ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. The Responsible Investing Channel
  2. Consider CDEI as LGBTQ+ Investment Ideas
The Responsible Investing Channel
Share

Consider CDEI as LGBTQ+ Investment Ideas

Tom LydonJun 21, 2023
2023-06-21

With June being Pride Month, advisors and market participants are paying renewed attention to strategies relevant to the LGBTQ+ community. That should also be happening throughout the rest of the year, and the good news is that the number of investments relevant to the LGBTQ+ community and their supporters is increasing.

While it’s not a dedicated LGBTQ+ exchange traded fund, the Calvert US Large-Cap Diversity, Equity and Inclusion Index ETF (CDEI ) merits a place in this conversation because, as its name implies, the actively managed fund priorities diversity, equity, and inclusion principles, which are important to members of the LGBTQ+ community as well as their allies.

With that in mind, CDEI, which debuted in January, could find itself at the right place at the right time. More investors, particularly those in younger demographics, want access to strategies that prioritize DEI virtues and LGBTQ+ allyship.

“Nearly half of U.S. investors in a recent Morgan Stanley survey want opportunities to invest in LGBTQ+1 and inclusion, across a broad range of products and strategies. This demand increases substantially among LGBTQ+ investors (86%), heterosexual investors with an LGBTQ+ household member (76%) and younger investors (67% of Gen Z and 56% of Millennials),” noted Morgan Stanley.

CDEI Could Have Other Advantages

As noted above, CDEI isn’t a dedicated LGBTQ+ ETF. However, investors should note its adjacency to that theme because, at the moment, there are not many such ETFs to choose from.

Additionally, due its active management philosophy, the potential exists for CDEI to offer DEI purity, thereby enhancing its relevance as an LGBTQ+-friendly strategy. That could broaden the audience for CDEI, with younger investors potentially being a driving force.

“The business case for LGBTQ+ investment products includes both investors who identify as part of that community as well as younger investors: Investors born after 1980, regardless of their identity, could play a significant role in demand for these products,” added Morgan Stanley. “A majority of Millennial and Gen Z investors expressed interest in finding investment options that advance LGBTQ+ equity and inclusion.”

Home to more than 350 domestic large-cap equities, CDEI is also a credible option for investors seeking growth style exposure, as the fund allocates 42% of its weight to tech stocks. In theory, a DEI strategy should be sector-agnostic. However, it can also be overweight on groups that score well in terms of DEI priorities — which tech does. Apple (AAPL) and Microsoft MSFT combine for almost 29% of the fund’s roster.

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


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X