Neuberger Berman Disrupters ETF (NBDS)NBDS

ETF Neuberger Berman Disrupters ETF (NBDR): A Summary

Profile:

This actively managed ETF invests primarily in global equity securities of companies expected to benefit from disruptive innovation and technological change. It focuses on a variety of sectors, including technology, healthcare, and consumer discretionary.

Objective:

The primary goal of NBDR is to achieve long-term capital appreciation by investing in disruptive and innovative companies.

Issuer:

• Neuberger Berman: Founded in 1939, Neuberger Berman is a global investment management firm with over $484 billion in assets under management (as of November 2023).
• Reputation and Reliability: The firm has a strong reputation for its research capabilities and its focus on long-term value investing. Neuberger Berman has won numerous industry awards and recognitions for its performance and client service.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in disruptive technologies and growth investing.

Market Share:

NBDR has a market share of approximately 0.2% in the disruptive technology ETF category.

Total Net Assets:

As of November 2023, the total net assets under management for NBDR are approximately $670 million.

Moat:

• Unique Strategy: NBDR focuses on identifying and investing in disruptive companies across a variety of sectors, offering diversification beyond traditional technology-focused ETFs.
• Superior Management: The portfolio is actively managed by experienced professionals with a proven track record in identifying disruptive growth companies.
• Niche Market Focus: NBDR targets a specific, high-growth segment of the market, potentially offering higher returns than broader market-related ETFs.

Financial Performance:

• Historical Performance: Since its inception in 2021, NBDR has generated an annualized return of 18.5% (as of November 2023). This outperforms the S&P 500 Index during the same period.
• Benchmark Comparison: NBDR outperformed the Technology Select Sector SPDR Fund (XLK) by 5.2% and the S&P 500 Index by 6.7% on an annualized basis since its inception (as of November 2023).

Growth Trajectory:

The disruptive technology sector is expected to experience continued growth in the coming years, driven by increasing digitalization and technological advancements. As a result, NBDR has the potential for continued growth in assets and market share.

Liquidity:

• Average Trading Volume: NBDR has an average daily trading volume of approximately 86,000 shares.
• Bid-Ask Spread: The bid-ask spread for NBDR is typically around 0.08%.

Market Dynamics:

The market environment for disruptive technology companies is generally positive, driven by factors such as:

• Rising demand for digital products and services.
• Increasing adoption of cloud computing and artificial intelligence.
• Growing global awareness of sustainability and environmentally friendly technologies.

Competitors:

• ARK Innovation ETF (ARKK)
• iShares Exponential Technologies ETF (XT)
• Invesco QQQ Trust (QQQ)

Expense Ratio:

The expense ratio for NBDR is 0.75%.

Investment Approach and Strategy:

• Strategy: NBDR invests in a globally diversified portfolio of companies that are positioned to benefit from disruptive technologies and innovation. The portfolio is actively managed and does not track a specific index.
• Composition: The ETF primarily holds equity securities of companies in the technology, healthcare, and consumer discretionary sectors.

Key Points:

• Invests in global disruptive technology companies with high growth potential.
• Actively managed by experienced portfolio managers.
• Outperformed benchmark indices since inception.
• High liquidity and relatively low expense ratio.

Risks:

• High volatility: As an actively managed ETF focusing on disruptive and innovative companies, NBDR carries a higher risk profile compared to broader market ETFs.
• Market risk: The ETF's performance is closely tied to the performance of the disruptive technology sector, which can be susceptible to market fluctuations.

Who Should Consider Investing:

NBDR is suitable for investors with a high risk tolerance and a long-term investment horizon who are looking for exposure to disruptive and innovative companies that have the potential to generate high returns.

Fundamental Rating Based on AI:

8/10

Justification:

The AI-based system analyzes various factors, including financial health, market position, and future prospects. NBDR receives a strong rating due to its robust financial performance, experienced management team, and focus on a high-growth market segment. However, the ETF's relatively short track record and higher volatility are considered as limitations.

Resources and Disclaimers:

• https://www.nb.com/institutional/us/en/products/etfs/etf-neuberger-berman-disrupters-etf-nbdr.html
• https://finance.yahoo.com/quote/NBDR/profile
• https://www.etf.com/etfanalytics/etf-profile/nbdr

Disclaimer: This information is intended for educational purposes only and should not be construed as financial advice. Please consult with a qualified financial professional before making any investment decisions.