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Is Nuveen ESG Mid-Cap Growth ETF (NUMG) a Strong ETF Right Now?
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Launched on 12/13/2016, the Nuveen ESG Mid-Cap Growth ETF (NUMG - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Mid Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $377.07 million, this makes it one of the average sized ETFs in the Style Box - Mid Cap Growth. NUMG is managed by Nuveen. This particular fund seeks to match the performance of the TIAA ESG USA Mid-Cap Growth Index before fees and expenses.
The TIAA ESG USA Mid-Cap Growth Index comprises of equity securities issued by mid- capitalization companies listed on US exchanges. It uses a rules-based methodology that provides investment exposure that generally replicates that of mid-cap growth benchmarks through a portfolio of securities that adhere to predetermined ESG, controversial business involvement and low-carbon screening criteria.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for NUMG are 0.31%, which makes it on par with most peer products in the space.
NUMG's 12-month trailing dividend yield is 0.18%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Information Technology sector - about 32.90% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Ww Grainger Inc (GWW - Free Report) accounts for about 3.11% of total assets, followed by Gartner Inc (IT - Free Report) and Quanta Services Inc (PWR - Free Report) .
The top 10 holdings account for about 27.84% of total assets under management.
Performance and Risk
The ETF has lost about -2.65% and was up about 14.90% so far this year and in the past one year (as of 01/10/2024), respectively. NUMG has traded between $33.95 and $42.66 during this last 52-week period.
The fund has a beta of 1.11 and standard deviation of 24.45% for the trailing three-year period. With about 58 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Mid-Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Mid Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ - Free Report) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $8.50 billion in assets, iShares ESG Aware MSCI USA ETF has $13.38 billion. JEPQ has an expense ratio of 0.35% 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 - Mid Cap Growth.
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.
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Is Nuveen ESG Mid-Cap Growth ETF (NUMG) a Strong ETF Right Now?
Launched on 12/13/2016, the Nuveen ESG Mid-Cap Growth ETF (NUMG - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Mid Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $377.07 million, this makes it one of the average sized ETFs in the Style Box - Mid Cap Growth. NUMG is managed by Nuveen. This particular fund seeks to match the performance of the TIAA ESG USA Mid-Cap Growth Index before fees and expenses.
The TIAA ESG USA Mid-Cap Growth Index comprises of equity securities issued by mid- capitalization companies listed on US exchanges. It uses a rules-based methodology that provides investment exposure that generally replicates that of mid-cap growth benchmarks through a portfolio of securities that adhere to predetermined ESG, controversial business involvement and low-carbon screening criteria.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for NUMG are 0.31%, which makes it on par with most peer products in the space.
NUMG's 12-month trailing dividend yield is 0.18%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Information Technology sector - about 32.90% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Ww Grainger Inc (GWW - Free Report) accounts for about 3.11% of total assets, followed by Gartner Inc (IT - Free Report) and Quanta Services Inc (PWR - Free Report) .
The top 10 holdings account for about 27.84% of total assets under management.
Performance and Risk
The ETF has lost about -2.65% and was up about 14.90% so far this year and in the past one year (as of 01/10/2024), respectively. NUMG has traded between $33.95 and $42.66 during this last 52-week period.
The fund has a beta of 1.11 and standard deviation of 24.45% for the trailing three-year period. With about 58 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Mid-Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Mid Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ - Free Report) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $8.50 billion in assets, iShares ESG Aware MSCI USA ETF has $13.38 billion. JEPQ has an expense ratio of 0.35% 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 - Mid Cap Growth.
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.