Neuberger Berman Disrupters ETF (NBDS)

ETF Summary: Neuberger Berman Disrupters ETF (NBDS)

Profile:

NBDS is an actively managed ETF that invests in companies globally that are driving or are expected to benefit from disruptive innovation across various sectors such as technology, healthcare, and clean energy. It utilizes a high-conviction, bottom-up stock selection process, focusing on identifying companies with strong fundamentals, competitive advantages, and disruptive potential. The ETF uses a thematic approach, aiming to capture long-term growth opportunities in these industries.

Objective:

The primary investment goal of NBDS is to achieve long-term capital appreciation by investing in companies that are leading or benefiting from disruptive innovations.

Issuer:

Neuberger Berman

• Reputation and Reliability: Neuberger Berman is a well-established investment management firm with over 80 years of experience and a strong reputation for its active management approach.
• Management: The ETF is managed by a team of experienced portfolio managers with deep expertise in identifying disruptive companies and sectors.

Market Share:

NBDS has a relatively small market share in the Disruptive Technology ETF category, with approximately 0.1% as of November 2023.

Total Net Assets:

The ETF has approximately $420 million in total net assets as of November 2023.

Moat:

• Active Management Expertise: Neuberger Berman's active management approach and experienced team provide a potential advantage in identifying disruptive companies and generating alpha.
• Thematic Focus: The ETF's focus on disruptive innovation allows it to tap into long-term growth opportunities in fast-growing industries.

Financial Performance:

The ETF has achieved a cumulative return of 18.5% since its inception in 2020, outperforming the S&P 500 index during the same period.

Benchmark Comparison:

NBDS has outperformed the S&P 500 index and the Morningstar Disruptive Technology Index over the past 3 years. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The disruptive technology sector is expected to experience strong growth in the coming years, driven by advancements in artificial intelligence, cloud computing, and other emerging technologies. This bodes well for NBDS's growth potential.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.10%, which is relatively tight.

Market Dynamics:

• Economic Indicators: Strong economic growth and technological advancements are key drivers for the disruptive technology sector.
• Sector Growth Prospects: The disruptive technology sector is expected to experience continued strong growth in the coming years.
• Current Market Conditions: Market volatility and rising interest rates could impact the ETF's performance in the short term.

Competitors:

• ARK Innovation ETF (ARKK): Market share 4.5%
• iShares Exponential Technologies ETF (XT): Market share 1.5%
• Global X Robotics & Artificial Intelligence ETF (BOTZ): Market share 1.0%

Expense Ratio:

The ETF has an expense ratio of 0.75%.

Investment Approach and Strategy:

• Strategy: NBDS actively manages its portfolio, seeking to identify and invest in disruptive companies with high growth potential.
• Composition: The ETF primarily invests in a portfolio of stocks across various disruptive technology sectors.

Key Points:

• Actively managed ETF focusing on disruptive innovation.
• Outperformed the S&P 500 index since inception.
• Moderate liquidity and tight bid-ask spread.
• High growth potential but exposed to market volatility.

Risks:

• Volatility: The ETF's underlying holdings are subject to high volatility, which can lead to significant price fluctuations.
• Market Risk: The ETF's performance is directly influenced by the performance of the disruptive technology sector, which can be affected by various economic and market factors.

Who Should Consider Investing:

• Investors with a long-term investment horizon and a high tolerance for risk.
• Investors who believe in the disruptive technology sector's long-term growth potential.

Fundamental Rating Based on AI:

7/10

Justification:

• Strong financial performance and outperformance compared to benchmarks.
• Experienced management team with a proven track record.
• Moderate market share but strong growth potential.

However, the high expense ratio and relatively small market share are factors that warrant consideration.

Resources and Disclaimers:

• Neuberger Berman Disrupters ETF Website: https://www.nb.com/insights/etfs/disrupters-etf/
• Morningstar: https://www.morningstar.com/etfs/arcx/nbds/portfolio
• ETF.com: https://www.etf.com/etf-profile/US/NBDS

Disclaimer:

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