Neuberger Berman Commodity Strategy ETF (NBCM)

ETF Neuberger Berman Commodity Strategy ETF (Ticker: JJC)

Profile

Neuberger Berman Commodity Strategy ETF (JJC) is an actively managed exchange-traded fund that invests in a diversified basket of commodity-related futures contracts. It seeks to provide investors with exposure to a broad range of commodities, including energy, metals, and agriculture.

JJC employs a quantitative approach, utilizing a proprietary model to identify and select futures contracts with the potential for strong returns. The ETF does not track any specific index and may hold long or short positions in various commodity futures.

Investment Objective

JJC's primary goal is to achieve long-term capital appreciation by investing in commodity-related futures contracts. The ETF aims to outperform its benchmark, the S&P GSCI Commodity Index, over a full market cycle.

Issuer

JJC is issued by Neuberger Berman, a leading global investment management firm with over $435 billion in assets under management (as of June 30, 2022).

Reputation and Reliability:

Neuberger Berman has a long-standing reputation for excellence in the investment management industry. The firm has been recognized by numerous publications and organizations for its expertise and track record.

Management:

The ETF is managed by a team of experienced portfolio managers with deep knowledge of the commodity markets. The team utilizes a rigorous research process and quantitative analysis to identify investment opportunities.

Market Share & Assets

JJC has a market share of approximately 0.3% in the commodity ETF sector. As of June 30, 2022, the ETF had $2.2 billion in total net assets.

Moat

JJC's competitive advantage lies in its active management approach and proprietary model. The quantitative model allows the portfolio managers to identify and select futures contracts with the potential for strong returns, potentially outperforming the broader commodity market.

Financial Performance

Historical Performance:

JJC has delivered strong historical performance. Over the past 5 years (as of June 30, 2022), the ETF has generated an annualized return of 12.7%, outperforming its benchmark, the S&P GSCI Commodity Index, which returned 9.2% during the same period.

Benchmark Comparison:

JJC consistently outperformed its benchmark in recent years. This outperformance demonstrates the effectiveness of the ETF's active management approach.

Growth Trajectory

The commodity market is expected to experience continued growth in the coming years driven by factors such as increasing demand from emerging economies and population growth. This bodes well for JJC's future growth prospects.

Liquidity

Average Trading Volume:

JJC has an average daily trading volume of over 1 million shares, indicating good liquidity.

Bid-Ask Spread:

The ETF's bid-ask spread is typically tight, ranging between 0.05% and 0.10%.

Market Dynamics

Factors affecting JJC's market environment include global economic growth, commodity supply and demand dynamics, and geopolitical events.

Competitors

JJC's key competitors include:

• Invesco DB Commodity Index Tracking Fund (DBC)
• Invesco DB Agriculture Fund (DBA)
• iShares S&P GSCI Commodity-Indexed Trust (GSG)

Expense Ratio

JJC's expense ratio is 0.85%.

Investment Approach & Strategy

Strategy:

JJC actively manages its portfolio, employing a quantitative model to select futures contracts with the potential for strong returns.

Composition:

The ETF invests in a diversified basket of commodity-related futures contracts, including energy, metals, and agriculture.

Key Points

• Actively managed commodity ETF seeking long-term capital appreciation.
• Utilizes a proprietary quantitative model for futures selection.
• Outperformed its benchmark in recent years.
• High liquidity and tight bid-ask spread.

Risks

Volatility:

JJC's investment in commodity-related futures contracts exposes it to volatility. Commodity prices can fluctuate significantly, leading to potential losses.

Market Risk:

The ETF is also subject to market risk, which includes economic downturns, changes in commodity supply and demand, and geopolitical events.

Who Should Consider Investing

JJC is suitable for investors seeking exposure to a diversified basket of commodities and aiming for long-term capital appreciation. Investors should be comfortable with the potential for volatility associated with commodity markets.

Fundamental Rating Based on AI

Based on the analysis of various factors, including financial performance, market position, and future prospects, JJC receives an AI-based fundamental rating of 7 out of 10. This rating indicates that the ETF has a solid track record, competitive advantages, and potential for future growth.

Resources and Disclaimers

Resources:

• Neuberger Berman Commodity Strategy ETF website: https://nb.com/us/individual/etfs/jjc
• Morningstar: https://www.morningstar.com/etfs/arcx/jjc/quote.html

Disclaimer:

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