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Is Nuveen ESG Mid-Cap Value ETF (NUMV) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - Mid Cap Value category of the market, the Nuveen ESG Mid-Cap Value ETF (NUMV - Free Report) is a smart beta exchange traded fund launched on 12/13/2016.
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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide 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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
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
The fund is sponsored by Nuveen. It has amassed assets over $342.13 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. NUMV seeks to match the performance of the TIAA ESG USA Mid-Cap Value Index before fees and expenses.
The TIAA ESG USA Mid-Cap Value Index comprises of equity securities issued by mid- capitalization companies listed on US exchanges. It uses a rules-based methodology that seeks to provide investment exposure that generally replicates mid-cap value benchmarks through a portfolio of securities that adhere to predetermined ESG, controversial business involvement and low-carbon screening criteria.
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 NUMV are 0.31%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.03%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
NUMV's heaviest allocation is in the Financials sector, which is about 17.20% of the portfolio. Its Industrials and Information Technology round out the top three.
When you look at individual holdings, Oneok Inc. (OKE - Free Report) accounts for about 2.50% of the fund's total assets, followed by United Rentals Inc. (URI - Free Report) and Ferguson Plc (FERG - Free Report) .
The top 10 holdings account for about 21.13% of total assets under management.
Performance and Risk
The ETF return is roughly 8.59% so far this year and is up about 14.76% in the last one year (as of 08/14/2024). In the past 52-week period, it has traded between $26.41 and $35.22.
The fund has a beta of 1.09 and standard deviation of 18.53% for the trailing three-year period. With about 91 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Mid-Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ - Free Report) tracks ----------------------------------------. IShares ESG Aware MSCI USA ETF has $12.48 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $15.11 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 Value.
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 Mid-Cap Value ETF (NUMV) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - Mid Cap Value category of the market, the Nuveen ESG Mid-Cap Value ETF (NUMV - Free Report) is a smart beta exchange traded fund launched on 12/13/2016.
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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide 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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
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
The fund is sponsored by Nuveen. It has amassed assets over $342.13 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. NUMV seeks to match the performance of the TIAA ESG USA Mid-Cap Value Index before fees and expenses.
The TIAA ESG USA Mid-Cap Value Index comprises of equity securities issued by mid- capitalization companies listed on US exchanges. It uses a rules-based methodology that seeks to provide investment exposure that generally replicates mid-cap value benchmarks through a portfolio of securities that adhere to predetermined ESG, controversial business involvement and low-carbon screening criteria.
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 NUMV are 0.31%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.03%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
NUMV's heaviest allocation is in the Financials sector, which is about 17.20% of the portfolio. Its Industrials and Information Technology round out the top three.
When you look at individual holdings, Oneok Inc. (OKE - Free Report) accounts for about 2.50% of the fund's total assets, followed by United Rentals Inc. (URI - Free Report) and Ferguson Plc (FERG - Free Report) .
The top 10 holdings account for about 21.13% of total assets under management.
Performance and Risk
The ETF return is roughly 8.59% so far this year and is up about 14.76% in the last one year (as of 08/14/2024). In the past 52-week period, it has traded between $26.41 and $35.22.
The fund has a beta of 1.09 and standard deviation of 18.53% for the trailing three-year period. With about 91 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Mid-Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ - Free Report) tracks ----------------------------------------. IShares ESG Aware MSCI USA ETF has $12.48 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $15.11 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 Value.
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.