A

4,530

171,732

Interpublic

Group

of

Cos.,

Inc.

(The)

424

15,790

Liberty

Broadband

Corp.

,

Class

 C(a)

145

11,846

New

York

Times

Co.

(The)

,

Class

 A

178

6,921

Omnicom

Group,

Inc.

218

20,566

Paramount

Global

,

Class

 B

649

14,479

Sirius

XM

Holdings,

Inc.

669

2,656

TEGNA,

Inc.

226

3,822

Trade

Desk,

Inc.

(The)

,

Class

 A(a)

483

29,419

321,509

Metals

&

Mining

(0.4%)

Commercial

Metals

Co.

121

5,917

Semi-Annual

Report

—

March

31,

2023

(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

(cont’d)

Nucor

Corp.

273

$

42,170

Reliance

Steel

&

Aluminum

Co.

63

16,175

Steel

Dynamics,

Inc.

181

20,464

84,726

Multi-Utilities

(0.5%)

Black

Hills

Corp.

71

4,480

CMS

Energy

Corp.

317

19,457

Dominion

Energy,

Inc.

905

50,599

Public

Service

Enterprise

Group,

Inc.

540

33,723

108,259

Paper

&

Forest

Products

(0.0%)(b)

Louisiana-Pacific

Corp.

77

4,174

Passenger

Airlines

(0.1%)

Alaska

Air

Group,

Inc.

(a)

133

5,581

Delta

Air

Lines,

Inc.

(a)

693

24,199

29,780

Personal

Care

Products

(0.0%)(b)

Coty,

Inc.

,

Class

 A(a)

370

4,462

Pharmaceuticals

(4.4%)

Bristol-Myers

Squibb

Co.

2,274

157,611

Elanco

Animal

Health,

Inc.

(a)

508

4,775

Eli

Lilly

&

Co.

918

315,260

Jazz

Pharmaceuticals

plc

(a)

66

9,658

Merck

&

Co.,

Inc.

2,749

292,466

Perrigo

Co.

plc

147

5,273

Pfizer,

Inc.

6,088

248,390

1,033,433

Professional

Services

(1.2%)

ASGN,

Inc.

(a)

53

4,381

Automatic

Data

Processing,

Inc.

447

99,516

Booz

Allen

Hamilton

Holding

Corp.

142

13,162

CoStar

Group,

Inc.

(a)

436

30,019

Equifax,

Inc.

133

26,978

ExlService

Holdings,

Inc.

(a)

35

5,664

Exponent,

Inc.

54

5,383

FTI

Consulting,

Inc.

(a)

36

7,105

Genpact

Ltd.

185

8,551

Paychex,

Inc.

349

39,992

Robert

Half

International,

Inc.

115

9,265

Science

Applications

International

Corp.

60

6,448

TriNet

Group,

Inc.

(a)

40

3,224

Verisk

Analytics,

Inc.

169

32,424

292,112

Real

Estate

Management

&

Development

(0.2%)

CBRE

Group,

Inc.

,

Class

 A(a)

340

24,755

Howard

Hughes

Corp.

(The)

(a)

39

3,120

Jones

Lang

LaSalle,

Inc.

(a)

50

7,274

Zillow

Group,

Inc.

,

Class

 C(a)

182

8,094

43,243

Semiconductors

&

Semiconductor

Equipment

(8.8%)

Analog

Devices,

Inc.

547

107,879

Applied

Materials,

Inc.

911

111,898

Broadcom,

Inc.

444

284,844

Cirrus

Logic,

Inc.

(a)

60

6,563

Shares

Value

Entegris

,

Inc.

163

$

13,368

First

Solar,

Inc.

(a)

108

23,490

Intel

Corp.

4,488

146,623

Lam

Research

Corp.

146

77,397

Marvell

Technology,

Inc.

922

39,923

Micron

Technology,

Inc.

1,179

71,141

MKS

Instruments,

Inc.

62

5,494

Monolithic

Power

Systems,

Inc.

48

24,026

NVIDIA

Corp.

2,561

711,369

ON

Semiconductor

Corp.

(a)

466

38,361

Qorvo

,

Inc.

(a)

108

10,969

QUALCOMM,

Inc.

1,207

153,989

Semtech

Corp.

(a)

69

1,666

Silicon

Laboratories,

Inc.

(a)

35

6,128

Skyworks

Solutions,

Inc.

172

20,293

Teradyne,

Inc.

170

18,277

Texas

Instruments,

Inc.

982

182,662

Universal

Display

Corp.

47

7,291

Wolfspeed

,

Inc.

(a)

136

8,833

2,072,484

Software

(15.2%)

Adobe,

Inc.

(a)

493

189,987

ANSYS,

Inc.

(a)

94

31,283

Autodesk,

Inc.

(a)

233

48,501

Cadence

Design

Systems,

Inc.

(a)

293

61,556

Dropbox,

Inc.

,

Class

 A(a)

294

6,356

Elastic

NV

(a)

83

4,806

Fair

Isaac

Corp.

(a)

26

18,270

Five9,

Inc.

(a)

72

5,205

Fortinet,

Inc.

(a)

772

51,307

Gen

Digital,

Inc.

618

10,605

Guidewire

Software,

Inc.

(a)

88

7,220

HubSpot

,

Inc.

(a)

51

21,866

Intuit,

Inc.

296

131,966

Manhattan

Associates,

Inc.

(a)

67

10,375

Microsoft

Corp.

7,957

2,294,003

NCR

Corp.

(a)

135

3,185

Palo

Alto

Networks,

Inc.

(a)

323

64,516

Paycom

Software,

Inc.

(a)

55

16,721

Paylocity

Holding

Corp.

(a)

45

8,945

PTC,

Inc.

(a)

118

15,131

Qualys

,

Inc.

(a)

39

5,071

RingCentral,

Inc.

,

Class

 A(a)

92

2,822

Roper

Technologies,

Inc.

115

50,679

Salesforce,

Inc.

(a)

1,048

209,370

ServiceNow

,

Inc.

(a)

219

101,774

Smartsheet

,

Inc.

,

Class

 A(a)

137

6,549

Splunk

,

Inc.

(a)

163

15,629

Synopsys,

Inc.

(a)

164

63,345

Tenable

Holdings,

Inc.

(a)

118

5,606

Tyler

Technologies,

Inc.

(a)

45

15,959

VMware,

Inc.

,

Class

 A(a)

231

28,840

Workday,

Inc.

,

Class

 A(a)

217

44,819

Zscaler

,

Inc.

(a)

93

10,865

3,563,132

Specialty

Retail

(2.6%)

Advance

Auto

Parts,

Inc.

63

7,661

Semi-Annual

Report

—

March

31,

2023

(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

Specialty

Retail

(cont’d)

AutoNation,

Inc.

(a)

37

$

4,971

Bath

&

Body

Works,

Inc.

241

8,816

Best

Buy

Co.,

Inc.

214

16,750

Five

Below,

Inc.

(a)

59

12,152

Gap,

Inc.

(The)

197

1,978

Home

Depot,

Inc.

(The)

1,104

325,812

O'Reilly

Automotive,

Inc.

(a)

67

56,882

Ross

Stores,

Inc.

365

38,737

TJX

Cos.,

Inc.

(The)

1,252

98,107

Tractor

Supply

Co.

119

27,970

Wayfair,

Inc.

,

Class

 A(a)

72

2,473

Williams-Sonoma,

Inc.

72

8,760

611,069

Technology

Hardware,

Storage

&

Peripherals

(12.6%)

Apple,

Inc.

17,157

2,829,189

Dell

Technologies,

Inc.

,

Class

 C

254

10,213

Hewlett

Packard

Enterprise

Co.

1,386

22,079

HP,

Inc.

1,064

31,228

NetApp,

Inc.

233

14,877

Pure

Storage,

Inc.

,

Class

 A(a)

307

7,832

Seagate

Technology

Holdings

plc

225

14,877

Western

Digital

Corp.

(a)

335

12,620

2,942,915

Textiles,

Apparel

&

Luxury

Goods

(0.4%)

Capri

Holdings

Ltd.

(a)

129

6,063

Columbia

Sportswear

Co.

39

3,519

Deckers

Outdoor

Corp.

(a)

28

12,588

Hanesbrands,

Inc.

333

1,752

Lululemon

Athletica

,

Inc.

(a)

121

44,067

Ralph

Lauren

Corp.

44

5,134

Skechers

USA,

Inc.

,

Class

 A(a)

145

6,890

Tapestry,

Inc.

255

10,993

Under

Armour

,

Inc.

,

Class

 A(a)

178

1,689

92,695

Trading

Companies

&

Distributors

(0.4%)

Air

Lease

Corp.

113

4,449

Beacon

Roofing

Supply,

Inc.

(a)

54

3,178

Fastenal

Co.

618

33,335

MSC

Industrial

Direct

Co.,

Inc.

,

Class

 A

49

4,116

SiteOne

Landscape

Supply,

Inc.

(a)

48

6,570

Univar

Solutions,

Inc.

(a)

177

6,200

WESCO

International,

Inc.

48

7,418

WW

Grainger,

Inc.

49

33,751

99,017

Water

Utilities

(0.1%)

Essential

Utilities,

Inc.

287

12,528

Wireless

Telecommunication

Services

(0.4%)

T-Mobile

US,

Inc.

(a)

646

93,567

Total

Common

Stocks

(Cost

$22,407,384)

23,385,054

Shares

Value

Short-Term

Investment

(0.2%)

Investment

Company

(0.2%

)

Morgan

Stanley

Institutional

Liquidity

Funds

-

Government

Portfolio

-

Institutional

Class

(See

Note

G)

(Cost

$56,958)

56,958

56,958

Total

Investments

(99.9%)

(Cost

$22,464,342)

(c)

23,442,012

Other

Assets

in

Excess

of

Liabilities

(0.1%)

13,358

NET

ASSETS

(100.0%)

$23,455,370

(a)

Non-income

producing

security.

(b)

Amount

is

less

than

0.05%.

(c)

At

March

31,

2023,

the

aggregate

cost

for

federal

income

tax

purposes

is

$22,464,342.

The

aggregate

gross

unrealized

appreciation

is

$1,615,130

and

the

aggregate

gross

unrealized

depreciation

is

$637,460,

resulting

in

net

unrealized

appreciation

of

$977,670.

Portfolio

Composition

Classification  

Percentage

of

Total

Investments

Other*

58.0

%

Software

15.2

Technology

Hardware,

Storage

&

Peripherals

12.6

Semiconductors

&

Semiconductor

Equipment

8.8

Interactive

Media

&

Services

5.4

Total

Investments

100.0

%

*

Industries

and/or

investment

types

representing

less

than

5%

of

total

investments.

Semi-Annual

Report

—

March

31,

2023

(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,

2023

Assets:

Investments

in

Securities

of

Unaffiliated

Issuers,

at

Value

(Cost

$22,407,384)

$

23,385,054

Investment

in

Security

of

Affiliated

Issuer,

at

Value

(Cost

$56,958)

56,958

Total

Investments

in

Securities,

at

Value

(Cost

$22,464,342)

23,442,012

Dividends

Receivable

16,024

Total

Assets

23,458,036

Liabilities:

Payable

for

Management

Fee

2,666

Total

Liabilities

2,666

Net

Assets

$

23,455,370

Net

Assets

Consist

of:

Paid-in-Capital

$

22,500,000

Total

Distributable

Earnings

955,370

Net

Assets

$

23,455,370

Shares

Outstanding

$0.001

Par

Value

(unlimited

shares

authorized)

450,000

Net

Asset

Value

Per

Share

$

52.12

Semi-Annual

Report

—

March

31,

2023

(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

Period

from

January

30,

2023

^

to

March

31,

2023

Investment

Income:

Dividends

from

Securities

of

Unaffiliated

Issuers

(Net

of

$4

of

Foreign

Taxes

Withheld)

$

60,040

Dividends

from

Security

of

Affiliated

Issuer

(Note

G)

359

Total

Investment

Income

60,399

Expenses:

Management

Fee

(Note

B)

5,239

Total

Expenses

5,239

Rebate

from

Morgan

Stanley

Affiliate

(Note

G)

(12)

Net

Expenses

5,227

Net

Investment

Income

55,172

Realized

Gain

(Loss):

Investments

Sold

(38,595)

Net

Realized

Loss

(38,595)

Change

in

Unrealized

Appreciation

(Depreciation):

Investments

977,670

Net

Change

in

Unrealized

Appreciation

(Depreciation)

977,670

Net

Realized

Loss

and

Change

in

Unrealized

Appreciation

(Depreciation)

939,075

Net

Increase

in

Net

Assets

Resulting

from

Operations

$

994,247

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

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

Statement

of

Changes

in

Net

Assets

Period

from

January

30,

2023

^

to

March

31,

2023

Increase

(Decrease)

in

Net

Assets:

Operations:

Net

Investment

Income

$

55,172

Net

Realized

Loss

(38,595)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

977,670

Net

Increase

in

Net

Assets

Resulting

from

Operations

994,247

Dividends

and

Distributions

to

Sharehol

ders:

Dividends

and

Distributions

(38,877)

Total

Dividends

and

Distributions

to

Shareholders

(38,877)

Capital

Share

Transactions:

Subscribed

20,000,000

Subscribed

In-Kind

2,500,000

Net

Increase

in

Net

Assets

Resulting

from

Capital

Share

Transactions

22,500,000

Total

Increase

in

Net

Assets

23,455,370

Net

Assets:

Beginning

of

Period

–

End

of

Period

$

23,455,370

Capital

Share

Transactions:

Beginning

of

Period

–

Shares

Subscribed

400,000

Shares

Subscribed

In-Kind

50,000

Shares

Outstanding,

End

of

Period

Net

Increase

in

450,000

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

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

Period

from

January

30,

2023

(1)

to

March

31,

2023

Net

Asset

Value,

Beginning

of

Period

$50.00‌

Income

(Loss)

from

Investment

Operations:

—

Net

Investment

Income

(2)

0.12‌

Net

Realized

and

Unrealized

Gain

2.09‌

Total

from

Investment

Operations

2.21‌

Distributions

from

and/or

in

Excess

of:

—

Net

Investment

Income

(0.09‌)

Net

Asset

Value,

End

of

Period

$52.12‌

Total

Return

(3)

4.42‌%

(4)

Ratios

to

Average

Net

Assets

and

Supplemental

Data:

$23,455

Net

Assets,

End

of

Period

(Thousands)

$23,455‌

Ratio

of

Expenses

0.14‌%

(5)(6)

Ratio

of

Net

Investment

Income

1.45‌%

(5)(6)

Ratio

of

Rebate

from

Morgan

Stanley

Affiliates

0.00‌%

(5)(7)

Portfolio

Turnover

Rate

1‌%

(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,

2023

(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

reporting

guidance

Accounting

Standard

Codification

("ASC")

Topic

946.

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-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

rele-

vant

exchanges.

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

security

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

market

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

relevant

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

repu-

table

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

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

or

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

brokers/dealers;

(4)

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;

(5)

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.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

15

Morgan

Stanley

ETF

Trust

2.

Fair

Value

Measurement:

Financial

Accounting

Standards

Board

(“FASB”)

ASC

820,

“Fair

Value

Mea-

surement”

(“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

par-

ticipants

at

the

measurement

date. ASC

820

establishes

a

three tier

hierarchy

to

distinguish

between

(1)

inputs

that

reflect

the

assumptions

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

participants

would

use

in

valuing

an

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances

(unobservable

inputs)

and

to

establish

classification

of

fair

value

measurements

for

disclosure

purposes.

