Strike an ESG Balance Between Growth and Quality With CVMC

Investors looking to get environmental, social, and governance (ESG) exposure may want the quality offered by large caps, but the extra growth potential of mid caps — a simple solution is the Calvert US-Mid Cap Core Responsible Index ETF (CVMC).

When it comes to ESG exposure, large-cap companies certainly offer the quality aspect of factor investing, which can help in times of volatility — something investors are well-aware of the past year. However, in an uptrend, mid-cap companies also offer opportunities for outperformance.

Like their small-cap counterparts, mid cap offers the growth component that large-cap companies may not offer in the ever-growing ESG space. That said, mid caps can strike the perfect balance between the growth characteristics that small caps exhibit, while also offering the quality factor that come with large caps.

“Mid-cap stocks serve an important role in a well-diversified portfolio as they blend some of the best attributes of their smaller and larger counterparts: Delivering attractive returns historically with relatively low risk and volatility,” a Forbes Advisor article explained.

A Low-Cost ETF Option

In high inflation times like now, cost is a top-of-mind concern for investors. With a 0.15% expense ratio, costs are kept minimal with CVMC.

Per its basic fund description, CVMC seeks to track the Calvert US Mid-Cap Core Responsible Index. The index itself is composed of companies that operate their businesses in a manner that is consistent with The Calvert Principles for Responsible Investment and are selected from a universe of the 200th to 1000th largest US companies by market capitalization.

Additionally, the fund spreads its holdings across a variety of business sectors without over-concentrating on one or a few stocks. As of April 24, no holdings in the fund exceed over 0.68% of the fund’s assets to mitigate concentration risk.

Summary of CVMC benefits, per the fund’s product website:

  • Gain diversified exposure to U.S. mid-cap companies that Calvert believes are demonstrating effective management of key environmental, social, and governance (ESG) risks and opportunities.
  • Tap into Calvert’s deep ESG research which applies the Calvert Principles for Responsible Investment, along with a proprietary view of financial materiality.
  • Access a low-cost, transparent and tax-efficient exchange traded fund (ETF) that seeks competitive performance and positive change.

For more news, information, and analysis, visit the Responsible Investing Channel.