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
A smart beta exchange traded fund, the Nuveen ESG Small-Cap ETF (NUSC - Free Report) debuted on 12/13/2016, and offers broad exposure to the Style Box - Small Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
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
NUSC is managed by Nuveen, and this fund has amassed over $1.31 billion, which makes it one of the average sized ETFs in the Style Box - Small Cap Growth. This particular fund seeks to match the performance of the TIAA ESG Small-Cap Index before fees and expenses.
The Nuveen ESG USA Small-Cap Index composed of equity securities issued by small-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.
Annual operating expenses for NUSC are 0.31%, which makes it on par with most peer products in the space.
NUSC's 12-month trailing dividend yield is 1.00%.
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 18.4% of the portfolio --while Financials and Information Technology round out the top three.
When you look at individual holdings, Technipfmc Plc (FTI) accounts for about 1.13% of the fund's total assets, followed by Exact Sciences Corp (EXAS) and Ionis Pharmaceuticals Inc (IONS).
NUSC's top 10 holdings account for about 9.42% of its total assets under management.
Performance and Risk
Year-to-date, the Nuveen ESG Small-Cap ETF has gained about 4.83% so far, and was up about 12.08% over the last 12 months (as of 01/12/2026). NUSC has traded between $33.38 $46.81 in this past 52-week period.
NUSC has a beta of 1.05 and standard deviation of 19.57% for the trailing three-year period. With about 462 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.
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 $12.09 billion in assets, iShares ESG Aware MSCI USA ETF has $15.84 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 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?
A smart beta exchange traded fund, the Nuveen ESG Small-Cap ETF (NUSC - Free Report) debuted on 12/13/2016, and offers broad exposure to the Style Box - Small Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
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
NUSC is managed by Nuveen, and this fund has amassed over $1.31 billion, which makes it one of the average sized ETFs in the Style Box - Small Cap Growth. This particular fund seeks to match the performance of the TIAA ESG Small-Cap Index before fees and expenses.
The Nuveen ESG USA Small-Cap Index composed of equity securities issued by small-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.
Annual operating expenses for NUSC are 0.31%, which makes it on par with most peer products in the space.
NUSC's 12-month trailing dividend yield is 1.00%.
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 18.4% of the portfolio --while Financials and Information Technology round out the top three.
When you look at individual holdings, Technipfmc Plc (FTI) accounts for about 1.13% of the fund's total assets, followed by Exact Sciences Corp (EXAS) and Ionis Pharmaceuticals Inc (IONS).
NUSC's top 10 holdings account for about 9.42% of its total assets under management.
Performance and Risk
Year-to-date, the Nuveen ESG Small-Cap ETF has gained about 4.83% so far, and was up about 12.08% over the last 12 months (as of 01/12/2026). NUSC has traded between $33.38 $46.81 in this past 52-week period.
NUSC has a beta of 1.05 and standard deviation of 19.57% for the trailing three-year period. With about 462 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.
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 $12.09 billion in assets, iShares ESG Aware MSCI USA ETF has $15.84 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 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.