Various

inputs

are

used

in

determin-

ing

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,

2023:

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

Aerospace

&

Defense

$

20

$

—

$

—

$

20

Air

Freight

&

Logistics

185

—

—

185

Automobile

Components

16

—

—

16

Automobiles

60

—

—

60

Banks

841

—

—

841

Beverages

612

—

—

612

Biotechnology

363

—

—

363

Broadline

Retail

45

—

—

45

Building

Products

125

—

—

125

Capital

Markets

555

—

—

555

Chemicals

180

—

—

180

Commercial

Services

&

Supplies

165

—

—

165

Communications

Equipment

348

—

—

348

Construction

&

Engineering

58

—

—

58

Construction

Materials

25

—

—

25

Consumer

Finance

194

—

—

194

Consumer

Staples

Distribution

&

Retail

442

—

—

442

Containers

&

Packaging

95

—

—

95

Distributors

42

—

—

42

Diversified

Consumer

Services

23

—

—

23

Diversified

Telecommunication

Services

336

—

—

336

Electric

Utilities

289

—

—

289

Electrical

Equipment

258

—

—

258

Electronic

Equipment,

Instruments

&

Components

190

—

—

190

Energy

Equipment

&

Services

32

—

—

32

Entertainment

279

—

—

279

Financial

Services

854

—

—

854

Food

Products

322

—

—

322

Gas

Utilities

18

—

—

18

Ground

Transportation

207

—

—

207

Health

Care

Equipment

&

Supplies

895

—

—

895

Health

Care

Providers

&

Services

231

—

—

231

Health

Care

Technology

28

—

—

28

Hotels,

Restaurants

&

Leisure

444

—

—

444

Household

Durables

99

—

—

99

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

16

Morgan

Stanley

ETF

Trust

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

indemnifications.

The

Trust’s

max-

imum

exposure

under

these

arrangements

is

unknown.

However,

the Trust

has

not

had

prior

claims

or

losses

pursuant

to

these

contracts

and

expects

the

risk

of

loss

to

be

remote.

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,

Income

and

Expenses:

Security

transactions

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

deter-

mined

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

dividends)

net

of

applicable

withholding

taxes.

Non-cash

dividends

received

in

the

form

of

stock,

if

any,

are

recognized

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

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

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

ongo-

ing

services

to

shareholders

of

the

Fund

and

the

maintenance

of

shareholder

accounts

in

an

amount

up

to

0.25%

of

its

aver-

age

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)

Common

Stocks

(cont’d)

Household

Products

$

161

$

—

$

—

$

161

Independent

Power

and

Renewable

Electricity

Producers

25

—

—

25

Insurance

476

—

—

476

Interactive

Media

&

Services

1,265

—

—

1,265

IT

Services

108

—

—

108

Leisure

Products

7

—

—

7

Life

Sciences

Tools

&

Services

581

—

—

581

Machinery

478

—

—

478

Media

321

—

—

321

Metals

&

Mining

85

—

—

85

Multi-Utilities

108

—

—

108

Paper

&

Forest

Products

4

—

—

4

Passenger

Airlines

30

—

—

30

Personal

Care

Products

4

—

—

4

Pharmaceuticals

1,033

—

—

1,033

Professional

Services

292

—

—

292

Real

Estate

Management

&

Development

43

—

—

43

Semiconductors

&

Semiconductor

Equipment

2,072

—

—

2,072

Software

3,563

—

—

3,563

Specialty

Retail

611

—

—

611

Technology

Hardware,

Storage

&

Peripherals

2,943

—

—

2,943

Textiles,

Apparel

&

Luxury

Goods

93

—

—

93

Trading

Companies

&

Distributors

99

—

—

99

Water

Utilities

13

—

—

13

Wireless

Telecommunication

Services

94

—

—

94

Total

Common

Stocks

23,385

—

—

23,385

Short-Term

Investment

Investment

Company

57

—

—

57

Total

Assets

$23,442

$—

$—

$23,442

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

17

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

securi-

ties

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

Funds’

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

you

buy

or

sell

Fund

shares

on

the

secondary

market,

you

will

pay

or

receive

the

market

price,

which

may

be

higher

or

lower

than

NAV.

Your

transaction

will

be

priced

at

NAV

if

you

purchase

or

redeem

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.

Transaction

fees

assessed

during

the

period

are

in-

cluded

in

the

proceeds

or

cost

from

shares

issued

or

redeemed

on

the

Statements

of

Changes

in

Net

Assets.

G.

Security

Transactions

and

Transactions

with

Affil-

iates:

For

the

period ended

March

31,

2023 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 $20,324,495

and

$302,809,

respec-

tively.

There

were

no

purchases

and

sales

of

long-term

U.S.

Government

securities

for

the

period ended

March

31,

2023.

Purchases

related

to

In-Kind

transactions

were

$2,424,292

for

period

end.

There

were

no

sales

related

to

In-Kind

transactions

for

the

period

ended

March

31,

2023.

The

Fund

invests

in

the

Institutional

Class

of

the

Morgan

Stanley

Institutional

Liquidity

Funds

—

Government

Portfolio

(the

“Liquidity

Funds”),

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

Funds.

For

the

period ended

March

31,

2023, management

fees

paid

were

reduced

by $12 relating

to

the

Fund’s

investment

in

the

Liquidity

Funds. 

A

summary

of

the

Fund’s

transactions

in

shares

of

affiliated

investments

during

the

period ended

March

31,

2023 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

income.

Accordingly,

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

Affiliated

Investment

Company

Value

January

30,

2023

Purchases

at

Cost

Proceeds

from

Sales

Dividend

Income

Liquidity

Funds

$

–

$

97,110

$

40,152

$

359

Affiliated

Investment

Company

(cont'd)

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

March

31,

2023

Liquidity

Funds  

$

–

$

–

$

56,958

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

18

Morgan

Stanley

ETF

Trust

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:

An

investment

in

the

Fund

is

based

on

the

values

of

the

Fund's

investments,

which

may

change

due

to

economic

and

other

events

that

affect

markets

generally,

as

well

as

those

that

affect

particular

regions,

countries,

indus-

tries,

companies

or

governments.

Social,

political,

economic

and

other

conditions

and

events,

such

as

war,

natural

disasters,

health

emergencies

(e.g.,

epidemics

and

pandemics),

terrorism,

conflicts,

social

unrest,

recessions,

inflation,

rapid

interest

rate

changes

and

supply

chain

disruptions,

may

occur

and

could

significantly

impact

issuers,

industries,

governments

and

other

systems,

including

the

financial

markets

and

global

economy.

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

be

sudden

and

significant

and

may

negatively

impact

broad

segments

of

businesses

and

populations

and

have

a

significant

and

rapid

negative

impact

on

the

performance

of

and/or

income

or

yield

from

the

Fund's

investments

and

exacerbate

pre-existing

risks

to

the

Fund.

For

example,

the

extent

of

the

impact

of

a

public

health

emergency

depends

on

future

developments,

including

(i)

the

duration

and

spread

of

the

public

health

emergency,

(ii)

the

restrictions

and

advisories,

(iii)

the

effects

on

the

financial

markets,

(iv)

government

and

regulatory

responses,

and

(v)

the

effects

on

the

economy

overall

as

a

result

of

developments

such

as

disruption

to

consumer

demand,

economic

output

and

supply

chains.

The

occurrence,

duration

and

extent

of

these

or

other

types

of

adverse

economic

and

market

conditions

and

uncertainty

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

developments

and

the

extent

to

which

the

associated

conditions

impact

the

Fund

will

also

depend

on

other

future

developments,

which

are

highly

un-

certain,

difficult

to

accurately

predict

and

subject

to

change

at

any

time.

The

financial

performance

of

the

Fund's

investments

(and,

in

turn,

the

Fund's

investment

results)

as

well

as

their

liquidity

may

be

adversely

affected

because

of

these

and

similar

types

of

factors

and

developments.

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

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

19

Morgan

Stanley

ETF

Trust

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.

To

the

extent

that

these

intermediaries

exit

the

business

or

are

unable

to

or

choose

not

to

proceed

with

creation

and/or

redemption

orders

with

respect

to

the

Fund

and

no

other

authorized

participant

creates

or

redeems,

shares

may

trade

at

a

discount

to

net

asset

value

(“NAV”)

and

possibly

face

trading

halts

and/or

delisting. 

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

other

factors,

may

result

in

the

shares

trading

significantly

above

(at

a

premium)

or

below

(at

a

discount)

to

NAV

or

to

the

intraday

value

of

the

Fund’s

holdings

(and,

as

a

result,

an

investor

may

pay

more

for,

or

receive

less

than,

the

underlying

value

of

the

shares,

respectively).

Buying

or

selling

shares

in

the

secondary

market

may

require

paying

brokerage

commissions

or

other

charges

imposed

by

brokers

as

determined

by

that

broker.

Brokerage

commissions

are

often

a

fixed

amount

and

may

be

a

significant

proportional

cost

when

seeking

to

buy

or

sell

relatively

small

amounts

of

shares.

In

addition,

the

market

price

of

shares,

like

the

price

of

any

exchange-traded

security,

includes

a

“bid-ask

spread”

charged

by

the

market

makers

or

other

participants

that

trade

the

particular

security.

The

spread

of

a

Fund’s

shares

varies

over

time

based

on

the

Fund’s

trading

volume

and

market

liquidity

and

may

increase

if

the

Fund’s

trading

volume,

the

spread

of

the

Fund’s

underlying

securities,

or

market

liquidity

decrease. 

Large

Shareholder

Transaction

Risk:

The

Fund

may

experience

adverse

effects

when

certain

shareholders

purchase

or

redeem

large

amounts

of

shares

of

a

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

a

Fund’s

performance

to

the

extent

that

a

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

a

Fund’s

current

expenses

being

allocated

over

a

smaller

asset

base,

leading

to

an

increase

in

a

Fund’s

expense

ratio.

Although

large

shareholder

transactions

may

be

more

frequent

under

certain

circumstanc-

es,

a

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,

2023

(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

under

the

investment

management

agreement

(the

“Management

Agreement”),

including

portfolio

management,

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,

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

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,

2023

(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.

As

part

of

the

Board’s

review,

the

Board

received

information

from

management

on

the

impact

of

the

COVID-19

pandemic

on

the

firm

generally

and

the

Adviser

and

the

Fund

in

particular

including,

among

other

information,

the

pandemic’s

current

and

expected

impact

on

the

Fund’s

performance

and

operations.

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,

2023

(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

1-2,

2023,

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,

2022,

through

December

31,

2022,

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

portfolios

of

the

Trust

during

that

period.

However,

during

the

period

ended

March

31,

2023,

the

Program

applied

to

the

Fund.

23

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

April

2021

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

investment

management

affiliates’

everyday

business

purposes

—

information

about

your

transactions,

experiences,

and

creditworthiness

Yes

Yes

For

our

affiliates’

everyday

business

purposes

—

information

about

your

transactions

and

experiences

Yes

No

For

our

affiliates’

everyday

business

purposes

—

information

about

your

creditworthiness

No

We

don’t

share

For

our

investment

management

affiliates

to

market

to

you

Yes

Yes

For

our

affiliates

to

market

to

you

No

We

don’t

share

For

non-affiliates

to

market

to

you

No

We

don’t

share

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

24

April

2021

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

Investment

Management

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.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

25

April

2021

Morgan

Stanley

ETF

Trust

Definitions

Investment

Management

Affiliates

MSIM

Investment

Management

Affiliates

include

registered

investment

advisers,

registered

broker-dealers,

and

registered

and

unregistered

funds

in

the

Investment

Management

Division.

Investment

Management

Affiliates

does

not

include

entities

associated

with

Morgan

Stanley

Wealth

Management,

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

Affiliates

Companies

related

by

common

ownership

or

control.

They

can

be

financial

and

non-financial

companies.

Our

affiliates

include

companies

with

a

Morgan

Stanley

name

and

financial

companies

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

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

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,

2023

(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

Joseph

J.

Kearns

Michael

F.

Klein

Patricia

A

Maleski

W.

Allen

Reed,

Chair

of

the

Board

Adviser

Morgan

Stanley

Investment

Management

Inc.

522

Fifth

Avenue

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

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

Perkins

Coie

LLP

1155

Avenue

of

the

Americas

22nd

Floor

New

York,

New

York

10036

Independent

Registered

Public

Accounting

Firm

Ernst

&

Young

LLP

200

Clarendon

Street

Boston,

MA

02116

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.

The

Fund

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

are

available

on

the

Fund's

public

website,

www.

calvert.com.

Proxy

Voting

Policies

and

Procedures

and

Proxy

Voting

Record

You

may

obtain

a

copy

of

the

Trust’s

Proxy

Voting

Policy

and

Procedures

and

information

regarding

how

the

Trust

voted

proxies

relating

to

portfolio

securities

during

the

most

recent

twelve-month

period

ended

June

30,

without

charge,

on

our

web

site

at

www.calvert.com.

This

information

is

also

available

on

the

SEC’s

website

at

www.sec.gov.

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,

which

describes

in

detail

the

fund’s

investment

policies,

risks,

fees

and

expenses.

Please

read

the

prospectus

carefully

before

you

invest

or

send

money.

For

additional

informa-

tion,

including

information

regarding

the

investments

comprising

the

Fund,

please

visit

our

website

at

www.morganstanley.com/im/shareholderreports.

ETFCALUSLGCAPDIVEQTYIISAN

5648349

EXP

05.31.24

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.

522

Fifth

Avenue

New

York,

New

York

10036 

©

2023

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,

2023

Morgan

Stanley

ETF

Trust

Semi-Annual

Report

—

March

31,

2023

(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.calvert.com

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

Performance

Summary

.....................................................................................

3

Portfolio

of

Investments

.....................................................................................

4

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

....................................................................

21

Liquidity

Risk

Management

Program

.........................................................................

23

U.S.

Customer

Privacy

Notice

...............................................................................

24

Trustees

and

Officers

Information

...........................................................................

27

2

Semi-Annual

Report

—

March

31,

2023

(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

period

beginning

January

30,

2023

(when

the

Fund

commenced

opera-

tions)

and

ended

March

31,

2023.

Morgan

Stanley

Investment

Management

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

challenges

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

2023

3

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Performance

Summary

Calvert

US

Mid-Cap

Core

Responsible

Index

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/shareholderreports.

Investment

return

and

principal

value

will

fluctuate

so

that

Fund

shares,

when

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

redemption

of

Fund

shares.

Fund's

total

returns

are

calculated

as

of

the

last

business

day

of

the

period.

Performance

Compared

to

the

Russell

Mid-Cap

®

Index

(1)

and

the

Calvert

US

Mid-Cap

Core

Responsible

Index

(2)

Cumulative

Total

Return

for

the

period

Ended

March

31,

2023

Since

Inception

(3)

Calvert

US

Mid-Cap

Core

Responsible

Index

ETF

-

NAV

(4)

-2.09%

Calvert

US

Mid-Cap

Core

Responsible

Index

ETF

-

Market

Price

(4)

-2.13%

Russell

Mid-Cap

®

Index

-2.11%

Calvert

US

Mid-Cap

Core

Responsible

Index

-2.08%

(1)

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.

(2)

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.

(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.

Expense

Example

Beginning

Account

Value

(1/30/23)

Actual

Ending

Account

Value

(3/31/23)

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

$979.10

$1,008.11

$0.25

$0.25

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

61/365

(to

reflect

the

actual

days

in

the

period).

**

Annualized.

^

The

Fund

commenced

operations

on

January

30,

2023.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

Calvert

US

Mid-Cap

Core

Responsible

Index

ETF

4

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Shares

Value

Common

Stocks

(99.6%)

Aerospace

&

Defense

(0.6%)

Axon

Enterprise,

Inc.

(a)

232

$

52,165

Curtiss-Wright

Corp.

133

23,443

HEICO

Corp.

138

23,603

Hexcel

Corp.

291

19,861

Woodward,

Inc.

192

18,695

137,767

Air

Freight

&

Logistics

(0.6%)

CH

Robinson

Worldwide,

Inc.

402

39,947

Expeditors

International

of

Washington,

Inc.

551

60,676

GXO

Logistics,

Inc.

(a)

447

22,555

123,178

Automobile

Components

(1.0%)

Aptiv

plc

(a)

846

94,913

Autoliv,

Inc.

300

28,008

BorgWarner,

Inc.

