CVMC: Calvert's ESG Mid-Cap Core ETF Has Room For Improvement
Source: SeekingAlpha
2025-01-25 23:09:18 ET
Summary
- 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.
- Other ETFs, particularly FMDE, do a better job improving growth, value, and quality, while maintaining adequate diversification. AVMC is another choice for investors looking for a lower growth/value profile.
- Due to these alternatives, I've assigned CVMC a "hold" rating.
Investment Thesis
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CVMC: Calvert's ESG Mid-Cap Core ETF Has Room For Improvement
Calvert US Mid-Cap Core Responsible Index ETF
NASDAQ: CVMC
CVMC Trading
2.26% G/L:
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