Calvert US Large-Cap Diversity, Equity and Inclusion Index ETF

Morgan Stanley's Calvert US Large-Cap Diversity, Equity and Inclusion Index ETF (CDEI) tracks the Calvert US Large-Cap Diversity Research Index: large US companies screened and weighted toward strong workplace diversity, pay and inclusion practices. It may appeal to investors who want large-company US stock exposure tied to those values. It costs 0.14% a year, above the 0.11% average of similar funds, and had only about $18.2 million in assets as of June 30, 2026.

• Over the year to Oct 27, 2026, CDEI returned +15.8%, 7th of 8 among similar funds.
• Its worst full calendar year was 2025 (+16.6%); its best was 2024 (+18.7%).
• The deepest fall in its price history was 19.5% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 27, 2025.

As of Jun 30, 2026, the fund held 232 securities; the ten largest made up 46.84% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +10.96%, +5.17%, +0.83%.

CDEI is an index fund: it aims to match the Calvert US Large-Cap Diversity Research Index rather than pick stocks. Calvert Research and Management, an affiliate of the fund's adviser, owns the index. It starts with the 1,000 largest US companies by market value and keeps those that fit the Calvert Principles for Responsible Investment and lead on, or are significantly improving, talent management. That covers board and workforce diversity, career advancement, pay gaps and living wages, family support and flexible work, and inclusive culture.

Stocks are weighted by float-adjusted market value (company size counting only shares available to trade), tilted toward companies with better talent practices, within set limits. The index resets its membership once a year and readjusts weights quarterly. As of September 30, 2025, it held 270 companies, below the 400 to 600 it typically expects, and was concentrated in information technology.

The fund uses replication, holding every index stock in roughly the index's proportions, and may lend its securities to other investors. It is non-diversified, meaning it can put more of its money into fewer companies. As of June 30, 2026, it had 232 holdings, with 46.8% of assets in the top 10 and 39.7% in technology. If assets ever fell below $5 million, it could hold a representative sample instead.

• CDEI charges 0.14% a year, versus an average of 0.11% for the similar funds below (5th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $14 in the first year and $179 over 10 years (assuming a 5% annual return).

It holds 232 large-company stocks for 0.14% a year and has moved broadly with the market, but its workplace-diversity screen and 39.7% technology weighting (as of June 30, 2026) make it a values-based core rather than a plain market fund.

CDEI launched on January 30, 2023, so it has no record from the 2008, 2020 or 2022 downturns. It has had no losing calendar year: 18.74% in 2024 and 16.38% in 2025. Its deepest drop was 19.5%, from February 19 to April 8, 2025; it had fully recovered by June 27, about 2.6 months after the low. A retiree selling near that low would have locked in a loss.

Dividend income is modest: 0.94% of the share price over the past year as of October 27, 2026, paid quarterly. The 0.14% expense ratio ($14 in the first year on $10,000, in the SEC's standard example) is above the 0.11% average for similar funds. At $18.2 million in assets as of June 30, 2026, it is the smallest in its peer group, and small funds sometimes close. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.