810

39,779

Gentex

Corp.

813

22,788

Lear

Corp.

206

28,735

214,223

Automobiles

(0.3%)

Harley-Davidson,

Inc.

506

19,213

Rivian

Automotive,

Inc.

,

Class

 A(a)

2,066

31,981

Thor

Industries,

Inc.

178

14,176

65,370

Banks

(3.2%)

Bank

OZK

339

11,594

BOK

Financial

Corp.

83

7,006

Cadence

Bank

533

11,065

Citizens

Financial

Group,

Inc.

1,392

42,275

Comerica,

Inc.

378

16,413

Commerce

Bancshares,

Inc.

350

20,423

Cullen/Frost

Bankers,

Inc.

173

18,224

East

West

Bancorp,

Inc.

405

22,478

Fifth

Third

Bancorp

1,975

52,614

First

Citizens

BancShares,

Inc.

,

Class

 A

31

30,166

First

Financial

Bankshares,

Inc.

374

11,931

First

Horizon

Corp.

1,529

27,186

First

Interstate

BancSystem,

Inc.

,

Class

 A

250

7,465

First

Republic

Bank

527

7,373

FNB

Corp.

1,031

11,960

Glacier

Bancorp,

Inc.

319

13,401

Hancock

Whitney

Corp.

246

8,954

Home

BancShares,

Inc.

546

11,854

Huntington

Bancshares,

Inc.

4,111

46,043

KeyCorp

2,689

33,666

M&T

Bank

Corp.

483

57,752

New

York

Community

Bancorp,

Inc.

1,931

17,456

Old

National

Bancorp

839

12,098

Pinnacle

Financial

Partners,

Inc.

217

11,970

Popular,

Inc.

203

11,654

Prosperity

Bancshares,

Inc.

253

15,565

Regions

Financial

Corp.

2,697

50,056

ServisFirst

Bancshares,

Inc.

145

7,921

SouthState

Corp.

216

15,392

Synovus

Financial

Corp.

418

12,887

UMB

Financial

Corp.

131

7,561

Shares

Value

United

Bankshares,

Inc.

381

$

13,411

Valley

National

Bancorp

1,245

11,504

Webster

Financial

Corp.

498

19,631

Western

Alliance

Bancorp

296

10,520

Wintrust

Financial

Corp.

174

12,693

Zions

Bancorp

NA

423

12,660

712,822

Beverages

(0.1%)

Celsius

Holdings,

Inc.

(a)

137

12,733

Coca-Cola

Consolidated,

Inc.

15

8,026

20,759

Biotechnology

(3.1%)

Alkermes

plc

(a)

507

14,292

Alnylam

Pharmaceuticals,

Inc.

(a)

386

77,324

Apellis

Pharmaceuticals,

Inc.

(a)

296

19,524

Biogen,

Inc.

(a)

437

121,499

Biohaven

Ltd.

(a)

181

2,472

BioMarin

Pharmaceutical,

Inc.

(a)

569

55,330

Exact

Sciences

Corp.

(a)

552

37,431

Exelixis,

Inc.

(a)

989

19,197

Halozyme

Therapeutics,

Inc.

(a)

419

16,002

Horizon

Therapeutics

plc

(a)

706

77,053

Incyte

Corp.

(a)

570

41,194

Ionis

Pharmaceuticals,

Inc.

(a)

433

15,475

Neurocrine

Biosciences,

Inc.

(a)

297

30,062

Sarepta

Therapeutics,

Inc.

(a)

259

35,698

Seagen,

Inc.

(a)

425

86,050

United

Therapeutics

Corp.

(a)

140

31,354

679,957

Broadline

Retail

(0.6%)

Dillard's,

Inc.

,

Class

 A

10

3,077

eBay,

Inc.

1,572

69,750

Etsy,

Inc.

(a)

364

40,524

Kohl's

Corp.

308

7,250

Macy's,

Inc.

792

13,852

Nordstrom,

Inc.

328

5,337

139,790

Building

Products

(2.9%)

Advanced

Drainage

Systems,

Inc.

241

20,295

Allegion

plc

303

32,339

Carlisle

Cos.,

Inc.

196

44,310

Carrier

Global

Corp.

2,541

116,251

Fortune

Brands

Innovations,

Inc.

373

21,906

Johnson

Controls

International

plc

2,047

123,269

Lennox

International,

Inc.

110

27,641

Masco

Corp.

658

32,716

Masterbrand,

Inc.

(a)

373

2,999

Owens

Corning

406

38,895

Simpson

Manufacturing

Co.,

Inc.

147

16,117

Trane

Technologies

plc

686

126,210

Trex

Co.,

Inc.

(a)

320

15,574

UFP

Industries,

Inc.

176

13,987

632,509

Capital

Markets

(5.6%)

Affiliated

Managers

Group,

Inc.

103

14,669

Ameriprise

Financial,

Inc.

304

93,176

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

(cont’d)

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

Capital

Markets

(cont’d)

Ares

Management

Corp.

402

$

33,543

Bank

of

New

York

Mellon

Corp.

(The)

2,320

105,421

Blue

Owl

Capital,

Inc.

1,235

13,684

Carlyle

Group,

Inc.

(The)

583

18,108

Cboe

Global

Markets,

Inc.

305

40,943

Coinbase

Global,

Inc.

,

Class

 A(a)

444

30,001

Evercore,

Inc.

,

Class

 A

103

11,884

FactSet

Research

Systems,

Inc.

139

57,698

Franklin

Resources,

Inc.

839

22,603

Houlihan

Lokey,

Inc.

145

12,686

Interactive

Brokers

Group,

Inc.

,

Class

 A

286

23,612

Invesco

Ltd.

1,288

21,123

Jefferies

Financial

Group,

Inc.

562

17,838

KKR

&

Co.,

Inc.

1,652

86,763

LPL

Financial

Holdings,

Inc.

229

46,350

MarketAxess

Holdings,

Inc.

141

55,172

Morningstar,

Inc.

99

20,100

MSCI,

Inc.

234

130,967

Nasdaq,

Inc.

979

53,522

Northern

Trust

Corp.

591

52,085

Raymond

James

Financial,

Inc.

563

52,511

SEI

Investments

Co.

320

18,416

State

Street

Corp.

991

75,009

Stifel

Financial

Corp.

298

17,609

T

Rowe

Price

Group,

Inc.

635

71,691

Tradeweb

Markets,

Inc.

,

Class

 A

320

25,286

Virtu

Financial,

Inc.

,

Class

 A

283

5,349

1,227,819

Chemicals

(2.1%)

Ashland,

Inc.

187

19,207

Avient

Corp.

294

12,101

Axalta

Coating

Systems

Ltd.

(a)

762

23,081

Cabot

Corp.

193

14,792

Celanese

Corp.

374

40,725

Eastman

Chemical

Co.

409

34,495

Element

Solutions,

Inc.

765

14,772

FMC

Corp.

431

52,638

Huntsman

Corp.

623

17,045

International

Flavors

&

Fragrances,

Inc.

843

77,522

Livent

Corp.

(a)

616

13,380

Mosaic

Co.

(The)

1,175

53,909

PPG

Industries,

Inc.

738

98,582

472,249

Commercial

Services

&

Supplies

(1.0%)

Clean

Harbors,

Inc.

(a)

187

26,659

Copart,

Inc.

(a)

1,360

102,286

MSA

Safety,

Inc.

127

16,954

Rollins,

Inc.

935

35,090

Stericycle,

Inc.

(a)

342

14,915

Tetra

Tech,

Inc.

197

28,941

224,845

Communications

Equipment

(1.7%)

Arista

Networks,

Inc.

(a)

735

123,377

Ciena

Corp.

(a)

463

24,317

F5,

Inc.

(a)

189

27,535

Juniper

Networks,

Inc.

1,011

34,799

Shares

Value

Lumentum

Holdings,

Inc.

(a)

210

$

11,342

Motorola

Solutions,

Inc.

497

142,207

363,577

Construction

&

Engineering

(1.0%)

AECOM

516

43,509

EMCOR

Group,

Inc.

175

28,453

MasTec,

Inc.

(a)

223

21,060

Quanta

Services,

Inc.

475

79,154

Valmont

Industries,

Inc.

73

23,308

WillScot

Mobile

Mini

Holdings

Corp.

(a)

749

35,113

230,597

Construction

Materials

(0.3%)

Vulcan

Materials

Co.

438

75,143

Consumer

Finance

(0.8%)

Ally

Financial,

Inc.

857

21,845

Credit

Acceptance

Corp.

(a)

18

7,849

Discover

Financial

Services

753

74,426

OneMain

Holdings,

Inc.

347

12,867

SLM

Corp.

689

8,537

SoFi

Technologies,

Inc.

(a)

2,326

14,119

Synchrony

Financial

1,257

36,553

Upstart

Holdings,

Inc.

(a)

216

3,432

179,628

Consumer

Staples

Distribution

&

Retail

(1.5%)

Albertsons

Cos.,

Inc.

,

Class

 A

593

12,323

BJ's

Wholesale

Club

Holdings,

Inc.

(a)

391

29,743

Casey's

General

Stores,

Inc.

117

25,326

Dollar

Tree,

Inc.

(a)

647

92,877

Kroger

Co.

(The)

2,226

109,898

Performance

Food

Group

Co.

(a)

475

28,661

U.S.

Foods

Holding

Corp.

(a)

685

25,304

324,132

Containers

&

Packaging

(1.6%)

AptarGroup,

Inc.

225

26,593

Avery

Dennison

Corp.

275

49,206

Ball

Corp.

1,080

59,519

Berry

Global

Group,

Inc.

420

24,738

Crown

Holdings,

Inc.

408

33,746

Graphic

Packaging

Holding

Co.

1,050

26,764

Packaging

Corp.

of

America

313

43,454

Sealed

Air

Corp.

493

22,633

Silgan

Holdings,

Inc.

287

15,403

Sonoco

Products

Co.

335

20,435

Westrock

Co.

874

26,631

349,122

Distributors

(0.7%)

Genuine

Parts

Co.

406

67,928

LKQ

Corp.

779

44,216

Pool

Corp.

112

38,353

150,497

Diversified

Consumer

Services

(0.4%)

ADT,

Inc.

799

5,777

Bright

Horizons

Family

Solutions,

Inc.

(a)

219

16,861

H&R

Block,

Inc.

579

20,409

Semi-Annual

Report

—

March

31,

2023

(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

Diversified

Consumer

Services

(cont’d)

Service

Corp.

International

568

$

39,067

82,114

Diversified

Telecommunication

Services

(0.1%)

Iridium

Communications,

Inc.

357

22,109

Lumen

Technologies,

Inc.

3,241

8,589

30,698

Electric

Utilities

(1.7%)

Alliant

Energy

Corp.

933

49,822

Avangrid,

Inc.

264

10,528

Constellation

Energy

Corp.

1,075

84,388

Evergy,

Inc.

842

51,463

Eversource

Energy

1,126

88,121

Hawaiian

Electric

Industries,

Inc.

404

15,514

IDACORP,

Inc.

186

20,149

NRG

Energy,

Inc.

831

28,495

PNM

Resources,

Inc.

315

15,334

Portland

General

Electric

Co.

331

16,183

379,997

Electrical

Equipment

(2.0%)

Acuity

Brands,

Inc.

111

20,283

AMETEK,

Inc.

715

103,911

Atkore,

Inc.

(a)

135

18,965

ChargePoint

Holdings,

Inc.

(a)

874

9,151

Generac

Holdings,

Inc.

(a)

211

22,790

Hubbell,

Inc.

185

45,012

nVent

Electric

plc

563

24,175

Plug

Power,

Inc.

(a)

1,440

16,877

Regal

Rexnord

Corp.

225

31,664

Rockwell

Automation,

Inc.

356

104,468

Sensata

Technologies

Holding

plc

524

26,211

Sunrun,

Inc.

(a)

580

11,687

435,194

Electronic

Equipment,

Instruments

&

Components

(2.9%)

Arrow

Electronics,

Inc.

(a)

170

21,228

Avnet,

Inc.

266

12,023

CDW

Corp.

427

83,218

Cognex

Corp.

577

28,590

Coherent

Corp.

(a)

415

15,803

Corning,

Inc.

2,416

85,237

IPG

Photonics

Corp.

(a)

95

11,714

Jabil,

Inc.

404

35,617

Keysight

Technologies,

Inc.

(a)

565

91,236

Littelfuse,

Inc.

85

22,788

National

Instruments

Corp.

409

21,436

Novanta,

Inc.

(a)

123

19,568

Rogers

Corp.

(a)

60

9,806

TD

SYNNEX

Corp.

136

13,163

Teledyne

Technologies,

Inc.

(a)

159

71,130

Trimble,

Inc.

(a)

852

44,662

Zebra

Technologies

Corp.

,

Class

 A(a)

162

51,516

638,735

Energy

Equipment

&

Services

(0.4%)

Baker

Hughes

Co.

3,161

91,226

Entertainment

(1.0%)

AMC

Entertainment

Holdings,

Inc.

,

Class

 A(a)

1,972

9,880

Shares

Value

Liberty

Media

Corp-Liberty

Formula

One

,

Class

 A(a)

92

$

6,210

Live

Nation

Entertainment,

Inc.

(a)

552

38,640

Playtika

Holding

Corp.

(a)

286

3,220

ROBLOX

Corp.

,

Class

 A(a)

1,356

60,993

Roku,

Inc.

(a)

384

25,275

Take-Two

Interactive

Software,

Inc.

(a)

491

58,576

Warner

Music

Group

Corp.

,

Class

 A

472

15,751

218,545

Financial

Services

(0.9%)

Affirm

Holdings,

Inc.

(a)

648

7,303

Equitable

Holdings,

Inc.

1,042

26,456

Essent

Group

Ltd.

302

12,095

Euronet

Worldwide,

Inc.

(a)

149

16,673

Jack

Henry

&

Associates,

Inc.

230

34,666

Marqeta,

Inc.

,

Class

 A(a)

1,382

6,316

MGIC

Investment

Corp.

851

11,420

Rocket

Cos.,

Inc.

,

Class

 A(a)

311

2,818

TFS

Financial

Corp.

149

1,882

Toast,

Inc.

,

Class

 A(a)

981

17,413

Voya

Financial,

Inc.

279

19,937

Western

Union

Co.

(The)

1,207

13,458

WEX,

Inc.

(a)

134

24,641

195,078

Food

Products

(2.1%)

Bunge

Ltd.

466

44,512

Campbell

Soup

Co.

622

34,198

Conagra

Brands,

Inc.

1,486

55,814

Darling

Ingredients,

Inc.

(a)

496

28,966

Flowers

Foods,

Inc.

613

16,802

Hormel

Foods

Corp.

904

36,052

Ingredion,

Inc.

199

20,244

J.M.

Smucker

Co.

(The)

325

51,145

Kellogg

Co.

798

53,434

Lamb

Weston

Holdings,

Inc.

442

46,198

McCormick

&

Co.,

Inc.

(Non-Voting)

828

68,898

Post

Holdings,

Inc.

(a)

166

14,919

471,182

Gas

Utilities

(0.4%)

National

Fuel

Gas

Co.

326

18,823

New

Jersey

Resources

Corp.

359

19,099

ONE

Gas,

Inc.

203

16,084

Southwest

Gas

Holdings,

Inc.

247

15,425

UGI

Corp.

775

26,939

96,370

Ground

Transportation

(1.3%)

Avis

Budget

Group,

Inc.

(a)

89

17,337

JB

Hunt

Transport

Services,

Inc.

286

50,182

Knight-Swift

Transportation

Holdings,

Inc.

523

29,591

Landstar

System,

Inc.

124

22,228

Old

Dominion

Freight

Line,

Inc.

298

101,570

RXO,

Inc.

(a)

398

7,817

Ryder

System,

Inc.

158

14,100

Saia,

Inc.

(a)

92

25,031

Schneider

National,

Inc.

,

Class

 B

199

5,323

Semi-Annual

Report

—

March

31,

2023

(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

Ground

Transportation

(cont’d)

XPO,

Inc.

