We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Nuveen ESG Small-Cap ETF (NUSC) a Strong ETF Right Now?
Read MoreHide Full Article
The Nuveen ESG Small-Cap ETF (NUSC - 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 - Small Cap Growth 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.
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.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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 managed by Nuveen, and has been able to amass over $1.08 billion, which makes it one of the average sized ETFs in the Style Box - Small Cap Growth. Before fees and expenses, NUSC seeks to match the performance of the TIAA ESG Small-Cap Index.
The Nuveen ESG USA Small-Cap Index composed of equity securities issued by small-capitalization companies listed on U.S. exchanges.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for NUSC are 0.31%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.26%.
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.
NUSC's heaviest allocation is in the Financials sector, which is about 18.90% of the portfolio. Its Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, East West Bancorp Inc (EWBC - Free Report) accounts for about 1.02% of the fund's total assets, followed by Gamestop Corp.(new) Cl. A (GME - Free Report) and Technipfmc Plc (FTI - Free Report) .
Its top 10 holdings account for approximately 8.73% of NUSC's total assets under management.
Performance and Risk
The ETF has lost about -8.96% and is down about -3.40% so far this year and in the past one year (as of 05/07/2025), respectively. NUSC has traded between $33.38 and $46.20 during this last 52-week period.
NUSC has a beta of 1.08 and standard deviation of 22.11% for the trailing three-year period. With about 471 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.
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 $12.67 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $24.45 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 - 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Nuveen ESG Small-Cap ETF (NUSC) a Strong ETF Right Now?
The Nuveen ESG Small-Cap ETF (NUSC - 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 - Small Cap Growth 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.
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.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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 managed by Nuveen, and has been able to amass over $1.08 billion, which makes it one of the average sized ETFs in the Style Box - Small Cap Growth. Before fees and expenses, NUSC seeks to match the performance of the TIAA ESG Small-Cap Index.
The Nuveen ESG USA Small-Cap Index composed of equity securities issued by small-capitalization companies listed on U.S. exchanges.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for NUSC are 0.31%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.26%.
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.
NUSC's heaviest allocation is in the Financials sector, which is about 18.90% of the portfolio. Its Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, East West Bancorp Inc (EWBC - Free Report) accounts for about 1.02% of the fund's total assets, followed by Gamestop Corp.(new) Cl. A (GME - Free Report) and Technipfmc Plc (FTI - Free Report) .
Its top 10 holdings account for approximately 8.73% of NUSC's total assets under management.
Performance and Risk
The ETF has lost about -8.96% and is down about -3.40% so far this year and in the past one year (as of 05/07/2025), respectively. NUSC has traded between $33.38 and $46.20 during this last 52-week period.
NUSC has a beta of 1.08 and standard deviation of 22.11% for the trailing three-year period. With about 471 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.
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 $12.67 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $24.45 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 - 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.