Neuberger Berman Next Generation Connected Consumer ETF (NBCC)

Overview

The Neuberger Berman Next Generation Connected Consumer ETF (NBCC) seeks to provide investment results that correspond generally to the price and yield performance of the Next Generation Connected Consumer Index. It focuses on companies that are expected to benefit from increased consumer connectivity and digital engagement.

Reputation and Reliability

Neuberger Berman is a well-established asset manager with a long history and a strong reputation for investment management.

Management Expertise

Neuberger Berman has a team of experienced portfolio managers and analysts specializing in thematic investing and consumer-related sectors.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Next Generation Connected Consumer Index.

Investment Approach and Strategy

Strategy: The ETF employs a replication strategy, investing in substantially all of the securities of the Next Generation Connected Consumer Index in proportion to their weighting in the Index.

Composition The ETF primarily holds stocks of companies involved in the connected consumer ecosystem, including those in e-commerce, digital media, and related technology sectors.

Market Share: NBCC's market share within the broader consumer discretionary and technology ETF landscape is relatively small compared to more established broad-based ETFs.

Total Net Assets (AUM): 21560000

Key Competitors

• XLY
• VCR
• IBUY
• FDIS

Competitive Landscape

The competitive landscape is dominated by large-cap consumer discretionary ETFs like XLY and VCR. NBCC differentiates itself with a narrower focus on the 'connected consumer' theme, offering targeted exposure. Its smaller AUM might lead to wider bid-ask spreads than larger competitors. The competitive advantage is its thematic focus on the future of consumption, but the small scale is a challenge.

Historical Performance: Data not readily available in structured format, requiring live data access.

Benchmark Comparison: Data not readily available in structured format, requiring live data access.

Expense Ratio: 0.65

Average Trading Volume

The average trading volume is relatively low, which may impact ease of entry and exit for larger trades.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing transaction costs.

Market Environment Factors

Economic growth, consumer spending patterns, technological advancements, and regulatory changes all influence NBCC's performance.

Growth Trajectory

Growth depends on the continued adoption of digital technologies and the increasing importance of online consumer engagement, including adapting holdings to reflect innovations and shifts in consumer behaviour.

Competitive Edge

NBCC's advantage is its specific focus on the next-generation connected consumer, differentiating it from broader consumer discretionary ETFs. The fund captures companies expected to benefit from increased digital engagement and e-commerce trends. This thematic approach allows investors to target a specific investment thesis related to evolving consumer behavior and technological innovation. This niche focus could offer higher growth potential if the connected consumer theme continues to play out as anticipated.

Volatility

Volatility can be high due to its focus on specific sectors and growth-oriented companies.

Market Risk

Market risk is tied to consumer spending patterns, technological disruptions, and regulatory uncertainties.

Ideal Investor Profile

Investors interested in long-term growth potential in the digital consumer space, with a higher risk tolerance, are the ideal candidates.

Market Risk

NBCC is more suitable for long-term investors willing to accept higher volatility for potential outperformance related to the digital consumer theme.

NBCC offers targeted exposure to the next-generation connected consumer, making it a compelling option for investors bullish on the digital economy. Its focus on emerging trends could drive significant growth, but also exposes investors to higher volatility. The fund's smaller AUM and niche focus require careful consideration of liquidity and risk tolerance. Investors should weigh NBCC's specific mandate against broader consumer discretionary ETFs to determine its suitability for their portfolios. The fund can be used to enhance exposure to the digital consumer theme and can be best used to complement the existing holdings.

Data Sources:

• Neuberger Berman ETF Website
• ETF.com
• Morningstar

Disclaimers:

Data is based on available information and may not be real-time. Investment decisions should be based on thorough research and consultation with a financial advisor. Market share estimations are based on available information and may not reflect the complete market.