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Is Nuveen ESG Mid-Cap Value ETF (NUMV) a Strong ETF Right Now?

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Designed to provide broad exposure to the Style Box - Mid Cap Value category of the market, the Nuveen ESG Mid-Cap Value ETF (NUMV - Free Report) is a smart beta exchange traded fund launched on 12/13/2016.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

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.

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.

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

The fund is sponsored by Nuveen. It has amassed assets over $363.12 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the TIAA ESG USA Mid-Cap Value Index.

The Nuveen ESG USA Mid-Cap Value Index primarily composes of equity securities issued by mid-capitalization companies listed on U.S. exchanges.

Cost & Other Expenses

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

With on par with most peer products in the space, this ETF has annual operating expenses of 0.31%.

The fund has a 12-month trailing dividend yield of 1.76%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

NUMV's heaviest allocation is in the Financials sector, which is about 18.80% of the portfolio. Its Industrials and Information Technology round out the top three.

Looking at individual holdings, Oneok Inc. (OKE - Free Report) accounts for about 2.42% of total assets, followed by United Rentals Inc. (URI - Free Report) and Baker Hughes Co (BKR - Free Report) .

The top 10 holdings account for about 19.12% of total assets under management.

Performance and Risk

The ETF has gained about 2.30% so far this year and is up about 16.15% in the last one year (as of 02/17/2025). In the past 52-week period, it has traded between $31.43 and $38.29.

The fund has a beta of 1.10 and standard deviation of 17.99% for the trailing three-year period. With about 100 holdings, it effectively diversifies company-specific risk.

Alternatives

Nuveen ESG Mid-Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.

IShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ - Free Report) tracks ----------------------------------------. IShares ESG Aware MSCI USA ETF has $14.22 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $23.47 billion. ESGU has an expense ratio of 0.15% and JEPQ charges 0.35%.

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 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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