CVLC vs ESGU

CVLCBCalvert US Large-Cap Core Responsible Index ETF

ESGUAiShares ESG Aware MSCI USA ETF

In short

CVLC A plain US large-cap core index fund wearing a Calvert conscience. It tracks the Calvert US Large-Cap Core Responsible Index, so the big-company exposure is familiar and the screening happens inside the index rather than as a bolt-on.

ESGU Screening out companies is easy; keeping the market's shape while you do it is the hard part. ESGU's index optimizes toward stronger ESG characteristics while targeting risk and return similar to the broad MSCI USA Index.

Stated mandate

CVLC The Fund seeks to track the performance of the Calvert US Large-Cap Core Responsible Index.

ESGU Seeks to track an index of large- and mid-cap U.S. companies selected for favorable environmental, social and governance (ESG) characteristics while seeking risk/return similar to the MSCI USA Index.

Why people hold it

• CVLC Values screening without leaving the core: it tracks the Calvert US Large-Cap Core Responsible Index, so responsible criteria are built into the benchmark rather than layered on by a manager.
• 0.15% a year, in the same neighborhood as the typical US large-cap fund. Screened index products often ask for more.
• Does exactly what the prospectus says: a US equity, index-tracking fund in a standard 1940 Act wrapper, with no factor tilt advertised on the side.
• Rates in the upper half of its US large-cap peer group, mostly on how faithfully it delivers its stated mandate.

• ESGU Not a screen-and-drop portfolio: the index optimizes toward better ESG characteristics while targeting risk and return similar to the broad MSCI USA Index.ishares.com
• 0.15% a year, below the typical fund in its US ESG group, spread across roughly 300 large- and mid-cap names rather than a narrow shortlist.
• Running since 2016, a multi-billion-dollar iShares fund that pays quarterly and sits in the top quartile of a crowded US ESG peer group.

Worth knowing

• CVLC The unscreened giants are cheaper. SCHX and VV charge 0.03%, and BKLC lists a 0% fee. The responsible index is what you are paying the difference for.
• Thinly traded and mid-sized by ETF standards, so bid-ask spreads can be wider than the household-name large-cap funds.
• Launched in 2023, so the track record is short. A screened index also holds a different roster than the full market, and results can drift from it in either direction.

• ESGU Cheaper seats in the same row: XVV at 0.08%, ESGV at 0.09%, SNPE and EFIV at 0.10%, against 0.15% here.
• Market-like risk is the stated goal, so exclusions are lighter than a purist ESG fund and the holdings end up looking a lot like the broad US market.ishares.com
• MSCI's ratings decide who makes the cut, so the portfolio reflects one provider's definition of ESG, not an industry standard.ishares.com

Full CVLC profile⁠

Full ESGU profile⁠