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Is Nuveen ESG Emerging Markets Equity ETF (NUEM) a Strong ETF Right Now?

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Launched on 06/07/2017, the Nuveen ESG Emerging Markets Equity ETF (NUEM - Free Report) is a smart beta exchange traded fund offering broad exposure to the Broad Emerging Market ETFs category of the market.

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.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

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.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

NUEM is managed by Nuveen, and this fund has amassed over $324.05 million, which makes it one of the average sized ETFs in the Broad Emerging Market ETFs. Before fees and expenses, this particular fund seeks to match the performance of the TIAA ESG Emerging Markets Equity Index.

The Nuveen ESG Emerging Markets Equity Index uses a rules-based methodology to arrive at a diversified portfolio of equity securities issued by companies located in countries with emerging markets that adhere to predetermined ESG, controversial business involvement and low-carbon screen criteria.

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.

Operating expenses on an annual basis are 0.36% for this ETF, which makes it on par with most peer products in the space.

NUEM's 12-month trailing dividend yield is 1.55%.

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.

Looking at individual holdings, Taiwan Semiconductor Manu accounts for about 13.19% of total assets, followed by Delta Electronics Inc and Hdfc Bank Ltd (HDFCB).

Its top 10 holdings account for approximately 29.68% of NUEM's total assets under management.

Performance and Risk

Year-to-date, the Nuveen ESG Emerging Markets Equity ETF has added roughly 25.84% so far, and is up about 19.29% over the last 12 months (as of 10/23/2025). NUEM has traded between $25.97 $37.02 in this past 52-week period.

The ETF has a beta of 0.61 and standard deviation of 18.94% for the trailing three-year period. With about 229 holdings, it effectively diversifies company-specific risk .

Alternatives

Nuveen ESG Emerging Markets Equity ETF is a reasonable option for investors seeking to outperform the Broad Emerging Market ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF has $11.57 billion in assets, iShares ESG Aware MSCI USA ETF has $14.81 billion. ESGV has an expense ratio of 0.09% and ESGU changes 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 Broad Emerging Market ETFs

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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