Morgan Stanley is shutting down the Calvert Diversity, Equity and Inclusion ETF (CDEI), marking another closure in the ESG fund space. The decision continues a trend of asset managers discontinuing specialized ESG products amid shifting market demand and regulatory scrutiny. The CDEI fund focused on companies meeting specific diversity, equity, and inclusion criteria. Its closure reflects broader challenges facing thematic ESG strategies as investors reassess allocations and issuers consolidate product lineups to improve operational efficiency.