Is Nuveen ESG Small-Cap ETF (NUSC) a Sturdy ETF Proper Now?

Designed to offer broad publicity to the Fashion Field – Small Cap Development class of the market, the Nuveen ESG Small-Cap ETF (NUSC) is a great beta trade traded fund launched on 12/13/2016.

What Are Good Beta ETFs?

For a very long time now, the ETF trade has been flooded with merchandise based mostly on market capitalization weighted indexes, that are designed to symbolize the broader market or a selected market section.

As a result of market cap weighted indexes present a low-cost, handy, and clear means of replicating market returns, they work nicely for traders who imagine in market effectivity.

For those who’re the type of investor who would reasonably attempt to beat the market via good inventory choice, then good beta funds are your best option; this fund class is thought for monitoring non-cap weighted methods.

Non-cap weighted indexes strive to decide on shares which have a greater probability of risk-return efficiency, which is predicated on particular elementary traits, or a mixture of different such traits.

This space provides many alternative funding selections, reminiscent of easiest equal-weighting, elementary weighting and volatility/momentum based mostly weighting methodologies; nonetheless, not all of those methods can ship superior outcomes.

Fund Sponsor & Index

The fund is managed by Nuveen. NUSC has been capable of amass belongings over $1.20 billion, making it one of many common sized ETFs within the Fashion Field – Small Cap Development. NUSC, earlier than charges and bills, seeks to match the efficiency of the TIAA ESG Small-Cap Index.

The Nuveen ESG USA Small-Cap Index composed of fairness securities issued by small-capitalization firms listed on U.S. exchanges.

Value & Different Bills

Since cheaper funds have a tendency to supply higher outcomes than dearer funds, assuming all different components stay equal, it will be significant for traders to concentrate to an ETF’s expense ratio.

Working bills on an annual foundation are 0.31% for NUSC, making it on par with most peer merchandise within the house.

It has a 12-month trailing dividend yield of 1.20%.

Sector Publicity and Prime Holdings

Most ETFs are very clear merchandise, and disclose their holdings every day. ETFs additionally provide diversified publicity, which minimizes single inventory threat, although it is nonetheless vital for traders to analysis a fund’s holdings.

For NUSC, it has heaviest allocation within the Financials sector –about 19% of the portfolio –while Industrials and Shopper Discretionary spherical out the highest three.

While you take a look at particular person holdings, East West Bancorp Inc (EWBC) accounts for about 1% of the fund’s complete belongings, adopted by Murphy Usd Inc (MUSA) and Rexford Industrial Realty (REXR).

NUSC’s prime 10 holdings account for about 8.15% of its complete belongings underneath administration.

Efficiency and Danger

Yr-to-date, the Nuveen ESG Small-Cap ETF has misplaced about -4.14% thus far, and was up about 1.58% during the last 12 months (as of 03/06/2025). NUSC has traded between $38.12 and $46.20 on this previous 52-week interval.

The fund has a beta of 1.16 and customary deviation of 21.14% for the trailing three-year interval. With about 503 holdings, it successfully diversifies company-specific threat.

Options

Nuveen ESG Small-Cap ETF is an inexpensive possibility for traders searching for to outperform the Fashion Field – Small Cap Development section of the market. Nevertheless, there are different ETFs within the house which traders might think about.

IShares ESG Conscious MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index and the JPMorgan Nasdaq Fairness Premium Earnings ETF (JEPQ) tracks —————————————-. IShares ESG Conscious MSCI USA ETF has $13.45 billion in belongings, JPMorgan Nasdaq Fairness Premium Earnings ETF has $23.09 billion. ESGU has an expense ratio of 0.15% and JEPQ prices 0.35%.

Traders searching for cheaper and lower-risk choices ought to think about conventional market cap weighted ETFs that goal to match the returns of the Fashion Field – Small Cap Development.

Backside Line

To be taught extra about this product and different ETFs, display screen for merchandise that match your funding targets and browse articles on newest developments within the ETF investing universe, please go to Zacks ETF Center.