(a)

395

$

12,601

285,780

Health

Care

Equipment

&

Supplies

(5.1%)

Align

Technology,

Inc.

(a)

225

75,182

Baxter

International,

Inc.

1,576

63,923

Cooper

Cos.,

Inc.

(The)

154

57,497

DENTSPLY

SIRONA,

Inc.

667

26,200

Dexcom,

Inc.

(a)

1,143

132,794

Envista

Holdings

Corp.

(a)

508

20,767

Globus

Medical,

Inc.

,

Class

 A(a)

242

13,707

Hologic,

Inc.

(a)

762

61,493

ICU

Medical,

Inc.

(a)

63

10,392

IDEXX

Laboratories,

Inc.

(a)

250

125,020

Inspire

Medical

Systems,

Inc.

(a)

90

21,066

Insulet

Corp.

(a)

217

69,214

Integra

LifeSciences

Holdings

Corp.

(a)

227

13,032

iRhythm

Technologies,

Inc.

(a)

93

11,535

Lantheus

Holdings,

Inc.

(a)

206

17,007

Masimo

Corp.

(a)

151

27,866

Novocure

Ltd.

(a)

323

19,425

Omnicell,

Inc.

(a)

139

8,155

Penumbra,

Inc.

(a)

113

31,492

ResMed,

Inc.

455

99,640

Shockwave

Medical,

Inc.

(a)

112

24,285

STERIS

plc

309

59,106

Tandem

Diabetes

Care,

Inc.

(a)

201

8,163

Teleflex,

Inc.

147

37,237

Zimmer

Biomet

Holdings,

Inc.

657

84,884

1,119,082

Health

Care

Providers

&

Services

(1.6%)

agilon

health,

Inc.

(a)

654

15,532

AMN

Healthcare

Services,

Inc.

(a)

157

13,025

Chemed

Corp.

46

24,737

DaVita,

Inc.

(a)

174

14,113

Encompass

Health

Corp.

305

16,500

Enhabit,

Inc.

(a)

153

2,128

Ensign

Group,

Inc.

(The)

168

16,051

Guardant

Health,

Inc.

(a)

306

7,173

HealthEquity,

Inc.

(a)

262

15,382

Henry

Schein,

Inc.

(a)

406

33,105

Laboratory

Corp.

of

America

Holdings

276

63,320

Molina

Healthcare,

Inc.

(a)

182

48,683

Option

Care

Health,

Inc.

(a)

483

15,345

Premier,

Inc.

,

Class

 A

370

11,977

Quest

Diagnostics,

Inc.

346

48,952

R1

RCM,

Inc.

(a)

571

8,565

354,588

Health

Care

Technology

(0.5%)

Doximity,

Inc.

,

Class

 A(a)

338

10,944

Teladoc

Health,

Inc.

(a)

492

12,743

Veeva

Systems,

Inc.

,

Class

 A(a)

443

81,419

105,106

Hotels,

Restaurants

&

Leisure

(2.8%)

Aramark

812

29,070

Chipotle

Mexican

Grill,

Inc.

(a)

82

140,080

Shares

Value

Choice

Hotels

International,

Inc.

124

$

14,531

Darden

Restaurants,

Inc.

380

58,961

Domino's

Pizza,

Inc.

111

36,616

Expedia

Group,

Inc.

(a)

465

45,119

Hilton

Grand

Vacations,

Inc.

(a)

311

13,818

Hyatt

Hotels

Corp.

,

Class

 A(a)

177

19,787

Marriott

Vacations

Worldwide

Corp.

135

18,206

Planet

Fitness,

Inc.

,

Class

 A(a)

311

24,155

Texas

Roadhouse,

Inc.

209

22,584

Travel

+

Leisure

Co.

289

11,329

Vail

Resorts,

Inc.

153

35,753

Wyndham

Hotels

&

Resorts,

Inc.

324

21,983

Yum!

Brands,

Inc.

865

114,249

606,241

Household

Durables

(1.9%)

D.R.

Horton,

Inc.

969

94,662

Helen

of

Troy

Ltd.

(a)

70

6,662

Leggett

&

Platt,

Inc.

385

12,274

Lennar

Corp.

,

Class

 A

851

89,449

Mohawk

Industries,

Inc.

(a)

154

15,434

Newell

Brands,

Inc.

1,208

15,027

NVR,

Inc.

(a)

11

61,294

PulteGroup,

Inc.

833

48,547

Tempur

Sealy

International,

Inc.

488

19,271

TopBuild

Corp.

(a)

119

24,769

Whirlpool

Corp.

156

20,595

407,984

Household

Products

(0.5%)

Church

&

Dwight

Co.,

Inc.

714

63,125

Clorox

Co.

(The)

362

57,283

120,408

Independent

Power

and

Renewable

Electricity

Producers

(0.5%)

AES

Corp.

(The)

2,413

58,105

Brookfield

Renewable

Corp.

639

22,333

Clearway

Energy,

Inc.

307

9,619

Ormat

Technologies,

Inc.

182

15,428

105,485

Insurance

(4.7%)

Aflac,

Inc.

1,627

104,974

Allstate

Corp.

(The)

757

83,883

American

Financial

Group,

Inc.

195

23,692

Arch

Capital

Group

Ltd.

(a)

1,037

70,381

Assurant,

Inc.

152

18,251

Axis

Capital

Holdings

Ltd.

224

12,212

Brown

&

Brown,

Inc.

912

52,367

Cincinnati

Financial

Corp.

446

49,988

Enstar

Group

Ltd.

(a)

38

8,808

Erie

Indemnity

Co.

,

Class

 A

73

16,911

Everest

Re

Group

Ltd.

113

40,456

F&G

Annuities

&

Life,

Inc.

52

942

Fidelity

National

Financial,

Inc.

742

25,918

First

American

Financial

Corp.

377

20,984

Globe

Life,

Inc.

273

30,035

Hanover

Insurance

Group,

Inc.

(The)

102

13,107

Hartford

Financial

Services

Group,

Inc.

(The)

916

63,836

Kinsale

Capital

Group,

Inc.

64

19,210

Lincoln

National

Corp.

485

10,898

Semi-Annual

Report

—

March

31,

2023

(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

Insurance

(cont’d)

Markel

Corp.

(a)

38

$

48,542

Old

Republic

International

Corp.

793

19,801

Primerica,

Inc.

107

18,430

Principal

Financial

Group,

Inc.

700

52,024

Reinsurance

Group

of

America,

Inc.

193

25,623

RenaissanceRe

Holdings

Ltd.

125

25,042

RLI

Corp.

116

15,418

Ryan

Specialty

Holdings,

Inc.

(a)

240

9,658

Selective

Insurance

Group,

Inc.

172

16,397

Unum

Group

572

22,628

W.

R.

Berkley

Corp.

604

37,605

Willis

Towers

Watson

plc

311

72,270

1,030,291

Interactive

Media

&

Services

(0.7%)

IAC,

Inc.

(a)

246

12,694

Match

Group,

Inc.

(a)

879

33,745

Pinterest,

Inc.

,

Class

 A(a)

1,844

50,286

Snap,

Inc.

,

Class

 A(a)

3,050

34,190

ZoomInfo

Technologies,

Inc.

(a)

895

22,115

153,030

IT

Services

(2.6%)

Akamai

Technologies,

Inc.

(a)

489

38,289

Amdocs

Ltd.

383

36,779

Cloudflare,

Inc.

,

Class

 A(a)

884

54,507

Cognizant

Technology

Solutions

Corp.

,

Class

 A

1,594

97,122

DXC

Technology

Co.

(a)

714

18,250

EPAM

Systems,

Inc.

(a)

177

52,923

Gartner,

Inc.

(a)

236

76,882

MongoDB,

Inc.

(a)

210

48,955

Okta,

Inc.

(a)

468

40,360

Thoughtworks

Holding,

Inc.

(a)

280

2,061

Twilio,

Inc.

,

Class

 A(a)

544

36,247

VeriSign,

Inc.

(a)

293

61,920

564,295

Leisure

Products

(0.3%)

Brunswick

Corp.

242

19,844

Hasbro,

Inc.

374

20,080

Mattel,

Inc.

(a)

1,033

19,018

58,942

Life

Sciences

Tools

&

Services

(3.5%)

10X

Genomics,

Inc.

,

Class

 A(a)

274

15,286

Agilent

Technologies,

Inc.

887

122,708

Avantor,

Inc.

(a)

2,053

43,400

Azenta,

Inc.

(a)

215

9,593

Bio-Rad

Laboratories,

Inc.

,

Class

 A(a)

67

32,094

Bio-Techne

Corp.

484

35,908

Bruker

Corp.

309

24,362

Charles

River

Laboratories

International,

Inc.

(a)

157

31,686

Illumina,

Inc.

(a)

492

114,415

Medpace

Holdings,

Inc.

(a)

75

14,104

Mettler-Toledo

International,

Inc.

(a)

68

104,054

PerkinElmer,

Inc.

394

52,504

Repligen

Corp.

(a)

162

27,274

Shares

Value

Syneos

Health,

Inc.

(a)

321

$

11,434

Waters

Corp.

(a)

185

57,282

West

Pharmaceutical

Services,

Inc.

231

80,035

776,139

Machinery

(6.4%)

AGCO

Corp.

214

28,933

Chart

Industries,

Inc.

(a)

146

18,308

CNH

Industrial

NV

3,300

50,391

Cummins,

Inc.

431

102,957

Donaldson

Co.,

Inc.

419

27,377

Dover

Corp.

474

72,020

Evoqua

Water

Technologies

Corp.

(a)

417

20,733

Flowserve

Corp.

451

15,334

Fortive

Corp.

1,168

79,623

Graco,

Inc.

575

41,981

IDEX

Corp.

261

60,299

Ingersoll

Rand,

Inc.

1,342

78,077

ITT,

Inc.

285

24,595

Lincoln

Electric

Holdings,

Inc.

197

33,313

Middleby

Corp.

(The)

(a)

178

26,097

Nordson

Corp.

177

39,340

Oshkosh

Corp.

225

18,715

Otis

Worldwide

Corp.

1,280

108,032

PACCAR,

Inc.

1,567

114,704

Parker-Hannifin

Corp.

381

128,058

Pentair

plc

569

31,449

Snap-on,

Inc.

183

45,181

Stanley

Black

&

Decker,

Inc.

527

42,466

Timken

Co.

(The)

225

18,387

Toro

Co.

(The)

359

39,906

Watts

Water

Technologies,

Inc.

,

Class

 A

93

15,654

Westinghouse

Air

Brake

Technologies

Corp.

622

62,859

Xylem,

Inc.

621

65,019

1,409,808

Media

(1.6%)

Altice

USA,

Inc.

,

Class

 A(a)

650

2,223

Cable

One,

Inc.

15

10,530

Interpublic

Group

of

Cos.,

Inc.

(The)

1,479

55,078

Liberty

Broadband

Corp.

,

Class

 C(a)

423

34,559

New

York

Times

Co.

(The)

,

Class

 A

619

24,067

Omnicom

Group,

Inc.

708

66,793

Paramount

Global

,

Class

 B

2,268

50,599

Sirius

XM

Holdings,

Inc.

2,574

10,219

TEGNA,

Inc.

848

14,339

Trade

Desk,

Inc.

(The)

,

Class

 A(a)

1,399

85,213

353,620

Metals

&

Mining

(1.3%)

Commercial

Metals

Co.

624

30,514

MP

Materials

Corp.

(a)

855

24,102

Nucor

Corp.

756

116,779

Reliance

Steel

&

Aluminum

Co.

219

56,226

Steel

Dynamics,

Inc.

564

63,766

291,387

Multi-Utilities

(2.6%)

Ameren

Corp.

881

76,110

Black

Hills

Corp.

244

15,396

CMS

Energy

Corp.

1,039

63,774

Semi-Annual

Report

—

March

31,

2023

(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

Multi-Utilities

(cont’d)

Consolidated

Edison,

Inc.

1,111

$

106,289

DTE

Energy

Co.

684

74,925

NiSource,

Inc.

1,505

42,080

Public

Service

Enterprise

Group,

Inc.

1,575

98,359

WEC

Energy

Group,

Inc.

1,010

95,738

572,671

Oil,

Gas

&

Consumable

Fuels

(0.1%)

Enviva,

Inc.

97

2,801

New

Fortress

Energy,

Inc.

609

17,923

20,724

Paper

&

Forest

Products

(0.0%)(b)

Louisiana-Pacific

Corp.

207

11,221

Passenger

Airlines

(0.9%)

Alaska

Air

Group,

Inc.

(a)

442

18,546

American

Airlines

Group,

Inc.

(a)

2,237

32,996

Delta

Air

Lines,

Inc.

(a)

2,102

73,402

Southwest

Airlines

Co.

2,040

66,382

191,326

Personal

Care

Products

(0.1%)

Coty,

Inc.

,

Class

 A(a)

992

11,964

Olaplex

Holdings,

Inc.

(a)

364

1,554

13,518

Pharmaceuticals

(0.7%)

Catalent,

Inc.

(a)

543

35,681

Elanco

Animal

Health,

Inc.

(a)

1,530

14,382

Jazz

Pharmaceuticals

plc

(a)

192

28,095

Organon

&

Co.

795

18,699

Perrigo

Co.

plc

420

15,065

Royalty

Pharma

plc

,

Class

 A

1,164

41,939

153,861

Professional

Services

(3.0%)

Alight,

Inc.

,

Class

 A(a)

777

7,156

ASGN,

Inc.

(a)

185

15,294

Booz

Allen

Hamilton

Holding

Corp.

497

46,067

Broadridge

Financial

Solutions,

Inc.

370

54,231

Concentrix

Corp.

137

16,652

CoStar

Group,

Inc.

(a)

1,285

88,472

Dun

&

Bradstreet

Holdings,

Inc.

705

8,277

Equifax,

Inc.

400

81,136

ExlService

Holdings,

Inc.

(a)

101

16,345

Exponent,

Inc.

192

19,141

FTI

Consulting,

Inc.

(a)

129

25,458

Genpact

Ltd.

533

24,635

ManpowerGroup,

Inc.

192

15,846

Robert

Half

International,

Inc.

402

32,389

Science

Applications

International

Corp.

171

18,376

SS&C

Technologies

Holdings,

Inc.

694

39,190

TransUnion

735

45,673

TriNet

Group,

Inc.

(a)

143

11,527

Verisk

Analytics,

Inc.

501

96,122

661,987

Real

Estate

Management

&

Development

(0.6%)

CBRE

Group,

Inc.

,

Class

 A(a)

1,014

73,829

Howard

Hughes

Corp.

(The)

(a)

137

10,960

Shares

Value

Jones

Lang

LaSalle,

Inc.

(a)

176

$

25,606

Zillow

Group,

Inc.

,

Class

 C(a)

516

22,947

133,342

Semiconductors

&

Semiconductor

Equipment

(3.5%)

Allegro

MicroSystems,

Inc.

(a)

219

10,510

Amkor

Technology,

Inc.

319

8,300

Cirrus

Logic,

Inc.

(a)

175

19,142

Enphase

Energy,

Inc.

(a)

370

77,804

Entegris,

Inc.

470

38,545

First

Solar,

Inc.

(a)

278

60,465

GLOBALFOUNDRIES,

Inc.

(a)

236

17,034

Lattice

Semiconductor

Corp.

(a)

429

40,970

MKS

Instruments,

Inc.

200

17,724

Monolithic

Power

Systems,

Inc.

141

70,576

ON

Semiconductor

Corp.

(a)

1,337

110,062

Power

Integrations,

Inc.

176

14,897

Qorvo,

Inc.

(a)

314

31,893

Semtech

Corp.

(a)

200

4,828

Silicon

Laboratories,

Inc.

(a)

99

17,334

Skyworks

Solutions,

Inc.

501

59,108

SolarEdge

Technologies,

Inc.

(a)

155

47,112

Synaptics,

Inc.

