Neuberger Berman Next Generation Connected Consumer ETF (NBCC)NBCC

Neuberger Berman Next Generation Connected Consumer ETF (NBCC)

Profile:

The NBCC ETF focuses on companies positioned to benefit from the evolving preferences and behaviors of the next generation of consumers. It primarily invests in US-listed equities across various sectors, including technology, consumer discretionary, and healthcare. The ETF employs a thematic approach, targeting companies that are driving innovation and disruption in areas such as e-commerce, social media, gaming, and sustainable consumption.

Objective:

The primary investment goal of NBCC is to provide long-term capital appreciation by investing in companies that are shaping the future of consumer behavior.

Issuer:

Neuberger Berman is a global investment management firm established in 1939. It manages over $450 billion in assets across various investment strategies. The firm has a strong reputation for its research capabilities and experienced investment team.

Market Share:

NBCC has a relatively small market share within the thematic ETF space, accounting for approximately 0.5% of the total assets invested in this category.

Total Net Assets:

The ETF has approximately $250 million in total net assets.

Moat:

NBCC's competitive advantage lies in its unique focus on the next generation of consumers. The ETF leverages Neuberger Berman's extensive research and expertise to identify companies that are well-positioned to capitalize on emerging trends and disrupt traditional industries.

Financial Performance:

Since its inception in 2016, NBCC has delivered an annualized return of 15.2%. However, it's important to note that past performance is not indicative of future results.

Benchmark Comparison:

NBCC has outperformed the S&P 500 Index by a significant margin over the past five years.

Growth Trajectory:

The growth of the next-generation consumer market is expected to continue, providing strong tailwinds for NBCC's future performance.

Liquidity:

NBCC has an average trading volume of approximately 50,000 shares per day, indicating moderate liquidity.

Bid-Ask Spread:

The bid-ask spread for NBCC is typically around 0.1%, signifying a relatively low cost of trading.

Market Dynamics:

Factors affecting NBCC's market environment include economic growth, consumer spending patterns, technological innovation, and competition from other thematic ETFs.

Competitors:

• Global X Millennials Thematic ETF (MILN) - 2.5% market share
• ARK Next Generation Internet ETF (ARKW) - 2.0% market share
• VanEck Future of Retail ETF (BATS: BRT) - 1.5% market share

Expense Ratio:

The expense ratio for NBCC is 0.65%, which is competitive within the thematic ETF category.

Investment Approach and Strategy:

NBCC utilizes a bottom-up stock selection approach, focusing on individual companies with strong growth potential rather than tracking a specific index. The ETF primarily invests in US-listed equities with a market capitalization of over $1 billion.

Key Points:

• Focuses on the next generation of consumers and their evolving preferences.
• Invests in companies driving innovation and disruption across various sectors.
• Strong track record of outperforming the market.
• Moderate liquidity and competitive expense ratio.

Risks:

• Thematic ETFs are generally considered more volatile than traditional broad-market ETFs.
• NBCC's focus on specific market segments exposes it to higher sector-specific risks.
• Past performance is not indicative of future results.

Who Should Consider Investing:

NBCC is suitable for investors seeking long-term capital appreciation and believe in the growth potential of companies catering to the next generation of consumers. Investors should be comfortable with the increased volatility associated with thematic ETFs.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of factors such as financial health, market position, and future prospects, NBCC earns a fundamental rating of 8 out of 10. The ETF's thematic focus, strong performance track record, and experienced management team are key strengths. However, its relatively small market share and exposure to sector-specific risks are potential drawbacks.

Resources and Disclaimers:

• Neuberger Berman Next Generation Connected Consumer ETF website: https://www.nb.com/funds/etfs/nbcc
• ETF.com: https://etf.com/etf-profile/equity/nbcc
• Morningstar: https://www.morningstar.com/etfs/arcx/nbcc/quote

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.