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Is Nuveen ESG Small-Cap ETF (NUSC) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - Small Cap Growth category of the market, the Nuveen ESG Small-Cap ETF (NUSC - Free Report) is a smart beta exchange traded fund launched on 12/13/2016.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
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.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Nuveen. NUSC has been able to amass assets over $1.28 billion, making 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
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.
Annual operating expenses for this ETF are 0.31%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.96%.
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.
Representing 19.7% of the portfolio, the fund has heaviest allocation to the Industrials sector; Financials and Information Technology round out the top three.
Taking into account individual holdings, Technipfmc Plc (FTI) accounts for about 1.44% of the fund's total assets, followed by Moderna Inc (MRNA) and Carpenter Technology Corp (CRS).
NUSC's top 10 holdings account for about 10.84% of its total assets under management.
Performance and Risk
The ETF return is roughly 8.67% and it's up approximately 21.38% so far this year and in the past one year (as of 05/21/2026), respectively. NUSC has traded between $39.04 and $49.68 during this last 52-week period.
The ETF has a beta of 1.05 and standard deviation of 19.39% for the trailing three-year period. With about 440 holdings, it effectively diversifies company-specific risk .
Alternatives
Nuveen ESG Small-Cap ETF is not a suitable option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard ESG U.S. Stock ETF Shares (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 Shares has $12.92 billion in assets, iShares ESG Aware MSCI USA ETF has $17.18 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.
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Is Nuveen ESG Small-Cap ETF (NUSC) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - Small Cap Growth category of the market, the Nuveen ESG Small-Cap ETF (NUSC - Free Report) is a smart beta exchange traded fund launched on 12/13/2016.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
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.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Nuveen. NUSC has been able to amass assets over $1.28 billion, making 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
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.
Annual operating expenses for this ETF are 0.31%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.96%.
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.
Representing 19.7% of the portfolio, the fund has heaviest allocation to the Industrials sector; Financials and Information Technology round out the top three.
Taking into account individual holdings, Technipfmc Plc (FTI) accounts for about 1.44% of the fund's total assets, followed by Moderna Inc (MRNA) and Carpenter Technology Corp (CRS).
NUSC's top 10 holdings account for about 10.84% of its total assets under management.
Performance and Risk
The ETF return is roughly 8.67% and it's up approximately 21.38% so far this year and in the past one year (as of 05/21/2026), respectively. NUSC has traded between $39.04 and $49.68 during this last 52-week period.
The ETF has a beta of 1.05 and standard deviation of 19.39% for the trailing three-year period. With about 440 holdings, it effectively diversifies company-specific risk .
Alternatives
Nuveen ESG Small-Cap ETF is not a suitable option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard ESG U.S. Stock ETF Shares (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 Shares has $12.92 billion in assets, iShares ESG Aware MSCI USA ETF has $17.18 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.