The Morgan Stanley US Large Cap Core Responsible ETF (CVLC) is a publicly-traded exchange-traded fund (ETF) that seeks to track the performance of the MSCI USA Large Cap Diversified Multiple-Factor ESG-Weighted Index. The ETF was launched in 2018 and is managed by Morgan Stanley Investment Management.
The MSCI USA Large Cap Diversified Multiple-Factor ESG-Weighted Index includes companies from the MSCI USA Large Cap Index that have been screened for environmental, social, and governance (ESG) criteria. The index then applies a multifactor methodology that incorporates several factors, including value, momentum, quality, and low volatility, to select companies for inclusion in the index.
CVLC provides investors with exposure to a diversified portfolio of large-cap US stocks that meet certain ESG criteria, with the added potential for enhanced returns through the use of a multifactor methodology. The ETF has a low expense ratio compared to actively managed funds, which may appeal to investors looking to achieve ESG goals while minimizing costs.
It's important to note that investing in ETFs like CVLC carries certain risks, including the potential for market fluctuations and the risk that the ETF may not track the underlying index as intended. Additionally, ETFs may be subject to trading fees and may be less tax-efficient than other investment vehicles. Potential investors should carefully consider the risks associated with investing in CVLC, conduct thorough research, and consult with a financial advisor before making any investment decisions.
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