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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 traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Nuveen. It has amassed assets over $373.93 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. Before fees and expenses, NUMV seeks to match the performance of the TIAA ESG USA Mid-Cap Value Index.
The Nuveen ESG USA Mid-Cap Value Index primarily composes of equity securities issued by mid-capitalization companies listed on U.S. exchanges.
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.
Annual operating expenses for NUMV are 0.31%, which makes it on par with most peer products in the space.
NUMV's 12-month trailing dividend yield is 0%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 18.20% 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 2.49% of the fund's total assets, followed by United Rentals Inc. (URI - Free Report) and Ferguson Enterprises Inc (FERG - Free Report) .
NUMV's top 10 holdings account for about 19.92% of its total assets under management.
Performance and Risk
The ETF has gained about 16.17% so far this year and it's up approximately 17.85% in the last one year (as of 12/17/2024). In the past 52-week period, it has traded between $30.40 and $38.29.
The fund has a beta of 1.09 and standard deviation of 18.21% for the trailing three-year period. With about 100 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 $13.78 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $20.40 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 traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Nuveen. It has amassed assets over $373.93 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. Before fees and expenses, NUMV seeks to match the performance of the TIAA ESG USA Mid-Cap Value Index.
The Nuveen ESG USA Mid-Cap Value Index primarily composes of equity securities issued by mid-capitalization companies listed on U.S. exchanges.
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.
Annual operating expenses for NUMV are 0.31%, which makes it on par with most peer products in the space.
NUMV's 12-month trailing dividend yield is 0%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 18.20% 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 2.49% of the fund's total assets, followed by United Rentals Inc. (URI - Free Report) and Ferguson Enterprises Inc (FERG - Free Report) .
NUMV's top 10 holdings account for about 19.92% of its total assets under management.
Performance and Risk
The ETF has gained about 16.17% so far this year and it's up approximately 17.85% in the last one year (as of 12/17/2024). In the past 52-week period, it has traded between $30.40 and $38.29.
The fund has a beta of 1.09 and standard deviation of 18.21% for the trailing three-year period. With about 100 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 $13.78 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $20.40 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.