(a)

123

13,671

Teradyne,

Inc.

491

52,787

Universal

Display

Corp.

138

21,408

Wolfspeed,

Inc.

(a)

391

25,395

759,565

Software

(5.1%)

Altair

Engineering,

Inc.

,

Class

 A(a)

163

11,754

ANSYS,

Inc.

(a)

274

91,187

AppLovin

Corp.

,

Class

 A(a)

359

5,654

Aspen

Technology,

Inc.

(a)

89

20,369

BILL

Holdings,

Inc.

(a)

322

26,127

Black

Knight,

Inc.

(a)

477

27,456

Blackline,

Inc.

(a)

173

11,617

Ceridian

HCM

Holding,

Inc.

(a)

461

33,754

Clear

Secure,

Inc.

,

Class

 A

239

6,255

Confluent,

Inc.

,

Class

 A(a)

451

10,856

Crowdstrike

Holdings,

Inc.

,

Class

 A(a)

669

91,827

Datadog,

Inc.

,

Class

 A(a)

814

59,145

DocuSign,

Inc.

(a)

628

36,612

Dolby

Laboratories,

Inc.

,

Class

 A

188

16,059

Dropbox,

Inc.

,

Class

 A(a)

850

18,377

Dynatrace,

Inc.

(a)

673

28,468

Elastic

NV

(a)

239

13,838

Fair

Isaac

Corp.

(a)

89

62,539

Five9,

Inc.

(a)

219

15,832

Gen

Digital,

Inc.

1,839

31,557

Guidewire

Software,

Inc.

(a)

256

21,005

HubSpot,

Inc.

(a)

149

63,884

Informatica,

Inc.

,

Class

 A(a)

117

1,919

Manhattan

Associates,

Inc.

(a)

195

30,196

NCR

Corp.

(a)

421

9,931

Paycom

Software,

Inc.

(a)

162

49,250

Paycor

HCM,

Inc.

(a)

151

4,005

Paylocity

Holding

Corp.

(a)

132

26,239

PTC,

Inc.

(a)

347

44,496

Qualtrics

International,

Inc.

,

Class

 A(a)

322

5,741

Semi-Annual

Report

—

March

31,

2023

(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

Software

(cont’d)

Qualys,

Inc.

(a)

113

$

14,692

Rapid7,

Inc.

(a)

184

8,448

RingCentral,

Inc.

,

Class

 A(a)

265

8,128

SentinelOne,

Inc.

,

Class

 A(a)

633

10,356

Smartsheet,

Inc.

,

Class

 A(a)

395

18,881

Splunk,

Inc.

(a)

473

45,351

Tenable

Holdings,

Inc.

(a)

340

16,153

Tyler

Technologies,

Inc.

(a)

131

46,458

Zoom

Video

Communications,

Inc.

,

Class

 A(a)

686

50,654

Zscaler,

Inc.

(a)

272

31,778

1,126,848

Specialty

Retail

(2.9%)

Advance

Auto

Parts,

Inc.

173

21,039

AutoNation,

Inc.

(a)

99

13,302

Bath

&

Body

Works,

Inc.

667

24,399

Best

Buy

Co.,

Inc.

578

45,240

Burlington

Stores,

Inc.

(a)

191

38,601

CarMax,

Inc.

(a)

462

29,697

Chewy,

Inc.

,

Class

 A(a)

275

10,280

Dick's

Sporting

Goods,

Inc.

168

23,838

Five

Below,

Inc.

(a)

159

32,749

Floor

&

Decor

Holdings,

Inc.

,

Class

 A(a)

305

29,957

GameStop

Corp.

,

Class

 A(a)

755

17,380

Gap,

Inc.

(The)

593

5,954

Lithia

Motors,

Inc.

79

18,085

Penske

Automotive

Group,

Inc.

76

10,778

Petco

Health

&

Wellness

Co.,

Inc.

(a)

439

3,951

RH

(a)

60

14,613

Ross

Stores,

Inc.

988

104,856

Tractor

Supply

Co.

322

75,683

Ulta

Beauty,

Inc.

(a)

149

81,305

Wayfair,

Inc.

,

Class

 A(a)

213

7,314

Williams-Sonoma,

Inc.

193

23,480

632,501

Technology

Hardware,

Storage

&

Peripherals

(1.1%)

Dell

Technologies,

Inc.

,

Class

 C

740

29,755

Hewlett

Packard

Enterprise

Co.

4,037

64,309

NetApp,

Inc.

680

43,418

Pure

Storage,

Inc.

,

Class

 A(a)

896

22,857

Seagate

Technology

Holdings

plc

649

42,912

Western

Digital

Corp.

(a)

992

37,369

240,620

Textiles,

Apparel

&

Luxury

Goods

(0.8%)

Capri

Holdings

Ltd.

(a)

362

17,014

Columbia

Sportswear

Co.

104

9,385

Deckers

Outdoor

Corp.

(a)

77

34,615

Hanesbrands,

Inc.

1,013

5,328

Levi

Strauss

&

Co.

,

Class

 A

252

4,594

PVH

Corp.

185

16,495

Ralph

Lauren

Corp.

118

13,767

Skechers

USA,

Inc.

,

Class

 A(a)

387

18,390

Tapestry,

Inc.

690

29,746

Under

Armour,

Inc.

,

Class

 A(a)

554

5,258

Shares

Value

VF

Corp.

1,077

$

24,674

179,266

Trading

Companies

&

Distributors

(1.7%)

Air

Lease

Corp.

358

14,095

Beacon

Roofing

Supply,

Inc.

(a)

144

8,474

Core

&

Main,

Inc.

,

Class

 A(a)

249

5,752

Fastenal

Co.

1,671

90,134

MSC

Industrial

Direct

Co.,

Inc.

,

Class

 A

159

13,356

SiteOne

Landscape

Supply,

Inc.

(a)

131

17,930

United

Rentals,

Inc.

216

85,484

Univar

Solutions,

Inc.

(a)

559

19,582

WESCO

International,

Inc.

130

20,090

WW

Grainger,

Inc.

132

90,923

365,820

Water

Utilities

(0.6%)

American

Water

Works

Co.,

Inc.

592

86,722

Essential

Utilities,

Inc.

975

42,559

129,281

Total

Common

Stocks

(Cost

$22,293,998)

21,897,860

Short-Term

Investment

(0.3%)

Investment

Company

(0.3%

)

Morgan

Stanley

Institutional

Liquidity

Funds

-

Government

Portfolio

-

Institutional

Class

(See

Note

G)

(Cost

$73,575)

73,575

73,575

Total

Investments

(99.9%)

(Cost

$22,367,573)

(c)

21,971,435

Other

Assets

in

Excess

of

Liabilities

(0.1%)

15,675

NET

ASSETS

(100.0%)

$21,987,110

(a)

Non-income

producing

security.

(b)

Amount

is

less

than

0.05%.

(c)

At

March

31,

2023,

the

aggregate

cost

for

federal

income

tax

purposes

is

$22,367,573.

The

aggregate

gross

unrealized

appreciation

is

$847,529

and

the

aggregate

gross

unrealized

depreciation

is

$1,243,667,

resulting

in

net

unrealized

depreciation

of

$396,138.

Portfolio

Composition

Classification  

Percentage

of

Total

Investments

Other*

77.8

%

Machinery

6.4

Capital

Markets

5.6

Software

5.1

Health

Care

Equipment

&

Supplies

5.1

Total

Investments

100.0

%

*

Industries

and/or

investment

types

representing

less

than

5%

of

total

investments.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

US

Mid-Cap

Core

Responsible

Index

ETF

11

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Statement

of

Assets

and

Liabilities

March

31,

2023

Assets:

Investments

in

Securities

of

Unaffiliated

Issuers,

at

Value

(Cost

$22,293,998)

$

21,897,860

Investment

in

Security

of

Affiliated

Issuer,

at

Value

(Cost

$73,575)

73,575

Total

Investments

in

Securities,

at

Value

(Cost

$22,367,573)

21,971,435

Dividends

Receivable

18,418

Total

Assets

21,989,853

Liabilities:

Payable

for

Management

Fee

2,743

Total

Liabilities

2,743

Net

Assets

$

21,987,110

Net

Assets

Consist

of:

Paid-in-Capital

$

22,500,000

Total

Distributable

Earnings

(512,890)

Net

Assets

$

21,987,110

Shares

Outstanding

$0.001

Par

Value

(unlimited

shares

authorized)

450,000

Net

Asset

Value

Per

Share

$

48.86

Semi-Annual

Report

—

March

31,

2023

(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

Operations

Period

from

January

30,

2023

^

to

March

31,

2023

Investment

Income:

Dividends

from

Securities

of

Unaffiliated

Issuers

(Net

of

$86

of

Foreign

Taxes

Withheld)

$

63,782

Dividends

from

Security

of

Affiliated

Issuer

(Note

G)

494

Total

Investment

Income

64,276

Expenses:

Management

Fee

(Note

B)

5,500

Total

Expenses

5,500

Rebate

from

Morgan

Stanley

Affiliate

(Note

G)

(17)

Net

Expenses

5,483

Net

Investment

Income

58,793

Realized

Gain

(Loss):

Investments

Sold

(133,809)

Net

Realized

Loss

(133,809)

Change

in

Unrealized

Appreciation

(Depreciation):

Investments

(396,138)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

(396,138)

Net

Realized

Loss

and

Change

in

Unrealized

Appreciation

(Depreciation)

(529,947)

Net

Decrease

in

Net

Assets

Resulting

from

Operations

$

(471,154)

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(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

Changes

in

Net

Assets

Period

from

January

30,

2023

^

to

March

31,

2023

Increase

(Decrease)

in

Net

Assets:

Operations:

Net

Investment

Income

$

58,793

Net

Realized

Loss

(133,809)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

(396,138)

Net

Decrease

in

Net

Assets

Resulting

from

Operations

(471,154)

Dividends

and

Distributions

to

Shareholders:

Dividends

and

Distributions

(41,736)

Total

Dividends

and

Distributions

to

Shareholders

(41,736)

Capital

Share

Transactions:

Subscribed

20,000,000

Subscribed

In-Kind

2,500,000

Net

Increase

in

Net

Assets

Resulting

from

Capital

Share

Transactions

22,500,000

Total

Increase

in

Net

Assets

21,987,110

Net

Assets:

Beginning

of

Period

–

End

of

Period

$

21,987,110

Capital

Share

Transactions:

Beginning

of

Period

–

Shares

Subscribed

400,000

Shares

Subscribed

In-Kind

50,000

Shares

Outstanding,

End

of

Period

Net

Increase

in

450,000

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Financial

Highlights

Calvert

US

Mid-Cap

Core

Responsible

Index

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

January

30,

2023

(1)

to

March

31,

2023

Net

Asset

Value,

Beginning

of

Period

$50.00‌

Income

(Loss)

from

Investment

Operations:

—

Net

Investment

Income

(2)

0.13‌

Net

Realized

and

Unrealized

Loss

(1.18‌)

Total

from

Investment

Operations

(1.05‌)

Distributions

from

and/or

in

Excess

of:

—

Net

Investment

Income

(0.09‌)

Net

Asset

Value,

End

of

Period

$48.86‌

Total

Return

(3)

(2.09‌)%

(4)

Ratios

to

Average

Net

Assets

and

Supplemental

Data:

$21,987

Net

Assets,

End

of

Period

(Thousands)

$21,987‌

Ratio

of

Expenses

0.15‌%

(5)(6)

Ratio

of

Net

Investment

Income

1.58‌%

(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.

15

Semi-Annual

Report

—

March

31,

2023

(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

reporting guidance

Accounting

Standard

Codification

("ASC")

Topic

946.

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

rele-

vant

exchanges.

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

security

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

market

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

relevant

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

repu-

table

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

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

or

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

brokers/dealers;

(4)

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;

(5)

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

Standards

Board

(“FASB”)

ASC

820,

“Fair

Value

Mea-

surement”

(“ASC

820”),

defines

fair

value

as

the

price

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

16

Morgan

Stanley

ETF

Trust

that

would

be

received

to

sell

an

asset

or

pay to

transfer

a

liability

in

an orderly

transaction

between

market

par-

ticipants

at

the

measurement

date. ASC

820

establishes

a

three tier

hierarchy

to

distinguish

between

(1)

inputs

that

reflect

the

assumptions

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

participants

would

use

in

valuing

an

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances

(unobservable

inputs)

and

to

establish

classification

of

fair

value

measurements

for

disclosure

purposes.

Various

inputs

are

used

in

determin-

ing

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,

2023:

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

Aerospace

&

Defense

$

138

$

—

$

—

$

138

Air

Freight

&

Logistics

123

—

—

123

Automobile

Components

214

—

—

214

Automobiles

65

—

—

65

Banks

713

—

—

713

Beverages

21

—

—

21

Biotechnology

680

—

—

680

Broadline

Retail

140

—

—

140

Building

Products

633

—

—

633

Capital

Markets

1,228

—

—

1,228

Chemicals

472

—

—

472

Commercial

Services

&

Supplies

225

—

—

225

Communications

Equipment

364

—

—

364

Construction

&

Engineering

231

—

—

231

Construction

Materials

75

—

—

75

Consumer

Finance

180

—

—

180

Consumer

Staples

Distribution

&

Retail

324

—

—

324

Containers

&

Packaging

349

—

—

349

Distributors

150

—

—

150

Diversified

Consumer

Services

82

—

—

82

Diversified

Telecommunication

Services

31

—

—

31

Electric

Utilities

380

—

—

380

Electrical

Equipment

435

—

—

435

Electronic

Equipment,

Instruments

&

Components

639

—

—

639

Energy

Equipment

&

Services

91

—

—

91

Entertainment

219

—

—

219

Financial

Services

195

—

—

195

Food

Products

471

—

—

471

Gas

Utilities

96

—

—

96

Ground

Transportation

286

—

—

286

Health

Care

Equipment

&

Supplies

1,119

—

—

1,119

Health

Care

Providers

&

Services

355

—

—

355

Health

Care

Technology

105

—

—

105

Hotels,

Restaurants

&

Leisure

606

—

—

606

Household

Durables

408

—

—

408

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

17

Morgan

Stanley

ETF

Trust

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

indemnifications.

The

Trust’s

max-

imum

exposure

under

these

arrangements

is

unknown.

However,

the Trust

has

not

had

prior

claims

or

losses

pursuant

to

these

contracts

and

expects

the

risk

of

loss

to

be

remote.

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,

Income

and

Expenses:

 Se-

curity

transactions

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

deter-

mined

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

dividends)

net

of

applicable

withholding

taxes.

Non-cash

dividends

received

in

the

form

of

stock,

if

any,

are

recognized

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

0.15% 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

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

ongo-

ing

services

to

shareholders

of

the

Fund

and

the

maintenance

of

shareholder

accounts

in

an

amount

up

to

0.25%

of

its

aver-

age

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)

Common

Stocks

(cont’d)

Household

Products

$

120

$

—

$

—

$

120

Independent

Power

and

Renewable

Electricity

Producers

105

—

—

105

Insurance

1,030

—

—

1,030

Interactive

Media

&

Services

153

—

—

153

IT

Services

564

—

—

564

Leisure

Products

59

—

—

59

Life

Sciences

Tools

&

Services

776

—

—

776

Machinery

1,410

—

—

1,410

Media

354

—

—

354

Metals

&

Mining

291

—

—

291

Multi-Utilities

573

—

—

573

Oil,

Gas

&

Consumable

Fuels

21

—

—

21

Paper

&

Forest

Products

11

—

—

11

Passenger

Airlines

191

—

—

191

Personal

Care

Products

14

—

—

14

Pharmaceuticals

154

—

—

154

Professional

Services

662

—

—

662

Real

Estate

Management

&

Development

133

—

—

133

Semiconductors

&

Semiconductor

Equipment

760

—

—

760

Software

1,127

—

—

1,127

Specialty

Retail

632

—

—

632

Technology

Hardware,

Storage

&

Peripherals

241

—

—

241

Textiles,

Apparel

&

Luxury

Goods

179

—

—

179

Trading

Companies

&

Distributors

366

—

—

366

Water

Utilities

129

—

—

129

Total

Common

Stocks

21,898

—

—

21,898

Short-Term

Investment

Investment

Company

73

—

—

73

Total

Assets

$21,971

$—

$—

$21,971

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

18

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

securi-

ties

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

Funds’

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

you

buy

or

sell

Fund

shares

on

the

secondary

market,

you

will

pay

or

receive

the

market

price,

which

may

be

higher

or

lower

than

NAV.

