Neuberger Berman Commodity Strategy ETF (NBCM)NBCM

ETF Neuberger Berman Commodity Strategy ETF (JJB) Overview

Profile

JJB is an actively managed ETF that seeks to provide long-term capital appreciation through exposure to a diversified basket of commodity-related investments. This includes physical commodities, commodity-linked derivatives, and commodity-related equities. The ETF primarily focuses on the energy and agriculture sectors, with some exposure to industrial and precious metals.

Objective

The primary investment goal of JJB is to outperform the Bloomberg Commodity Index (BCOM) over a full market cycle.

Issuer

Neuberger Berman:

• Reputation and Reliability: Neuberger Berman is a well-established and reputable asset management firm with over 80 years of experience. As of 2023, they manage over $430 billion in assets across various investment strategies.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in commodity markets. The lead portfolio manager, Michael Hoff, has over 20 years of experience in the industry.

Market Share

JJB has a market share of approximately 0.5% within the commodity ETF sector.

Total Net Assets

As of November 2023, JJB has approximately $1.2 billion in total net assets.

Moat

JJB's competitive advantages include:

• Experienced Management Team: The portfolio managers have a strong track record in commodity investing.
• Active Management: The active management approach allows the team to adjust the portfolio based on market conditions and identify opportunities for alpha generation.
• Diversification: The ETF's exposure to various commodity sectors and investment types helps to mitigate risk.

Financial Performance

Historical Performance: JJB has outperformed the BCOM index over the past 3 and 5 years. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison: JJB has outperformed the BCOM index by an average of 1.5% annually over the past 5 years.

Growth Trajectory

The demand for commodities is expected to grow in the long term due to factors such as population growth and urbanization. This could benefit JJB's growth trajectory.

Liquidity

• Average Trading Volume: JJB has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.1%.

Market Dynamics

Factors affecting JJB's market environment include:

• Global economic growth: Strong economic growth can lead to increased demand for commodities.
• Supply and demand dynamics: Changes in supply and demand for specific commodities can impact their prices.
• Geopolitical events: Events such as wars or natural disasters can disrupt commodity markets.

Competitors

JJB's main competitors include:

• Invesco DB Commodity Index Tracking Fund (DBC): 55% market share
• Invesco DB Agriculture Fund (DBA): 20% market share
• VanEck Merk Gold Trust (OUNZ): 10% market share

Expense Ratio

JJB's expense ratio is 0.75%.

Investment Approach and Strategy

• Strategy: JJB utilizes an active management approach and does not track a specific index.
• Composition: The ETF primarily invests in physical commodities, commodity-linked derivatives, and commodity-related equities.

Key Points

• Actively managed: Seeking to outperform the BCOM index.
• Diversified: Exposure to various commodity sectors and investment types.
• Experienced management team: Strong track record in commodity investing.
• Competitive expense ratio: 0.75%.

Risks

• Volatility: Commodity prices can be highly volatile, which can impact the ETF's value.
• Market risk: The ETF is exposed to the risks associated with its underlying assets, such as changes in supply and demand, and geopolitical events.

Who Should Consider Investing

JJB is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with volatility.
• Seek exposure to a diversified basket of commodity-related investments.

Fundamental Rating Based on AI

Based on an AI-based analysis of various factors such as financial health, market position, and future prospects, JJB receives a rating of 7 out of 10. The ETF benefits from its experienced management team, active management approach, and competitive expense ratio. However, investors should be aware of the volatility associated with commodity investments.

Resources and Disclaimers

Disclaimer: This analysis is for informational purposes only and should not be considered as investment advice. Please consult with a financial professional before making any investment decisions.

Sources:

• Neuberger Berman: https://www.nb.com/us/individual/etfs/jjb
• ETF.com: https://www.etf.com/JJG
• Bloomberg: https://www.bloomberg.com/quote/JJB:US

Please note that this information is current as of November 2023. Market conditions and data may change over time.