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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?
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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
Because the fund has amassed over $369.46 million, this makes it one of the average sized ETFs in the Style Box - Mid Cap Value. NUMV is managed by Nuveen. Before fees and expenses, NUMV seeks to match the performance of the TIAA ESG USA Mid-Cap Value Index.
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
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.31%.
NUMV's 12-month trailing dividend yield is 1.90%.
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.
For NUMV, it has heaviest allocation in the Financials sector --about 17.40% of the portfolio --while Industrials and Information Technology round out the top three.
Taking into account individual holdings, Oneok Inc. (OKE - Free Report) accounts for about 2.47% of the fund's total assets, followed by United Rentals Inc. (URI - Free Report) and Hartford Financial Svc (HIG - Free Report) .
NUMV's top 10 holdings account for about 20.21% of its total assets under management.
Performance and Risk
The ETF has added roughly 16.14% and is up about 31.70% so far this year and in the past one year (as of 10/14/2024), respectively. NUMV has traded between $26.41 and $36.84 during this last 52-week period.
NUMV has a beta of 1.08 and standard deviation of 18.39% for the trailing three-year period. With about 94 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 $13.56 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $17.12 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?
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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
Because the fund has amassed over $369.46 million, this makes it one of the average sized ETFs in the Style Box - Mid Cap Value. NUMV is managed by Nuveen. Before fees and expenses, NUMV seeks to match the performance of the TIAA ESG USA Mid-Cap Value Index.
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
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.31%.
NUMV's 12-month trailing dividend yield is 1.90%.
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.
For NUMV, it has heaviest allocation in the Financials sector --about 17.40% of the portfolio --while Industrials and Information Technology round out the top three.
Taking into account individual holdings, Oneok Inc. (OKE - Free Report) accounts for about 2.47% of the fund's total assets, followed by United Rentals Inc. (URI - Free Report) and Hartford Financial Svc (HIG - Free Report) .
NUMV's top 10 holdings account for about 20.21% of its total assets under management.
Performance and Risk
The ETF has added roughly 16.14% and is up about 31.70% so far this year and in the past one year (as of 10/14/2024), respectively. NUMV has traded between $26.41 and $36.84 during this last 52-week period.
NUMV has a beta of 1.08 and standard deviation of 18.39% for the trailing three-year period. With about 94 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 $13.56 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $17.12 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.