Your

transaction

will

be

priced

at

NAV

if

you

purchase

or

redeem

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.

Transaction

fees

assessed

during

the

period

are

in-

cluded

in

the

proceeds

or

cost

from

shares

issued

or

redeemed

on

the

Statements

of

Changes

in

Net

Assets.

G.

Security

Transactions

and

Transactions

with

Affil-

iates:

For

the

period ended

March

31,

2023 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 $20,793,418

and

$781,958,

respec-

tively.

There

were

no

purchases

and

sales

of

long-term

U.S.

Government

securities

for

the

period ended

March

31,

2023.

Purchases

related

to

In-Kind

transactions

were

$2,416,414

for

period

end.

There

were

no

sales

related

to

In-Kind

transactions

for

the

period

ended

March

31,

2023.

The

Fund

invests

in

the

Institutional

Class

of

the

Morgan

Stanley

Institutional

Liquidity

Funds

—

Government

Portfolio

(the

“Liquidity

Funds”),

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

Funds.

For

the

period ended

March

31,

2023, management

fees

paid

were

reduced

by $17 relating

to

the

Fund’s

investment

in

the

Liquidity

Funds. 

A

summary

of

the

Fund’s

transactions

in

shares

of

affiliated

investments

during

the

period ended

March

31,

2023 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

income.

Accordingly,

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

Affiliated

Investment

Company

Value

January

30,

2023

Purchases

at

Cost

Proceeds

from

Sales

Dividend

Income

Liquidity

Funds

$

–

$

150,685

$

77,110

$

494

Affiliated

Investment

Company

(cont'd)

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

March

31,

2023

Liquidity

Funds  

$

–

$

–

$

73,575

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

19

Morgan

Stanley

ETF

Trust

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:

An

investment

in

the

Fund

is

based

on

the

values

of

the

Fund's

investments,

which

may

change

due

to

economic

and

other

events

that

affect

markets

generally,

as

well

as

those

that

affect

particular

regions,

countries,

indus-

tries,

companies

or

governments.

Social,

political,

economic

and

other

conditions

and

events,

such

as

war,

natural

disasters,

health

emergencies

(e.g.,

epidemics

and

pandemics),

terrorism,

conflicts,

social

unrest,

recessions,

inflation,

rapid

interest

rate

changes

and

supply

chain

disruptions,

may

occur

and

could

significantly

impact

issuers,

industries,

governments

and

other

systems,

including

the

financial

markets

and

global

economy.

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

be

sudden

and

significant

and

may

negatively

impact

broad

segments

of

businesses

and

populations

and

have

a

significant

and

rapid

negative

impact

on

the

performance

of

and/or

income

or

yield

from

the

Fund's

investments

and

exacerbate

pre-existing

risks

to

the

Fund.

For

example,

the

extent

of

the

impact

of

a

public

health

emergency

depends

on

future

developments,

including

(i)

the

duration

and

spread

of

the

public

health

emergency,

(ii)

the

restrictions

and

advisories,

(iii)

the

effects

on

the

financial

markets,

(iv)

government

and

regulatory

responses,

and

(v)

the

effects

on

the

economy

overall

as

a

result

of

developments

such

as

disruption

to

consumer

demand,

economic

output

and

supply

chains.

The

occurrence,

duration

and

extent

of

these

or

other

types

of

adverse

economic

and

market

conditions

and

uncertainty

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

developments

and

the

extent

to

which

the

associated

conditions

impact

the

Fund

will

also

depend

on

other

future

developments,

which

are

highly

un-

certain,

difficult

to

accurately

predict

and

subject

to

change

at

any

time.

The

financial

performance

of

the

Fund's

investments

(and,

in

turn,

the

Fund's

investment

results)

as

well

as

their

liquidity

may

be

adversely

affected

because

of

these

and

similar

types

of

factors

and

developments.

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

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

20

Morgan

Stanley

ETF

Trust

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.

To

the

extent

that

these

intermediaries

exit

the

business

or

are

unable

to

or

choose

not

to

proceed

with

creation

and/or

redemption

orders

with

respect

to

the

Fund

and

no

other

authorized

participant

creates

or

redeems,

shares

may

trade

at

a

discount

to

net

asset

value

(“NAV”)

and

possibly

face

trading

halts

and/or

delisting. 

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

other

factors,

may

result

in

the

shares

trading

significantly

above

(at

a

premium)

or

below

(at

a

discount)

to

NAV

or

to

the

intraday

value

of

the

Fund’s

holdings

(and,

as

a

result,

an

investor

may

pay

more

for,

or

receive

less

than,

the

underlying

value

of

the

shares,

respectively).

Buying

or

selling

shares

in

the

secondary

market

may

require

paying

brokerage

commissions

or

other

charges

imposed

by

brokers

as

determined

by

that

broker.

Brokerage

commissions

are

often

a

fixed

amount

and

may

be

a

significant

proportional

cost

when

seeking

to

buy

or

sell

relatively

small

amounts

of

shares.

In

addition,

the

market

price

of

shares,

like

the

price

of

any

exchange-traded

security,

includes

a

“bid-ask

spread”

charged

by

the

market

makers

or

other

participants

that

trade

the

particular

security.

The

spread

of

a

Fund’s

shares

varies

over

time

based

on

the

Fund’s

trading

volume

and

market

liquidity

and

may

increase

if

the

Fund’s

trading

volume,

the

spread

of

the

Fund’s

underlying

securities,

or

market

liquidity

decrease. 

Large

Shareholder

Transaction

Risk:

The

Fund

may

experience

adverse

effects

when

certain

shareholders

purchase

or

redeem

large

amounts

of

shares

of

a

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

a

Fund’s

performance

to

the

extent

that

a

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

a

Fund’s

current

expenses

being

allocated

over

a

smaller

asset

base,

leading

to

an

increase

in

a

Fund’s

expense

ratio.

Although

large

shareholder

transactions

may

be

more

frequent

under

certain

circumstanc-

es,

a

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,

2023

(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

under

the

investment

management

agreement

(the

“Management

Agreement”),

including

portfolio

management,

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,

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

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,

2023

(unaudited)

Investment

Advisory

Agreement

Approval

(cont’d)

22

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.

As

part

of

the

Board’s

review,

the

Board

received

information

from

management

on

the

impact

of

the

COVID-19

pandemic

on

the

firm

generally

and

the

Adviser

and

the

Fund

in

particular

including,

among

other

information,

the

pandemic’s

current

and

expected

impact

on

the

Fund’s

performance

and

operations.

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.

23

Semi-Annual

Report

—

March

31,

2023

(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

1-2,

2023,

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,

2022,

through

December

31,

2022,

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

portfolios

of

the

Trust

during

that

period.

However,

during

the

period

ended

March

31,

2023,

the

Program

applied

to

the

Fund.

24

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

April

2021

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

investment

management

affiliates’

everyday

business

purposes

—

information

about

your

transactions,

experiences,

and

creditworthiness

Yes

Yes

For

our

affiliates’

everyday

business

purposes

—

information

about

your

transactions

and

experiences

Yes

No

For

our

affiliates’

everyday

business

purposes

—

information

about

your

creditworthiness

No

We

don’t

share

For

our

investment

management

affiliates

to

market

to

you

Yes

Yes

For

our

affiliates

to

market

to

you

No

We

don’t

share

For

non-affiliates

to

market

to

you

No

We

don’t

share

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

25

April

2021

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

Investment

Management

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.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

26

April

2021

Morgan

Stanley

ETF

Trust

Definitions

Investment

Management

Affiliates

MSIM

Investment

Management

Affiliates

include

registered

investment

advisers,

registered

broker-dealers,

and

registered

and

unregistered

funds

in

the

Investment

Management

Division.

Investment

Management

Affiliates

does

not

include

entities

associated

with

Morgan

Stanley

Wealth

Management,

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

Affiliates

Companies

related

by

common

ownership

or

control.

They

can

be

financial

and

non-financial

companies.

Our

affiliates

include

companies

with

a

Morgan

Stanley

name

and

financial

companies

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

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

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,

2023

(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

Joseph

J.

Kearns

Michael

F.

Klein

Patricia

A

Maleski

W.

Allen

Reed,

Chair

of

the

Board

Adviser

Morgan

Stanley

Investment

Management

Inc.

522

Fifth

Avenue

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

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

Perkins

Coie

LLP

1155

Avenue

of

the

Americas

22nd

Floor

New

York,

New

York

10036

Independent

Registered

Public

Accounting

Firm

Ernst

&

Young

LLP

200

Clarendon

Street

Boston,

MA

02116

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.

The

Fund

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

are

available

on

the

Fund's

public

website,

www.

calvert.com.

Proxy

Voting

Policies

and

Procedures

and

Proxy

Voting

Record

You

may

obtain

a

copy

of

the

Trust’s

Proxy

Voting

Policy

and

Procedures

and

information

regarding

how

the

Trust

voted

proxies

relating

to

portfolio

securities

during

the

most

recent

twelve-month

period

ended

June

30,

without

charge,

on

our

web

site

at

www.calvert.com.

This

information

is

also

available

on

the

SEC’s

website

at

www.sec.gov.

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,

which

describes

in

detail

the

fund’s

investment

policies,

risks,

fees

and

expenses.

Please

read

the

prospectus

carefully

before

you

invest

or

send

money.

For

additional

informa-

tion,

including

information

regarding

the

investments

comprising

the

Fund,

please

visit

our

website

at

www.morganstanley.com/im/shareholderreports.

ETFCALUSMIDCAPCRISAN

5648194

EXP

05.31.24

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.

522

Fifth

Avenue

New

York,

New

York

10036 

©

2023

Morgan

Stanley.

Morgan

Stanley

Distribution,

Inc. 

Morgan

Stanley

ETF

Trust

Calvert

US

Select

Equity

ETF

NYSE

Arca:

CVSE

Semi-Annual

Report

March

31,

2023

Morgan

Stanley

ETF

Trust

Semi-Annual

Report

—

March

31,

2023

(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.calvert.com

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

Performance

Summary

.....................................................................................

3

Portfolio

of

Investments

.....................................................................................

4

Statement

of

Assets

and

Liabilities

..........................................................................

7

Statement

of

Operations

....................................................................................

8

Statement

of

Changes

in

Net

Assets

........................................................................

9

Financial

Highlights

.........................................................................................

10

Notes

to

Financial

Statements

...............................................................................

11

Investment

Advisory

Agreement

Approval

....................................................................

17

Liquidity

Risk

Management

Program

.........................................................................

19

U.S.

Customer

Privacy

Notice

...............................................................................

20

Trustees

and

Officers

Information

...........................................................................

23

2

Semi-Annual

Report

—

March

31,

2023

(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

period

beginning

January

30,

2023

(when

the

Fund

commenced

operations)

and

ended

March

31,

2023.

Morgan

Stanley

Investment

Management

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

challenges

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

2023

3

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Performance

Summary

Calvert

US

Select

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/shareholderreports.

Investment

return

and

principal

value

will

fluctuate

so

that

Fund

shares,

when

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

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)

Cumulative

Total

Return

for

the

period

Ended

March

31,

2023

Since

Inception

(2)

Calvert

US

Select

Equity

ETF

-

NAV

(3)

1.32%

Calvert

US

Select

Equity

ETF

-

Market

Price

(3)

1.28%

Russell

1000

®

Index

2.27%

(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

Indexes

refer

to

the

inception

date

of

the

Fund,

not

the

inception

of

the

Index.

(3)

Commenced

operations

on

January

30,

2023.

Expense

Example

Beginning

Account

Value

(1/30/23)

Actual

Ending

Account

Value

(3/31/23)

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

$1,013.20

$1,007.87

$0.49

$0.49

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

61/365

(to

reflect

the

actual

days

in

the

period).

**

Annualized.

^

The

Fund

commenced

operations

on

January

30,

2023.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

Calvert

US

Select

Equity

ETF

4

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Shares

Value

Common

Stocks

(99.7%)

Aerospace

&

Defense

(0.3%)

Hexcel

Corp.

878

$

59,923

Air

Freight

&

Logistics

(0.3%)

Expeditors

International

of

Washington,

Inc.

541

59,575

Automobile

Components

(0.4%)

Aptiv

plc

(a)

516

57,890

BorgWarner,

Inc.

411

20,184

78,074

Banks

(2.5%)

Citizens

Financial

Group,

Inc.

893

27,120

Comerica,

Inc.

947

41,119

Fifth

Third

Bancorp

2,172

57,862

Huntington

Bancshares,

Inc.

5,224

58,509

KeyCorp

903

11,306

PNC

Financial

Services

Group,

Inc.

(The)

518

65,838

Regions

Financial

Corp.

2,106

39,087

Truist

Financial

Corp.

5,345

182,264

Webster

Financial

Corp.

1,423

56,095

539,200

Biotechnology

(3.1%)

Alnylam

Pharmaceuticals,

Inc.

(a)

564

112,981

Amgen,

Inc.

1,144

276,562

Exact

Sciences

Corp.

(a)

879

59,605

Gilead

Sciences,

Inc.

2,822

234,141

683,289

Broadline

Retail

(0.3%)

Etsy,

Inc.

(a)

516

57,446

Building

Products

(1.3%)

Johnson

Controls

International

plc

2,229

134,230

Owens

Corning

214

20,501

Trane

Technologies

plc

609

112,044

Trex

Co.,

Inc.

(a)

146

7,106

273,881

Capital

Markets

(5.6%)

BlackRock,

Inc.

386

258,280

Charles

Schwab

Corp.

(The)

2,293

120,107

CME

Group,

Inc.

840

160,877

FactSet

Research

Systems,

Inc.

229

95,056

Franklin

Resources,

Inc.

549

14,790

Intercontinental

Exchange,

Inc.

1,590

165,821

LPL

Financial

Holdings,

Inc.

330

66,792

Morningstar,

Inc.

264

53,600

S&P

Global,

Inc.

497

171,351

State

Street

Corp.

932

70,543

T

Rowe

Price

Group,

Inc.

387

43,692

1,220,909

Chemicals

(1.4%)

Ecolab,

Inc.

822

136,065

Mosaic

Co.

(The)

1,236

56,708

Sherwin-Williams

Co.

(The)

462

103,844

296,617

Commercial

Services

&

Supplies

(0.2%)

MSA

Safety,

Inc.

381

50,863

Shares

Value

Communications

Equipment

(1.1%)

Ciena

Corp.

(a)

234

$

12,290

Cisco

Systems,

Inc.

3,327

173,919

Juniper

Networks,

Inc.

375

12,907

Lumentum

Holdings,

Inc.

(a)

163

8,804

Motorola

Solutions,

Inc.

138

39,486

247,406

Consumer

Finance

(1.3%)

Ally

Financial,

Inc.

1,159

29,543

American

Express

Co.

692

114,145

Capital

One

Financial

Corp.

550

52,888

Discover

Financial

Services

455

44,972

Synchrony

Financial

1,331

38,706

Upstart

Holdings,

Inc.

(a)

452

7,182

287,436

Consumer

Staples

Distribution

&

Retail

(0.8%)

Target

Corp.

1,062

175,899

Containers

&

Packaging

(0.8%)

Ball

Corp.

1,897

104,544

Crown

Holdings,

Inc.

792

65,506

170,050

Diversified

Consumer

Services

(0.3%)

Bright

Horizons

Family

Solutions,

Inc.

