The CDEI ETF tracks the Calvert US Large-Cap Diversity Research Index, which reflects criteria on diverse workforces and fair, inclusive corporate cultures among large US-listed companies.

It suits investors who want US large-cap exposure and also wish to build corporate diversity, equity, and inclusion standards into their long-term investment principles.

It is a passive (index-tracking) ETF managed by Calvert.

This fund tracks the performance of an index centered on US large-cap companies that meet Calvert's diversity research criteria and responsible investing principles. Because the index is managed using a representative sample, the actual portfolio holdings and the performance of the target index may not match perfectly.

• US large-cap exposure that reflects diversity research criteria
• Passive index management using a representative sample

Assets under management (AUM) stand at $18.8M, and the total expense ratio is 0.14% per year.

Trading liquidity can affect execution costs when buying and selling, so it is wise to check trading volume and bid-ask spreads yourself. Even for an index-tracking product, the market price can differ from the net asset value.

The CDEI ETF can be influenced by the direction of the US large-cap market and by the performance of sectors with heavy growth-stock weightings. Given its index-tracking nature, overall market risk appetite and the earnings environment for large caps may drive performance swings more than news about individual companies.

Demand for responsible investing criteria and a preference for standard large-cap exposure can both affect fund flows. Changes in corporate workforce policies and disclosures, as well as shifts toward risk aversion or risk appetite in the broader market, can also change interest in the product and its trading conditions.

The fund is characterized by large-cap exposure that reflects diversity research criteria, but investors should also watch for changes in those criteria, index tracking error, and market price fluctuations.

Among the products shown in the table, the FNDX ETF approaches US large caps from a fundamental-index perspective, while the PRF ETF looks at the broad US stock market using a fundamental-index approach. The FNDA ETF is closer to small caps, the JHMM ETF to multifactor mid caps, and the RECS ETF to a core equity approach. The CDEI ETF has a lower expense burden than the FNDX ETF and the PRF ETF, and a similar level to the RECS ETF. Because these products differ in size and style, it is important to compare whether they reflect diversity criteria and which market-cap ranges they cover.

When considering the CDEI ETF, you should check both whether its responsible investing criteria fit your purpose for large-cap exposure and whether its costs and trading conditions suit your holding plan. The quarterly distribution policy and the index-tracking method are also items to confirm in advance.

The CDEI ETF is exposed to market declines and sector-specific volatility, and it may also lag standard large-cap products that do not apply responsible investing criteria. Tracking error from representative-sample management and market price differences at the time of trading can also magnify losses.

The CDEI ETF can be considered by those who want US large-cap exposure combined with diversity, equity, and inclusion criteria. However, it is advisable to compare differences in fees, trading conditions, and inclusion criteria with standard large-cap products, and then judge whether it fits your personal goals and risk tolerance. This content is general information and not personalized investment advice.