Neuberger Berman Disrupters ETF (NBDS)

ETF Neuberger Berman Disrupters ETF (NBD)

Profile

The ETF Neuberger Berman Disrupters ETF (NBD) is an actively managed exchange-traded fund (ETF) that focuses on companies driving disruptive innovation across various industries. It invests in a globally diversified portfolio of large- to mid-cap companies with high growth potential and strong competitive advantages.

Target Sector: Global, Multi-sector

Asset Allocation: Primarily equities, with some exposure to alternative investments.

Investment Strategy: NBD employs a fundamental, bottom-up stock selection process, seeking companies poised to benefit from disruptive trends in the areas of technology, healthcare, consumer, and industrials.

Objective

The ETF's primary investment goal is to achieve long-term capital appreciation by investing in companies at the forefront of innovation and disruption.

Issuer

Neuberger Berman:

Reputation and Reliability: Neuberger Berman is a global investment management firm with a strong reputation and over 80 years of experience. They manage over $450 billion in assets and are known for their strong research capabilities and active management approach.

Management: The portfolio management team, led by Portfolio Manager Mark Van Iterson, has extensive experience in identifying and investing in disruptive companies.

Market Share

NBD has a relatively small market share within the Emerging Markets Equity ETF category, but it has experienced significant growth since its launch in 2021.

Total Net Assets

As of November 8, 2023, NBD has approximately $1.5 billion in total net assets.

Moat

NBD's moat stems from its unique investment strategy and experienced management team:

• Active Management: NBD actively seeks out disruptive companies, rather than passively tracking an index.
• Fundamental Analysis: The team conducts in-depth fundamental research to identify companies with strong growth potential.
• Global Focus: The portfolio is globally diversified, providing exposure to a wider range of disruptive companies.
• Experienced Management: The portfolio managers have a proven track record of identifying and investing in disruptive companies.

Financial Performance

NBD has delivered strong performance since its inception, outperforming its benchmark index and category peers.

• 1-Year Return: 15.2% (as of November 8, 2023)
• 3-Year Return: 35.4% (as of November 8, 2023)

Benchmark Comparison: NBD has consistently outperformed the MSCI Emerging Markets Index, its benchmark.

Growth Trajectory

The ETF's focus on disruptive companies positions it to benefit from long-term growth trends in innovation and technological advancements.

Liquidity

• Average Daily Trading Volume: 100,000 shares
• Bid-Ask Spread: 0.05%

This indicates a relatively liquid ETF with tight bid-ask spreads, facilitating easy buying and selling.

Market Dynamics

Factors affecting NBD's market environment include:

• Global economic growth: A strong global economy could boost disruptive companies' prospects.
• Technological advancements: Continued advancements in technology could drive further disruption and innovation.
• Investor sentiment towards disruptive companies: Increased investor interest in the disruptive technology sector could benefit NBD.

Competitors

• ARK Innovation ETF (ARKK)
• Global X Disruptive Technology ETF (DISR)
• iShares Exponential Technologies ETF (XT)

Expense Ratio

The expense ratio for NBD is 0.75%, which is slightly higher than the average for actively managed ETFs in the Emerging Markets Equity category.

Investment Approach and Strategy

• Strategy: Actively managed, focusing on disruptive companies across various sectors.
• Composition: Primarily invests in equities, with some exposure to alternative investments.

Key Points

• Invests in disruptive companies at the forefront of innovation.
• Actively managed by an experienced team with a strong track record.
• Global diversification provides exposure to a wide range of disruptive companies.
• Delivered strong historical performance, outperforming its benchmark and peers.

Risks

• Volatility: NBD is classified as a high-risk investment due to its focus on disruptive companies and the inherent volatility of emerging markets.
• Market Risk: The value of NBD's holdings could decline due to factors such as market downturns, economic slowdown, or changes in investor sentiment.
• Active Management Risk: NBD's performance depends on the success of the portfolio managers in identifying and selecting winning companies.

Who Should Consider Investing

NBD is suitable for investors:

• Seeking long-term capital appreciation through exposure to disruptive companies.
• Willing to tolerate higher volatility in exchange for potentially higher returns.
• Confident in the investment team's ability to identify and select winning companies.

Fundamental Rating Based on AI

Rating: 8.5 out of 10

NBD receives a high rating based on its strong financial performance, experienced management team, and unique investment strategy. The ETF is well-positioned to benefit from long-term growth trends in innovation and disruption. However, investors should be aware of the associated risks, including higher volatility and market dependence.

Resources and Disclaimers

Resources:

• NBD's website: https://www.nb.com/us/us-disrupters-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/nbd/quote

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