(a)

774

59,590

Diversified

Telecommunication

Services

(1.0%)

Verizon

Communications,

Inc.

5,786

225,018

Electric

Utilities

(1.2%)

Eversource

Energy

1,572

123,025

NextEra

Energy,

Inc.

1,917

147,762

270,787

Electrical

Equipment

(2.4%)

Acuity

Brands,

Inc.

200

36,546

Eaton

Corp.

plc

1,768

302,929

Emerson

Electric

Co.

1,064

92,717

Rockwell

Automation,

Inc.

300

88,035

520,227

Electronic

Equipment,

Instruments

&

Components

(0.2%)

Keysight

Technologies,

Inc.

(a)

247

39,886

Entertainment

(1.7%)

Netflix,

Inc.

(a)

444

153,393

Walt

Disney

Co.

(The)

(a)

2,169

217,182

370,575

Financial

Services

(2.7%)

Fidelity

National

Information

Services,

Inc.

522

28,360

Mastercard,

Inc.

,

Class

 A

617

224,224

MGIC

Investment

Corp.

1,098

14,735

PayPal

Holdings,

Inc.

(a)

844

64,093

Visa,

Inc.

,

Class

 A

1,149

259,054

590,466

Food

Products

(2.7%)

General

Mills,

Inc.

3,696

315,860

J.M.

Smucker

Co.

(The)

1,068

168,071

McCormick

&

Co.,

Inc.

(Non-Voting)

1,329

110,586

594,517

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Portfolio

of

Investments

(cont’d)

Calvert

US

Select

Equity

ETF

5

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Shares

Value

Ground

Transportation

(0.5%)

JB

Hunt

Transport

Services,

Inc.

286

$

50,182

Ryder

System,

Inc.

580

51,759

101,941

Health

Care

Equipment

&

Supplies

(2.4%)

Edwards

Lifesciences

Corp.

(a)

1,301

107,632

Hologic,

Inc.

(a)

968

78,118

IDEXX

Laboratories,

Inc.

(a)

208

104,017

ResMed,

Inc.

483

105,772

STERIS

plc

484

92,579

Tandem

Diabetes

Care,

Inc.

(a)

646

26,234

514,352

Health

Care

Providers

&

Services

(0.8%)

Humana,

Inc.

343

166,513

Health

Care

REITs

(0.1%)

Ventas,

Inc.

632

27,397

Hotel

&

Resort

REITs

(0.1%)

Host

Hotels

&

Resorts,

Inc.

832

13,720

Hotels,

Restaurants

&

Leisure

(1.9%)

Starbucks

Corp.

1,643

171,086

Vail

Resorts,

Inc.

644

150,490

Yum

China

Holdings,

Inc.

1,260

79,871

401,447

Household

Durables

(0.1%)

Tempur

Sealy

International,

Inc.

512

20,219

Household

Products

(0.9%)

Church

&

Dwight

Co.,

Inc.

279

24,666

Clorox

Co.

(The)

531

84,026

Colgate-Palmolive

Co.

1,241

93,261

201,953

Independent

Power

and

Renewable

Electricity

Producers

(0.1%)

AES

Corp.

(The)

1,244

29,956

Industrial

REITs

(0.9%)

Prologis,

Inc.

1,616

201,628

Insurance

(4.2%)

Allstate

Corp.

(The)

187

20,721

Assurant,

Inc.

88

10,566

Hartford

Financial

Services

Group,

Inc.

(The)

546

38,051

Marsh

&

McLennan

Cos.,

Inc.

872

145,232

MetLife,

Inc.

4,051

234,715

Principal

Financial

Group,

Inc.

2,011

149,458

Prudential

Financial,

Inc.

1,437

118,897

Reinsurance

Group

of

America,

Inc.

451

59,875

RenaissanceRe

Holdings

Ltd.

40

8,014

Travelers

Cos.,

Inc.

(The)

796

136,442

921,971

Interactive

Media

&

Services

(4.0%)

Alphabet,

Inc.

,

Class

 A(a)

8,391

870,398

IT

Services

(1.5%)

Accenture

plc

,

Class

 A

755

215,787

Akamai

Technologies,

Inc.

(a)

457

35,783

Okta,

Inc.

(a)

458

39,498

Twilio,

Inc.

,

Class

 A(a)

261

17,390

Shares

Value

VeriSign,

Inc.

(a)

120

$

25,360

333,818

Leisure

Products

(0.4%)

Hasbro,

Inc.

1,064

57,126

Mattel,

Inc.

(a)

1,290

23,749

80,875

Life

Sciences

Tools

&

Services

(2.0%)

Agilent

Technologies,

Inc.

1,005

139,032

Mettler-Toledo

International,

Inc.

(a)

67

102,524

Repligen

Corp.

(a)

275

46,299

Waters

Corp.

(a)

208

64,403

West

Pharmaceutical

Services,

Inc.

260

90,082

442,340

Machinery

(2.8%)

Caterpillar,

Inc.

716

163,849

Cummins,

Inc.

425

101,524

Deere

&

Co.

392

161,849

Illinois

Tool

Works,

Inc.

139

33,840

Parker-Hannifin

Corp.

239

80,330

Pentair

plc

233

12,878

Stanley

Black

&

Decker,

Inc.

315

25,383

Xylem,

Inc.

333

34,865

614,518

Media

(1.0%)

Interpublic

Group

of

Cos.,

Inc.

(The)

2,554

95,111

Omnicom

Group,

Inc.

1,362

128,491

223,602

Metals

&

Mining

(0.7%)

Nucor

Corp.

972

150,145

Mortgage

Real

Estate

Investment

Trusts

(REITs)

(0.3%)

Annaly

Capital

Management,

Inc.

3,675

70,229

Multi-Utilities

(0.2%)

CMS

Energy

Corp.

631

38,731

Office

REITs

(0.0%)(b)

Boston

Properties,

Inc.

160

8,659

Personal

Care

Products

(0.7%)

Estee

Lauder

Cos.,

Inc.

(The)

,

Class

 A

608

149,848

Pharmaceuticals

(2.5%)

Merck

&

Co.,

Inc.

5,202

553,441

Professional

Services

(1.3%)

Automatic

Data

Processing,

Inc.

452

100,629

FTI

Consulting,

Inc.

(a)

285

56,245

Genpact

Ltd.

319

14,744

ManpowerGroup,

Inc.

367

30,288

Robert

Half

International,

Inc.

245

19,740

Verisk

Analytics,

Inc.

284

54,488

276,134

Real

Estate

Management

&

Development

(0.3%)

CBRE

Group,

Inc.

,

Class

 A(a)

172

12,524

Howard

Hughes

Corp.

(The)

(a)

80

6,400

Jones

Lang

LaSalle,

Inc.

(a)

321

46,702

65,626

Semi-Annual

Report

—

March

31,

2023

(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

Residential

REITs

(0.2%)

Equity

Residential

724

$

43,440

UDR,

Inc.

147

6,036

49,476

Retail

REITs

(1.3%)

Brixmor

Property

Group,

Inc.

560

12,051

Kimco

Realty

Corp.

874

17,069

Realty

Income

Corp.

2,799

177,233

Simon

Property

Group,

Inc.

584

65,391

271,744

Semiconductors

&

Semiconductor

Equipment

(5.9%)

Advanced

Micro

Devices,

Inc.

(a)

1,353

132,608

Applied

Materials,

Inc.

836

102,686

First

Solar,

Inc.

(a)

374

81,345

Intel

Corp.

3,206

104,740

KLA

Corp.

120

47,900

Lam

Research

Corp.

109

57,783

Micron

Technology,

Inc.

1,032

62,271

NVIDIA

Corp.

1,693

470,265

NXP

Semiconductors

NV

273

50,908

ON

Semiconductor

Corp.

(a)

486

40,007

Texas

Instruments,

Inc.

688

127,975

Wolfspeed,

Inc.

(a)

157

10,197

1,288,685

Software

(13.0%)

Adobe,

Inc.

(a)

373

143,743

Atlassian

Corp.

,

Class

 A(a)

327

55,973

Autodesk,

Inc.

(a)

349

72,648

Cadence

Design

Systems,

Inc.

(a)

417

87,608

Gen

Digital,

Inc.

2,061

35,367

HubSpot,

Inc.

(a)

134

57,452

Intuit,

Inc.

355

158,270

Microsoft

Corp.

5,751

1,658,013

Nutanix,

Inc.

,

Class

 A(a)

1,226

31,864

Paylocity

Holding

Corp.

(a)

55

10,933

Salesforce,

Inc.

(a)

926

184,996

ServiceNow,

Inc.

(a)

316

146,851

Splunk,

Inc.

(a)

336

32,216

Synopsys,

Inc.

(a)

121

46,736

VMware,

Inc.

,

Class

 A(a)

230

28,715

Workday,

Inc.

,

Class

 A(a)

304

62,788

2,814,173

Specialized

REITs

(1.5%)

American

Tower

Corp.

959

195,962

Equinix,

Inc.

22

15,863

Extra

Space

Storage,

Inc.

64

10,428

Iron

Mountain,

Inc.

1,796

95,026

317,279

Specialty

Retail

(5.4%)

AutoZone,

Inc.

(a)

36

88,493

Best

Buy

Co.,

Inc.

777

60,816

CarMax,

Inc.

(a)

284

18,256

Dick's

Sporting

Goods,

Inc.

481

68,249

Gap,

Inc.

(The)

1,643

16,496

Home

Depot,

Inc.

(The)

967

285,381

Lowe's

Cos.,

Inc.

823

164,575

Shares

Value

O'Reilly

Automotive,

Inc.

(a)

91

$

77,257

RH

(a)

82

19,971

TJX

Cos.,

Inc.

(The)

916

71,778

Tractor

Supply

Co.

300

70,512

Ulta

Beauty,

Inc.

(a)

258

140,783

Williams-Sonoma,

Inc.

732

89,055

1,171,622

Technology

Hardware,

Storage

&

Peripherals

(8.1%)

Apple,

Inc.

9,913

1,634,654

Dell

Technologies,

Inc.

,

Class

 C

306

12,304

Hewlett

Packard

Enterprise

Co.

2,692

42,883

HP,

Inc.

2,417

70,939

1,760,780

Textiles,

Apparel

&

Luxury

Goods

(1.4%)

Capri

Holdings

Ltd.

(a)

490

23,030

Lululemon

Athletica,

Inc.

(a)

323

117,633

NIKE,

Inc.

,

Class

 B

977

119,819

Ralph

Lauren

Corp.

119

13,884

Tapestry,

Inc.

770

33,195

307,561

Trading

Companies

&

Distributors

(0.6%)

WW

Grainger,

Inc.

177

121,919

Water

Utilities

(1.0%)

American

Water

Works

Co.,

Inc.

1,458

213,582

Total

Common

Stocks

(Cost

$21,454,932)

21,667,916

Short-Term

Investment

(0.2%)

Investment

Company

(0.2%

)

Morgan

Stanley

Institutional

Liquidity

Funds

-

Government

Portfolio

-

Institutional

Class

(See

Note

G)

(Cost

$50,690)

50,690

50,690

Total

Investments

(99.9%)

(Cost

$21,505,622)

(c)

21,718,606

Other

Assets

in

Excess

of

Liabilities

(0.1%)

16,177

NET

ASSETS

(100.0%)

$21,734,783

(a)

Non-income

producing

security.

(b)

Amount

is

less

than

0.05%.

(c)

At

March

31,

2023,

the

aggregate

cost

for

federal

income

tax

purposes

is

$21,505,622.

The

aggregate

gross

unrealized

appreciation

is

$1,196,211

and

the

aggregate

gross

unrealized

depreciation

is

$983,227,

resulting

in

net

unrealized

appreciation

of

$212,984.

Portfolio

Composition

Classification  

Percentage

of

Total

Investments

Other*

62.0

%

Software

13.0

Technology

Hardware,

Storage

&

Peripherals

8.1

Semiconductors

&

Semiconductor

Equipment

5.9

Capital

Markets

5.6

Specialty

Retail

5.4

Total

Investments

100.0%

*

Industries

and/or

investment

types

representing

less

than

5%

of

total

investments.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

US

Select

Equity

ETF

7

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Statement

of

Assets

and

Liabilities

March

31,

2023

Assets:

Investments

in

Securities

of

Unaffiliated

Issuers,

at

Value

(Cost

$21,454,932)

$

21,667,916

Investment

in

Security

of

Affiliated

Issuer,

at

Value

(Cost

$50,690)

50,690

Total

Investments

in

Securities,

at

Value

(Cost

$21,505,622)

21,718,606

Dividends

Receivable

21,349

Total

Assets

21,739,955

Liabilities:

Payable

for

Management

Fee

5,172

Total

Liabilities

5,172

Net

Assets

$

21,734,783

Net

Assets

Consist

of:

Paid-in-Capital

$

21,500,000

Total

Distributable

Earnings

234,783

Net

Assets

$

21,734,783

Shares

Outstanding

$0.001

Par

Value

(unlimited

shares

authorized)

430,000

Net

Asset

Value

Per

Share

$

50.55

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

US

Select

Equity

ETF

8

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Statement

of

Operations

Period

from

January

30,

2023

^

to

March

31,

2023

Investment

Income:

Dividends

from

Securities

of

Unaffiliated

Issuers

(Net

of

$42

of

Foreign

Taxes

Withheld)

$

76,263

Dividends

from

Security

of

Affiliated

Issuer

(Note

G)

325

Total

Investment

Income

76,588

Expenses:

Management

Fee

(Note

B)

10,224

Total

Expenses

10,224

Rebate

from

Morgan

Stanley

Affiliate

(Note

G)

(11)

Net

Expenses

10,213

Net

Investment

Income

66,375

Change

in

Unrealized

Appreciation

(Depreciation):

Investments

212,984

Net

Change

in

Unrealized

Appreciation

(Depreciation)

212,984

Change

in

Unrealized

Appreciation

(Depreciation)

212,984

Net

Increase

in

Net

Assets

Resulting

from

Operations

$

279,359

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Calvert

US

Select

Equity

ETF

9

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Statement

of

Changes

in

Net

Assets

Period

from

January

30,

2023

^

to

March

31,

2023

Increase

(Decrease)

in

Net

Assets:

Operations:

Net

Investment

Income

$

66,375

Net

Change

in

Unrealized

Appreciation

(Depreciation)

212,984

Net

Increase

in

Net

Assets

Resulting

from

Operations

279,359

Dividends

and

Distributions

to

Shareholders:

Dividends

and

Distributions

(44,576)

Total

Dividends

and

Distributions

to

Shareholders

(44,576)

Capital

Share

Transactions:

Subscribed

20,000,000

Subscribed

In-Kind

1,500,000

Net

Increase

in

Net

Assets

Resulting

from

Capital

Share

Transactions

21,500,000

Total

Increase

in

Net

Assets

21,734,783

Net

Assets:

Beginning

of

Period

–

End

of

Period

$

21,734,783

Capital

Share

Transactions:

Beginning

of

Period

–

Shares

Subscribed

400,000

Shares

Subscribed

In-Kind

30,000

Shares

Outstanding,

End

of

Period

Net

Increase

in

430,000

^

Commencement

of

Operations.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Financial

Highlights

Calvert

US

Select

Equity

ETF

10

The

accompanying

notes

are

an

integral

part

of

the

financial

statements.

Morgan

Stanley

ETF

Trust

Selected

Per

Share

Data

and

Ratios

Period

from

January

30,

2023

(1)

to

March

31,

2023

Net

Asset

Value,

Beginning

of

Period

$50.00‌

Income

(Loss)

from

Investment

Operations:

—

Net

Investment

Income

(2)

0.15‌

Net

Realized

and

Unrealized

Gain

0.50‌

Total

from

Investment

Operations

0.65‌

Distributions

from

and/or

in

Excess

of:

—

Net

Investment

Income

(0.10‌)

Net

Asset

Value,

End

of

Period

$50.55‌

Total

Return

(3)

1.32‌%

(4)

Ratios

to

Average

Net

Assets

and

Supplemental

Data:

$21,735

Net

Assets,

End

of

Period

(Thousands)

$21,735‌

Ratio

of

Expenses

0.29‌%

(5)(6)

Ratio

of

Net

Investment

Income

1.86‌%

(5)(6)

Ratio

of

Rebate

from

Morgan

Stanley

Affiliates

0.00‌%

(5)(7)

Portfolio

Turnover

Rate

0‌%

(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.

