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Is Nuveen ESG Large-Cap Growth ETF (NULG) a Strong ETF Right Now?
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Launched on 12/13/2016, the Nuveen ESG Large-Cap Growth ETF (NULG - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
NULG is managed by Nuveen, and this fund has amassed over $1.54 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. This particular fund seeks to match the performance of the TIAA ESG USA Large-Cap Growth Index before fees and expenses.
The Nuveen ESG USA Large-Cap Growth Index composes of equity securities issued by large capitalization companies listed on U.S. exchanges.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.26%.
It has a 12-month trailing dividend yield of 0.16%.
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 NULG, it has heaviest allocation in the Information Technology sector --about 45% of the portfolio --while Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 13.75% of total assets, followed by Microsoft Corp (MSFT - Free Report) and Alphabet Inc (GOOG - Free Report) .
NULG's top 10 holdings account for about 50.08% of its total assets under management.
Performance and Risk
The ETF has gained about 1.67% and was up about 29.48% so far this year and in the past one year (as of 01/06/2025), respectively. NULG has traded between $68.60 and $90.90 during this last 52-week period.
The fund has a beta of 1.14 and standard deviation of 22.21% for the trailing three-year period. With about 76 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Large-Cap Growth ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Growth 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 $13.34 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $21 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 - Large 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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Is Nuveen ESG Large-Cap Growth ETF (NULG) a Strong ETF Right Now?
Launched on 12/13/2016, the Nuveen ESG Large-Cap Growth ETF (NULG - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
NULG is managed by Nuveen, and this fund has amassed over $1.54 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. This particular fund seeks to match the performance of the TIAA ESG USA Large-Cap Growth Index before fees and expenses.
The Nuveen ESG USA Large-Cap Growth Index composes of equity securities issued by large capitalization companies listed on U.S. exchanges.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.26%.
It has a 12-month trailing dividend yield of 0.16%.
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 NULG, it has heaviest allocation in the Information Technology sector --about 45% of the portfolio --while Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 13.75% of total assets, followed by Microsoft Corp (MSFT - Free Report) and Alphabet Inc (GOOG - Free Report) .
NULG's top 10 holdings account for about 50.08% of its total assets under management.
Performance and Risk
The ETF has gained about 1.67% and was up about 29.48% so far this year and in the past one year (as of 01/06/2025), respectively. NULG has traded between $68.60 and $90.90 during this last 52-week period.
The fund has a beta of 1.14 and standard deviation of 22.21% for the trailing three-year period. With about 76 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Large-Cap Growth ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Growth 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 $13.34 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $21 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 - Large 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.