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Is Nuveen ESG Small-Cap ETF (NUSC) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - Small Cap Growth category of the market, the Nuveen ESG Small-Cap ETF (NUSC - Free Report) is a smart beta exchange traded fund launched on 12/13/2016.
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.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $1.10 billion, this makes it one of the larger ETFs in the Style Box - Small Cap Growth. NUSC is managed by Nuveen. NUSC seeks to match the performance of the TIAA ESG Small-Cap Index before fees and expenses.
The TIAA ESG USA Small-Cap Index comprises of equity securities issued by small-capitalization companies listed on US exchanges.
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.
Operating expenses on an annual basis are 0.31% for NUSC, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.12%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For NUSC, it has heaviest allocation in the Industrials sector --about 19.20% of the portfolio --while Consumer Discretionary and Financials round out the top three.
Taking into account individual holdings, Service Corp International (SCI - Free Report) accounts for about 1.02% of the fund's total assets, followed by Murphy Usa Inc (MUSA - Free Report) and Emcor Group Inc (EME - Free Report) .
NUSC's top 10 holdings account for about 8.59% of its total assets under management.
Performance and Risk
The ETF has lost about -0.43% so far this year and was up about 14% in the last one year (as of 04/26/2024). In the past 52-week period, it has traded between $31.77 and $41.59.
NUSC has a beta of 1.13 and standard deviation of 21.58% for the trailing three-year period. With about 515 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Small-Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
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 $12.03 billion in assets, iShares ESG Aware MSCI USA ETF has $12.16 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 - Small 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 Small-Cap ETF (NUSC) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - Small Cap Growth category of the market, the Nuveen ESG Small-Cap ETF (NUSC - Free Report) is a smart beta exchange traded fund launched on 12/13/2016.
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.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $1.10 billion, this makes it one of the larger ETFs in the Style Box - Small Cap Growth. NUSC is managed by Nuveen. NUSC seeks to match the performance of the TIAA ESG Small-Cap Index before fees and expenses.
The TIAA ESG USA Small-Cap Index comprises of equity securities issued by small-capitalization companies listed on US exchanges.
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.
Operating expenses on an annual basis are 0.31% for NUSC, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.12%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For NUSC, it has heaviest allocation in the Industrials sector --about 19.20% of the portfolio --while Consumer Discretionary and Financials round out the top three.
Taking into account individual holdings, Service Corp International (SCI - Free Report) accounts for about 1.02% of the fund's total assets, followed by Murphy Usa Inc (MUSA - Free Report) and Emcor Group Inc (EME - Free Report) .
NUSC's top 10 holdings account for about 8.59% of its total assets under management.
Performance and Risk
The ETF has lost about -0.43% so far this year and was up about 14% in the last one year (as of 04/26/2024). In the past 52-week period, it has traded between $31.77 and $41.59.
NUSC has a beta of 1.13 and standard deviation of 21.58% for the trailing three-year period. With about 515 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Small-Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
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 $12.03 billion in assets, iShares ESG Aware MSCI USA ETF has $12.16 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 - Small 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.