11

Semi-Annual

Report

—

March

31,

2023

(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

reporting

guidance

Accounting

Standard

Codification

("ASC")

Topic

946.

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

rele-

vant

exchanges.

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

security

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

market

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

relevant

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

repu-

table

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

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

or

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

brokers/dealers;

(4)

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;

(5)

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

Standards

Board

(“FASB”)

ASC

820,

“Fair

Value

Mea-

surement”

(“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

par-

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

12

Morgan

Stanley

ETF

Trust

ticipants

at

the

measurement

date. ASC

820

establishes

a

three tier

hierarchy

to

distinguish

between

(1)

inputs

that

reflect

the

assumptions

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

participants

would

use

in

valuing

an

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances

(unobservable

inputs)

and

to

establish

classification

of

fair

value

measurements

for

disclosure

purposes.

Various

inputs

are

used

in

determin-

ing

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,

2023:

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

Aerospace

&

Defense

$

60

$

—

$

—

$

60

Air

Freight

&

Logistics

60

—

—

60

Automobile

Components

78

—

—

78

Banks

539

—

—

539

Biotechnology

683

—

—

683

Broadline

Retail

57

—

—

57

Building

Products

274

—

—

274

Capital

Markets

1,221

—

—

1,221

Chemicals

297

—

—

297

Commercial

Services

&

Supplies

51

—

—

51

Communications

Equipment

247

—

—

247

Consumer

Finance

287

—

—

287

Consumer

Staples

Distribution

&

Retail

176

—

—

176

Containers

&

Packaging

170

—

—

170

Diversified

Consumer

Services

60

—

—

60

Diversified

Telecommunication

Services

225

—

—

225

Electric

Utilities

271

—

—

271

Electrical

Equipment

520

—

—

520

Electronic

Equipment,

Instruments

&

Components

40

—

—

40

Entertainment

371

—

—

371

Financial

Services

590

—

—

590

Food

Products

594

—

—

594

Ground

Transportation

102

—

—

102

Health

Care

Equipment

&

Supplies

514

—

—

514

Health

Care

Providers

&

Services

166

—

—

166

Health

Care

REITs

27

—

—

27

Hotel

&

Resort

REITs

14

—

—

14

Hotels,

Restaurants

&

Leisure

401

—

—

401

Household

Durables

20

—

—

20

Household

Products

202

—

—

202

Independent

Power

and

Renewable

Electricity

Producers

30

—

—

30

Industrial

REITs

202

—

—

202

Insurance

922

—

—

922

Interactive

Media

&

Services

870

—

—

870

IT

Services

334

—

—

334

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

13

Morgan

Stanley

ETF

Trust

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

indemnifications.

The

Trust’s

max-

imum

exposure

under

these

arrangements

is

unknown.

However,

the Trust

has

not

had

prior

claims

or

losses

pursuant

to

these

contracts

and

expects

the

risk

of

loss

to

be

remote.

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,

Income

and

Expenses:

Security

transactions

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

deter-

mined

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

dividends)

net

of

applicable

withholding

taxes.

Non-cash

dividends

received

in

the

form

of

stock,

if

any,

are

recognized

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 

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

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

ongo-

ing

services

to

shareholders

of

the

Fund

and

the

maintenance

of

shareholder

accounts

in

an

amount

up

to

0.25%

of

its

aver-

age

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)

Common

Stocks

(cont’d)

Leisure

Products

$

81

$

—

$

—

$

81

Life

Sciences

Tools

&

Services

442

—

—

442

Machinery

615

—

—

615

Media

224

—

—

224

Metals

&

Mining

150

—

—

150

Mortgage

Real

Estate

Investment

Trusts

(REITs)

70

—

—

70

Multi-Utilities

39

—

—

39

Office

REITs

9

—

—

9

Personal

Care

Products

150

—

—

150

Pharmaceuticals

553

—

—

553

Professional

Services

276

—

—

276

Real

Estate

Management

&

Development

66

—

—

66

Residential

REITs

49

—

—

49

Retail

REITs

272

—

—

272

Semiconductors

&

Semiconductor

Equipment

1,289

—

—

1,289

Software

2,814

—

—

2,814

Specialized

REITs

317

—

—

317

Specialty

Retail

1,172

—

—

1,172

Technology

Hardware,

Storage

&

Peripherals

1,761

—

—

1,761

Textiles,

Apparel

&

Luxury

Goods

308

—

—

308

Trading

Companies

&

Distributors

122

—

—

122

Water

Utilities

214

—

—

214

Total

Common

Stocks

21,668

—

—

21,668

Short-Term

Investment

Investment

Company

51

—

—

51

Total

Assets

$21,719

$—

$—

$21,719

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

14

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

securi-

ties

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

Funds’

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

you

buy

or

sell

Fund

shares

on

the

secondary

market,

you

will

pay

or

receive

the

market

price,

which

may

be

higher

or

lower

than

NAV.

Your

transaction

will

be

priced

at

NAV

if

you

purchase

or

redeem

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.

Transaction

fees

assessed

during

the

period

are

in-

cluded

in

the

proceeds

or

cost

from

shares

issued

or

redeemed

on

the

Statements

of

Changes

in

Net

Assets.

G.

Security

Transactions

and

Transactions

with

Affil-

iates:

For

the

period ended

March

31,

2023 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 $19,997,979

and

$0,

respectively.

There

were

no

purchases

and

sales

of

long-term

U.S.

Govern-

ment

securities

for

the

period ended

March

31,

2023.

Purchas-

es

related

to

In-Kind

transactions

were

$1,456,953 for

period

end.

There

were

no

sales

related

to

In-Kind

transactions

for

the

period

ended

March

31,

2023.

The

Fund

invests

in

the

Institutional

Class

of

the

Morgan

Stanley

Institutional

Liquidity

Funds

—

Government

Portfolio

(the

“Liquidity

Funds”),

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

Funds.

For

the

period ended

March

31,

2023, management

fees

paid

were

reduced

by $11 relating

to

the

Fund’s

investment

in

the

Liquidity

Funds. 

A

summary

of

the

Fund’s

transactions

in

shares

of

affiliated

investments

during

the

period ended

March

31,

2023 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

income.

Accordingly,

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

Affiliated

Investment

Company

Value

January

30,

2023

Purchases

at

Cost

Proceeds

from

Sales

Dividend

Income

Liquidity

Funds

$

–

$

96,138

$

45,448

$

325

Affiliated

Investment

Company

(cont'd)

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

March

31,

2023

Liquidity

Funds  

$

–

$

–

$

50,690

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

15

Morgan

Stanley

ETF

Trust

of

Operations.

The

Fund

files

tax

returns

with

the

U.S.

Internal

Revenue

Service,

New

York

and

various

states.

I.

Principal

Risks:

Market

Risk:

An

investment

in

the

Fund

is

based

on

the

values

of

the

Fund's

investments,

which

may

change

due

to

economic

and

other

events

that

affect

markets

generally,

as

well

as

those

that

affect

particular

regions,

countries,

indus-

tries,

companies

or

governments.

Social,

political,

economic

and

other

conditions

and

events,

such

as

war,

natural

disasters,

health

emergencies

(e.g.,

epidemics

and

pandemics),

terrorism,

conflicts,

social

unrest,

recessions,

inflation,

rapid

interest

rate

changes

and

supply

chain

disruptions,

may

occur

and

could

significantly

impact

issuers,

industries,

governments

and

other

systems,

including

the

financial

markets

and

global

economy.

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

be

sudden

and

significant

and

may

negatively

impact

broad

segments

of

businesses

and

populations

and

have

a

significant

and

rapid

negative

impact

on

the

performance

of

and/or

income

or

yield

from

the

Fund's

investments

and

exacerbate

pre-existing

risks

to

the

Fund.

For

example,

the

extent

of

the

impact

of

a

public

health

emergency

depends

on

future

developments,

including

(i)

the

duration

and

spread

of

the

public

health

emergency,

(ii)

the

restrictions

and

advisories,

(iii)

the

effects

on

the

financial

markets,

(iv)

government

and

regulatory

responses,

and

(v)

the

effects

on

the

economy

overall

as

a

result

of

developments

such

as

disruption

to

consumer

demand,

economic

output

and

supply

chains.

The

occurrence,

duration

and

extent

of

these

or

other

types

of

adverse

economic

and

market

conditions

and

uncertainty

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

developments

and

the

extent

to

which

the

associated

conditions

impact

the

Fund

will

also

depend

on

other

future

developments,

which

are

highly

un-

certain,

difficult

to

accurately

predict

and

subject

to

change

at

any

time.

The

financial

performance

of

the

Fund's

investments

(and,

in

turn,

the

Fund's

investment

results)

as

well

as

their

liquidity

may

be

adversely

affected

because

of

these

and

similar

types

of

factors

and

developments.

Authorized

Participant

Concentration

Risk:

Only

an

authorized

participant

may

engage

in

creation

or

redemption

transactions

directly

with

the

Fund.

The

Fund

has

a

limited

number

of

intermediaries

that

act

as

authorized

participants

and

none

of

these

authorized

participants

is

or

will

be

obligated

to

engage

in

creation

or

redemption

transactions.

To

the

extent

that

these

intermediaries

exit

the

business

or

are

unable

to

or

choose

not

to

proceed

with

creation

and/or

redemption

orders

with

respect

to

the

Fund

and

no

other

authorized

participant

creates

or

redeems,

shares

may

trade

at

a

discount

to

net

asset

value

(“NAV”)

and

possibly

face

trading

halts

and/or

delisting. 

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

other

factors,

may

result

in

the

shares

trading

significantly

above

(at

a

premium)

or

below

(at

a

discount)

to

NAV

or

to

the

intraday

value

of

the

Fund’s

holdings

(and,

as

a

result,

an

investor

may

pay

more

for,

or

receive

less

than,

the

underlying

value

of

the

shares,

respectively).

Buying

or

selling

shares

in

the

secondary

market

may

require

paying

brokerage

commissions

or

other

charges

imposed

by

brokers

as

determined

by

that

broker.

Brokerage

commissions

are

often

a

fixed

amount

and

may

be

a

significant

proportional

cost

when

seeking

to

buy

or

sell

relatively

small

amounts

of

shares.

In

addition,

the

market

price

of

shares,

like

the

price

of

any

exchange-traded

security,

includes

a

“bid-ask

spread”

charged

by

the

market

makers

or

other

participants

that

trade

the

particular

security.

The

spread

of

a

Fund’s

shares

varies

over

time

based

on

the

Fund’s

trading

volume

and

market

liquidity

and

may

increase

if

the

Fund’s

trading

volume,

the

spread

of

the

Fund’s

underlying

securities,

or

market

liquidity

decrease. 

Large

Shareholder

Transaction

Risk:

The

Fund

may

experience

adverse

effects

when

certain

shareholders

purchase

or

redeem

large

amounts

of

shares

of

a

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

a

Fund’s

performance

to

the

extent

that

a

Fund

is

delayed

in

investing

new

cash

and

is

Semi-Annual

Report

—

March

31,

2023

(unaudited)

Notes

to

Financial

Statements

(cont’d)

16

Morgan

Stanley

ETF

Trust

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

a

Fund’s

current

expenses

being

allocated

over

a

smaller

asset

base,

leading

to

an

increase

in

a

Fund’s

expense

ratio.

Although

large

shareholder

transactions

may

be

more

frequent

under

certain

circumstanc-

es,

a

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. 

17

Semi-Annual

Report

—

March

31,

2023

(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

under

the

investment

management

agreement

(the

“Management

Agreement”),

including

portfolio

management,

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,

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

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,

2023

(unaudited)

Investment

Advisory

Agreement

Approval

(cont’d)

18

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.

As

part

of

the

Board’s

review,

the

Board

received

information

from

management

on

the

impact

of

the

COVID-19

pandemic

on

the

firm

generally

and

the

Adviser

and

the

Fund

in

particular

including,

among

other

information,

the

pandemic’s

current

and

expected

impact

on

the

Fund’s

performance

and

operations.

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.

19

Semi-Annual

Report

—

March

31,

2023

(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

1-2,

2023,

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,

2022,

through

December

31,

2022,

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

portfolios

of

the

Trust

during

that

period.

However,

during

the

period

ended

March

31,

2023,

the

Program

applied

to

the

Fund.

20

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

April

2021

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

investment

management

affiliates’

everyday

business

purposes

—

information

about

your

transactions,

experiences,

and

creditworthiness

Yes

Yes

For

our

affiliates’

everyday

business

purposes

—

information

about

your

transactions

and

experiences

Yes

No

For

our

affiliates’

everyday

business

purposes

—

information

about

your

creditworthiness

No

We

don’t

share

For

our

investment

management

affiliates

to

market

to

you

Yes

Yes

For

our

affiliates

to

market

to

you

No

We

don’t

share

For

non-affiliates

to

market

to

you

No

We

don’t

share

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

21

April

2021

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

Investment

Management

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.

Semi-Annual

Report

—

March

31,

2023

(unaudited)

U.S.

Customer

Privacy

Notice

(cont’d)

22

April

2021

Morgan

Stanley

ETF

Trust

Definitions

Investment

Management

Affiliates

MSIM

Investment

Management

Affiliates

include

registered

investment

advisers,

registered

broker-dealers,

and

registered

and

unregistered

funds

in

the

Investment

Management

Division.

Investment

Management

Affiliates

does

not

include

entities

associated

with

Morgan

Stanley

Wealth

Management,

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

Affiliates

Companies

related

by

common

ownership

or

control.

They

can

be

financial

and

non-financial

companies.

Our

affiliates

include

companies

with

a

Morgan

Stanley

name

and

financial

companies

such

as

Morgan

Stanley

Smith

Barney

LLC

and

Morgan

Stanley

&

Co.

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

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,

2023

(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

Joseph

J.

Kearns

Michael

F.

Klein

Patricia

A

Maleski

W.

Allen

Reed,

Chair

of

the

Board

Adviser

Morgan

Stanley

Investment

Management

Inc.

522

Fifth

Avenue

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

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

Perkins

Coie

LLP

1155

Avenue

of

the

Americas

22nd

Floor

New

York,

New

York

10036

Independent

Registered

Public

Accounting

Firm

Ernst

&

Young

LLP

200

Clarendon

Street

Boston,

MA

02116

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.

The

Fund

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

are

available

on

the

Fund's

public

website,

www.

calvert.com.

Proxy

Voting

Policies

and

Procedures

and

Proxy

Voting

Record

You

may

obtain

a

copy

of

the

Trust’s

Proxy

Voting

Policy

and

Procedures

and

information

regarding

how

the

Trust

voted

proxies

relating

to

portfolio

securities

during

the

most

recent

twelve-month

period

ended

June

30,

without

charge,

on

our

web

site

at

www.calvert.com.

This

information

is

also

available

on

the

SEC’s

website

at

www.sec.gov.

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,

which

describes

in

detail

the

fund’s

investment

policies,

risks,

fees

and

expenses.

Please

read

the

prospectus

carefully

before

you

invest

or

send

money.

For

additional

informa-

tion,

including

information

regarding

the

investments

comprising

the

Fund,

please

visit

our

website

at

www.morganstanley.com/im/shareholderreports.

ETFCALUSELEQTYSAN

5648388

EXP

05.31.24

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.

522

Fifth

Avenue

New

York,

New

York

10036 

©

2023

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.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant as part of EX-99.CERT(insert hyperlink here).

(c) Section 906 certification (insert hyperlink here)

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 17, 2023

            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 17, 2023

/s/ Francis J. Smith

Francis J. Smith

Principal Financial Officer

May 17, 2023