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Is Nuveen ESG Large-Cap Value ETF (NULV) a Strong ETF Right Now?
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Making its debut on 12/13/2016, smart beta exchange traded fund Nuveen ESG Large-Cap Value ETF (NULV - Free Report) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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.
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.
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.
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.
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
Because the fund has amassed over $1.68 billion, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. NULV is managed by Nuveen. NULV, before fees and expenses, seeks to match the performance of the TIAA ESG USA Large-Cap Value Index.
The Nuveen ESG USA Large-Cap Value 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.
Annual operating expenses for NULV are 0.26%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.01%.
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.
NULV's heaviest allocation is in the Financials sector, which is about 24.20% of the portfolio. Its Healthcare and Industrials round out the top three.
Taking into account individual holdings, Coca Cola Co. (KO - Free Report) accounts for about 2.33% of the fund's total assets, followed by Walt Disney Co/the (DIS - Free Report) and International Business Ma (IBM - Free Report) .
NULV's top 10 holdings account for about 20.54% of its total assets under management.
Performance and Risk
Year-to-date, the Nuveen ESG Large-Cap Value ETF has added roughly 3.91% so far, and is up about 15.57% over the last 12 months (as of 02/04/2025). NULV has traded between $35.77 and $43.28 in this past 52-week period.
The ETF has a beta of 0.94 and standard deviation of 14.70% for the trailing three-year period. With about 113 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Large-Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large 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 $14.11 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $22.32 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 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 Large-Cap Value ETF (NULV) a Strong ETF Right Now?
Making its debut on 12/13/2016, smart beta exchange traded fund Nuveen ESG Large-Cap Value ETF (NULV - Free Report) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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.
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.
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.
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.
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
Because the fund has amassed over $1.68 billion, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. NULV is managed by Nuveen. NULV, before fees and expenses, seeks to match the performance of the TIAA ESG USA Large-Cap Value Index.
The Nuveen ESG USA Large-Cap Value 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.
Annual operating expenses for NULV are 0.26%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.01%.
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.
NULV's heaviest allocation is in the Financials sector, which is about 24.20% of the portfolio. Its Healthcare and Industrials round out the top three.
Taking into account individual holdings, Coca Cola Co. (KO - Free Report) accounts for about 2.33% of the fund's total assets, followed by Walt Disney Co/the (DIS - Free Report) and International Business Ma (IBM - Free Report) .
NULV's top 10 holdings account for about 20.54% of its total assets under management.
Performance and Risk
Year-to-date, the Nuveen ESG Large-Cap Value ETF has added roughly 3.91% so far, and is up about 15.57% over the last 12 months (as of 02/04/2025). NULV has traded between $35.77 and $43.28 in this past 52-week period.
The ETF has a beta of 0.94 and standard deviation of 14.70% for the trailing three-year period. With about 113 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Large-Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large 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 $14.11 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $22.32 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 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.