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Is Nuveen ESG Large-Cap Value ETF (NULV) a Strong ETF Right Now?
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The Nuveen ESG Large-Cap Value ETF (NULV - Free Report) made its debut on 12/13/2016, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
The fund is sponsored by Nuveen. It has amassed assets over $1.40 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. NULV seeks to match the performance of the TIAA ESG USA Large-Cap Value Index before fees and expenses.
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.
Operating expenses on an annual basis are 0.26% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.12%.
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.
NULV's heaviest allocation is in the Financials sector, which is about 18.80% of the portfolio. Its Healthcare and Information Technology round out the top three.
When you look at individual holdings, Jpmorgan Chase & Co (JPM - Free Report) accounts for about 3.54% of the fund's total assets, followed by Unitedhealth Group Inc (UNH - Free Report) and Merck & Co. Inc. (MRK - Free Report) .
The top 10 holdings account for about 24.51% of total assets under management.
Performance and Risk
The ETF return is roughly 0.29% and is down about -0.41% so far this year and in the past one year (as of 11/17/2023), respectively. NULV has traded between $32.04 and $36.50 during this last 52-week period.
NULV has a beta of 0.94 and standard deviation of 15.36% for the trailing three-year period. With about 96 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Large-Cap Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
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 $7.08 billion in assets, iShares ESG Aware MSCI USA ETF has $12.57 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.
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Is Nuveen ESG Large-Cap Value ETF (NULV) a Strong ETF Right Now?
The Nuveen ESG Large-Cap Value ETF (NULV - Free Report) made its debut on 12/13/2016, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
The fund is sponsored by Nuveen. It has amassed assets over $1.40 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. NULV seeks to match the performance of the TIAA ESG USA Large-Cap Value Index before fees and expenses.
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.
Operating expenses on an annual basis are 0.26% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.12%.
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.
NULV's heaviest allocation is in the Financials sector, which is about 18.80% of the portfolio. Its Healthcare and Information Technology round out the top three.
When you look at individual holdings, Jpmorgan Chase & Co (JPM - Free Report) accounts for about 3.54% of the fund's total assets, followed by Unitedhealth Group Inc (UNH - Free Report) and Merck & Co. Inc. (MRK - Free Report) .
The top 10 holdings account for about 24.51% of total assets under management.
Performance and Risk
The ETF return is roughly 0.29% and is down about -0.41% so far this year and in the past one year (as of 11/17/2023), respectively. NULV has traded between $32.04 and $36.50 during this last 52-week period.
NULV has a beta of 0.94 and standard deviation of 15.36% for the trailing three-year period. With about 96 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Large-Cap Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
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 $7.08 billion in assets, iShares ESG Aware MSCI USA ETF has $12.57 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.