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Is Nuveen ESG Large-Cap Value ETF (NULV) a Strong ETF Right Now?

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Making its debut on 12/13/2016, smart beta exchange traded fund Nuveen ESG Large-Cap Value ETF (NULV - Free Report) provides investors broad exposure to the Style Box - Large Cap Value 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 offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

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.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.

Fund Sponsor & Index

Managed by Nuveen, NULV has amassed assets over $1.54 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. NULV, before fees and expenses, seeks to match the performance of the TIAA ESG USA Large-Cap Value Index.

The Nuveen ESG USA Large-Cap Value Index composes of equity securities issued by large capitalization companies listed on U.S. 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.

With on par with most peer products in the space, this ETF has annual operating expenses of 0.26%.

It has a 12-month trailing dividend yield of 2.23%.

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.

Representing 22.90% of the portfolio, the fund has heaviest allocation to the Financials sector; Healthcare and Industrials round out the top three.

Taking into account individual holdings, Coca Cola Co. (KO - Free Report) accounts for about 2.47% of the fund's total assets, followed by Bank Of America Corp (BAC - Free Report) and International Business Ma (IBM - Free Report) .

The top 10 holdings account for about 20.42% of total assets under management.

Performance and Risk

The ETF has lost about -6.07% and is down about -0.41% so far this year and in the past one year (as of 04/07/2025), respectively. NULV has traded between $36.61 and $43.28 during this last 52-week period.

NULV has a beta of 0.87 and standard deviation of 14.91% for the trailing three-year period. With about 113 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 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 $11.72 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $20.85 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 - 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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