Nuveen Sustainable Core ETF (NSCR)

Nuveen Sustainable Core ETF (NUEM) Summary

Profile:

NUEM is an actively-managed ETF that focuses on US large-cap and mid-cap stocks with a focus on ESG (Environmental, Social, and Governance) factors. The ETF uses a proprietary scoring system to select companies that exhibit strong ESG performance and growth potential. The fund employs a blend of quantitative and fundamental analysis and aims to track the Nuveen ESG Large-Mid Cap Core Index.

Objective:

The primary investment goal of NUEM is to generate long-term capital appreciation while aligning with sustainability principles. The ETF seeks to outperform the Russell 1000 Growth Index through both income and capital appreciation.

Issuer:

NUEM is issued by Nuveen, a global investment manager with over $1.3 trillion in assets under management. Nuveen has a strong reputation and long track record in the market, dating back to 1898.

Reputation and Reliability:

Nuveen boasts a solid reputation as a leading global investment manager. It consistently receives high ratings from industry analysts and has a long history of successfully managing investment products.

Management:

The Nuveen Sustainable Core ETF is managed by an experienced team of portfolio managers with expertise in both ESG investing and large-cap and mid-cap equity strategies. The team employs a rigorous research process to identify companies that meet the fund's ESG and financial criteria.

Market Share:

NUEM has a relatively small market share within the sustainable large-cap ETF space, with approximately 0.3% as of November 2023.

Total Net Assets:

As of November 2023, NUEM has approximately $728 million in total net assets.

Moat:

NUEM's competitive advantages include:

• Strong ESG Focus: The ETF's rigorous ESG selection process and commitment to sustainable investing set it apart from other large-cap ETFs.
• Experienced Management Team: The management team's expertise in ESG investing and traditional equity analysis provides a significant advantage.
• Active Management: Active management allows the portfolio managers to adapt to changing market conditions and identify opportunities missed by passively managed funds.

Financial Performance:

NUEM has delivered strong performance since its inception in 2021, outperforming its benchmark, the Russell 1000 Growth Index. However, like most investments, past performance does not guarantee future results.

Growth Trajectory:

The ESG investing market is experiencing rapid growth, indicating potential for NUEM's continued growth. The increasing demand for sustainable investment options and Nuveen's strong track record position the fund for future success.

Liquidity:

NUEM has a relatively average trading volume, which indicates moderate liquidity. The bid-ask spread is also within the typical range for ETFs, indicating reasonable trading costs.

Market Dynamics:

Several key factors influence NUEM's market environment:

• Economic Growth: A strong economy can positively impact large-cap and mid-cap stocks, potentially benefiting NUEM.
• Interest Rates: Rising interest rates can negatively impact growth stocks, which could affect NUEM's performance.
• ESG Investing Trends: The growing popularity of ESG investing could drive further demand for NUEM.

Competitors:

NUEM's key competitors in the sustainable large-cap ETF space include:

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG US Stock ETF (ESGV)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)

Expense Ratio:

NUEM has an expense ratio of 0.45%, which is considered average for actively managed ETFs.

Investment Approach and Strategy:

NUEM actively manages its portfolio to track the Nuveen ESG Large-Mid Cap Core Index. The ETF primarily invests in large-cap and mid-cap US stocks selected based on strong ESG performance and growth potential.

Key Points:

• Strong ESG focus with a robust selection process
• Experienced management team with expertise in both ESG and traditional equity investment
• Active management approach for potential outperformance
• Moderate liquidity and average trading costs
• Growing market potential within the ESG investing space

Risks:

• Market Volatility: As with any stock investment, NUEM's value can fluctuate with market conditions.
• Interest Rate Risk: Rising interest rates could negatively impact growth stocks within the portfolio.
• ESG Factors: While the fund aims to invest in sustainable companies, ESG factors are constantly evolving and their impact on performance can be uncertain.

Who Should Consider Investing:

NUEM is suitable for investors:

• Seeking long-term capital appreciation with a focus on ESG principles
• Comfortable with moderate market volatility
• Investing for a timeframe of at least five years
• Aligned with Nuveen's active management approach and ESG selection criteria

Fundamental Rating Based on AI:

Based on an AI-based rating system, NUEM receives a 7 out of 10. The analysis considers the fund's strong ESG focus, experienced management team, active management approach, and potential for growth. However, the fund's moderate liquidity, average expense ratio, and exposure to market volatility are factored into the rating.

Disclaimer: The information provided is solely for educational purposes and should not be considered financial advice. Individual investors should always conduct their own due diligence and consult with a qualified financial advisor before making investment decisions.

Resources:

• NUEM ETF Website: https://www.nuveen.com/en-us/investor/etf/etf-detail?isin=US67153T8857
• NUEM ETF Fact Sheet: https://www.nuveen.com/en-us/documents/nuem-fact-sheet.pdf
• ESG Investing Trends: https://www.gsb.stanford.edu/insights/what-you-need-know-about-esg-investing