Calvert US Mid-Cap Core Responsible Index ETF

CVMC

時価総額 $1.19億

When first heading into 2025, many market experts bet on equities paving the way for growth strategies through the year. This narrative has not particularly changed, per se.

Given the market's current growth narrative, investors may want to consider broadening out their equity exposure beyond traditional large caps. In particular, midcaps could provide a particularly interesting investment opportunity.

CVMC is comprised of 600+ Russell Midcap Index securities that align with the Calvert Principles For Responsible Investment. Its expense ratio is 0.15% and CVMC has $68 million in assets. Backfilling CVMC's returns with its no load mutual fund cousin, I found that its historical risk and returns were virtually identical to its benchmark, represented by IWR. However, IWR is an unambitious benchmark to match. By essentially reweighting stocks and keeping sector allocations similar, CVMC brings with it common issues that plague cap-weighted mid-cap funds.

Approximately two years ago, just before an Exchange conference kicked off, one of the largest asset managers entered into the ETF market. Morgan Stanley Investment Management (MSIM), home to some of the strongest asset management brands, launched their initial suite of ETFs in January 2023.

It's certainly no secret that the mega-cap tech giants in the Magnificent Seven saw stellar returns this year. Investors that focused their exposure in the Magnificent Seven mega caps this year have undoubtedly enjoyed the results.

More good news has come out in favor of strong U.S. economic fundamentals.  The latest report from the Bureau of Economic Analysis shows that second-quarter GDP growth accelerated by 30% for the quarter.

After over half a year of uncertainty, confidence is finally mounting in favor of the Federal Reserve cutting interest rates in September. In fact, a slim majority of economists polled by Reuters are even betting on the Fed cutting rates three times this year, during the September, November, and December meetings.

Morgan Stanley Investment Management's lineup of ETFs has grown to over half a billion dollars in assets since their launch last year. The firm entered the ETF space one year ago with the launch of six Calvert ETFs.

Mid-cap stocks are often overlooked relative to their larger and smaller peers. That status is amplified when introducing environmental, social, and governance (ESG) and sustainability principles into the equation.

Arguably, no investing style has been on the receiving end of as much criticism as environmental, social, and governance (ESG) investing. For its supporters and those interested in implementing its benefits in their portfolios, the good news is that while they're loud and vocal, the critics don't speak for all market participants.