FAQs
What is the KLD Catholic Values 400 Index?
Who created the CV400 and why?
What universe does the CV400 utilize?
How many companies are in the CV400?
Is there a minimum size for companies in the CV400?
How was the CV400 constructed?
What ESG factors are used in the construction of the CV400?
How is the CV400 weighted?
How is the CV400 maintained?
Who calculates the CV400 performance and values?
What determines turnover of the CV400?
Can I start a mutual fund or an ETF based on the CV400?
How can I obtain a list of the constituents in the Index?
Can I be notified of changes to the CV400?
How can I obtain Index analytics for portfolio performance measurement and attribution?
How can I invest in the CV400?
Can I use the CV400 as an "approved" list?
How does KLD ensure that the companies on the CV400 meet the United States Conference of Catholic Bishops Guidelines?
What is the KLD Catholic Values 400 Index?
The KLD Catholic Values 400SM Index (CV400) is a float-adjusted market capitalization weighted common stock index modeled on the S&P 500 Index. The CV400 is designed to represent the large-cap U.S. equity market available to Catholic investors who seek equity ownership in alignment with the moral and social teachings of the Church.
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Who created the CV400 and why?
KLD Research & Analytics created the CV400 in 1998 as a custom index. KLD recently had the opportunity to make it broadly available, and in 2007 KLD implemented new guidelines and relaunched the index as a benchmark for Catholic investors.
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What universe does the CV400 utilize?
The CV400’s universe is the S&P 500 and the largest 3000 US equities, covering 98% of the U.S. equity market.
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How many companies are in the CV400?
KLD maintains the Index at 400 companies at all times. Additions are made at the same time as removals.
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Is there a minimum size for companies in the CV400?
Companies must have a minimum market capitalization of $200 million to be added to the index. However, KLD does not automatically remove a company from the index if its market capitalization drops below $200 million.
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How was the CV400 constructed?
The CV400 is based on KLD’s Domini 400 SocialSM Index with additional screens for Catholic Values set forth in the United States Conference of Catholic Bishops’ Socially Responsible Investment Guidelines (USCCB SRI Guidelines). For more details please see the Methodology section of this website.
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What ESG factors are used in the construction of the CV400?
Companies involved in certain types of business activities are automatically disqualified from consideration for the CV400. These include tobacco, abortion, contraceptive products, fetal/embryonic stem cell research and human cloning. Companies with significant involvement in other industries are also disqualified from consideration. These include alcohol, military weapons, firearms, gambling and pornography.
The CV400 includes companies with strong environmental, social, governance and Catholic values performance.
For more details please see the Methodology section of the website.
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How is the CV400 weighted?
The CV400 is float-adjusted market-capitalization weighted.
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How is the CV400 maintained?
The Index Committee maintains the Index at 400 companies at all times, adding a company at the same time that another is removed. Companies may be removed from the CV400 due to corporate actions, involvement in business activities that violate Catholic teachings or poor ESG performance. KLD endeavors to keep turnover on the Index at a rate consistent with turnover on the S&P 500.
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Who calculates the CV400 performance and values?
The CV400 is calculated by Standard & Poor’s Custom Indices.
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What determines turnover of the CV400?
A substantial majority of index changes are attributable to corporate actions occurring throughout the year. KLD removes companies on a discretionary basis from time to time, either for concerns related to exclusionary screens or for problematic ESG or Catholic values performance.
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Can I start a mutual fund or an ETF based on the CV400?
Please contact or indexes@kld.com to discuss licensing opportunities.
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How can I obtain a list of the constituents in the Index?
To purchase a current list of constituents, or to subscribe to constituent lists for one or more KLD indexes, please contact indexes@kld.com.
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Can I be notified of changes to the CV400?
KLD provides advance notification of additions to or removals from its indexes to index licensees. KLD publishes prior month changes on www.KLDIndexes.com in the middle of every month. Please contact indexes@kld.com for more information.
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How can I obtain Index analytics for portfolio performance measurement and attribution?
KLD can provide clients with index data to measure portfolio performance and conduct attribution analysis. Please contact indexes@kld.com.
How can I invest in the CV400?
KLD Indexes is an independent index provider and does not manage any funds or money. However, KLD Indexes are licensed as investable products for individuals and institutions.
The CV400 is currently not licensed as an investable product. KLD looks forward to licensing the Index so individual and institutional investors have the opportunity to invest in companies whose business is aligned with the moral and social teachings of the church.
For a complete list of products based on KLD Indexes, please see the Product Fact Sheet.
Can I use the CV400 as an "approved" list?
Yes. The CV400 contains 400 U.S. companies that pass ESG screens and reflect the general market behavior of stocks of the average Catholic investor. The CV400 is not meant to be the 400 best companies nor is it the only 400 companies that meet the ESG performance or United States Conference of Catholic Bishops’ Socially Responsible Investment Guidelines (USCCB SRI Guidelines) criteria.
How does KLD ensure that the companies on the CV400 meet the United States Conference of Catholic Bishops Guidelines?
To ensure that the CV400 is in accordance with the USCCB SRI Guidelines, KLD has an advisory Committee comprised of three prominent members of the Catholic community. The Committee periodically reviews changes to the index and provides input on any changes to the guidelines to address emerging issues relevant to Catholic investors.
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