We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Nuveen ESG LargeCap Value ETF (NULV) a Strong ETF Right Now?
Read MoreHide Full Article
The Nuveen ESG LargeCap Value ETF (NULV - Free Report) was launched on 12/13/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
NULV is managed by Nuveen, and this fund has amassed over $1.36 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, NULV seeks to match the performance of the TIAA ESG USA Large-Cap Value Index.
The TIAA ESG USA Large-Cap Value Index comprises of equity securities issued by large capitalization companies listed on US exchanges. It uses a rules-based methodology that seeks to provide investment exposure generally replicating large-cap value benchmarks through a portfolio of securities adhering to predetermined ESG, controversial business involvement & low-carbon criteria.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for NULV are 0.25%, which makes it on par with most peer products in the space.
NULV's 12-month trailing dividend yield is 4.80%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 21.30% of the portfolio. Healthcare and Consumer Staples round out the top three.
Taking into account individual holdings, Procter & Gamble Co/the (PG - Free Report) accounts for about 2.97% of the fund's total assets, followed by Home Depot Inc (HD - Free Report) and Pepsico Inc (PEP - Free Report) .
The top 10 holdings account for about 22.17% of total assets under management.
Performance and Risk
Year-to-date, the Nuveen ESG LargeCap Value ETF has lost about -5.91% so far, and was up about 6.64% over the last 12 months (as of 03/16/2022). NULV has traded between $35.33 and $39.88 in this past 52-week period.
The ETF has a beta of 0.96 and standard deviation of 22.51% for the trailing three-year period. With about 118 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG LargeCap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD - Free Report) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $6.99 billion in assets, iShares ESG Aware MSCI USA ETF has $23.19 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Nuveen ESG LargeCap Value ETF (NULV) a Strong ETF Right Now?
The Nuveen ESG LargeCap Value ETF (NULV - Free Report) was launched on 12/13/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
NULV is managed by Nuveen, and this fund has amassed over $1.36 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, NULV seeks to match the performance of the TIAA ESG USA Large-Cap Value Index.
The TIAA ESG USA Large-Cap Value Index comprises of equity securities issued by large capitalization companies listed on US exchanges. It uses a rules-based methodology that seeks to provide investment exposure generally replicating large-cap value benchmarks through a portfolio of securities adhering to predetermined ESG, controversial business involvement & low-carbon criteria.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for NULV are 0.25%, which makes it on par with most peer products in the space.
NULV's 12-month trailing dividend yield is 4.80%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 21.30% of the portfolio. Healthcare and Consumer Staples round out the top three.
Taking into account individual holdings, Procter & Gamble Co/the (PG - Free Report) accounts for about 2.97% of the fund's total assets, followed by Home Depot Inc (HD - Free Report) and Pepsico Inc (PEP - Free Report) .
The top 10 holdings account for about 22.17% of total assets under management.
Performance and Risk
Year-to-date, the Nuveen ESG LargeCap Value ETF has lost about -5.91% so far, and was up about 6.64% over the last 12 months (as of 03/16/2022). NULV has traded between $35.33 and $39.88 in this past 52-week period.
The ETF has a beta of 0.96 and standard deviation of 22.51% for the trailing three-year period. With about 118 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG LargeCap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD - Free Report) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $6.99 billion in assets, iShares ESG Aware MSCI USA ETF has $23.19 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.