Yahoo Finance Is Nuveen ESG Mid-Cap Growth ETF (NUMG) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - Mid Cap Growth category of the market, the Nuveen ESG Mid-Cap Growth ETF (NUMG) is a smart beta exchange traded fund launched on 12/13/2016.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
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
The fund is managed by Nuveen. NUMG has been able to amass assets over $389.42 million, making it one of the average sized ETFs in the Style Box - Mid Cap Growth. NUMG, before fees and expenses, seeks to match the performance of the TIAA ESG USA Mid-Cap Growth Index.
The TIAA ESG USA Mid-Cap Growth Index comprises of equity securities issued by mid- capitalization companies listed on US exchanges. It uses a rules-based methodology that provides investment exposure that generally replicates that of mid-cap growth benchmarks through a portfolio of securities that adhere to predetermined ESG, controversial business involvement and low-carbon screening criteria.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.31% for NUMG, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.17%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 31.20% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Ww Grainger Inc (GWW) accounts for about 3.37% of total assets, followed by Quanta Services Inc (PWR) and Gartner Inc (IT).
Its top 10 holdings account for approximately 27.98% of NUMG's total assets under management.
Performance and Risk
Year-to-date, the Nuveen ESG Mid-Cap Growth ETF has added about 1.65% so far, and was up about 18.58% over the last 12 months (as of 05/13/2024). NUMG has traded between $33.95 and $44.69 in this past 52-week period.
The fund has a beta of 1.11 and standard deviation of 23.72% for the trailing three-year period. With about 58 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Mid-Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Mid Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
IShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ----------------------------------------. IShares ESG Aware MSCI USA ETF has $12.81 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $13.02 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 - Mid 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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Nuveen ESG Mid-Cap Growth ETF (NUMG): ETF Research Reports
Quanta Services, Inc. (PWR) : Free Stock Analysis Report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports
