Neuberger Berman Carbon Transition & Infrastructure ETF (NBCT)

Overview

The Neuberger Berman Carbon Transition & Infrastructure ETF (NBCT) seeks to invest in companies that are expected to benefit from the transition to a low-carbon economy and the development of infrastructure. It focuses on sectors like clean energy, water infrastructure, and sustainable materials.

Reputation and Reliability

Neuberger Berman is a well-established asset management firm with a long history in the investment industry. It is known for its research-driven approach and commitment to client service.

Management Expertise

Neuberger Berman has a dedicated team of investment professionals with expertise in infrastructure, sustainability, and thematic investing.

Goal

The ETF aims to provide long-term capital appreciation by investing in companies that are contributing to the carbon transition and infrastructure development.

Investment Approach and Strategy

Strategy: The ETF employs an actively managed strategy, selecting companies based on their exposure to carbon transition and infrastructure themes.

Composition The ETF primarily holds stocks of companies involved in renewable energy, energy efficiency, water management, sustainable construction, and other related sectors.

Market Share: NBCT's market share within the broader clean energy and infrastructure ETF space is relatively small compared to larger, more established funds.

Total Net Assets (AUM): 18.02

Key Competitors

• ICLN
• TAN
• QCLN
• ACES

Competitive Landscape

The competitive landscape is dominated by several large, well-established clean energy ETFs like ICLN, TAN, and QCLN. NBCT differentiates itself with its active management and focus on a broader range of infrastructure and carbon transition themes. However, its smaller AUM and higher expense ratio compared to some competitors may be a disadvantage.

Historical Performance: Historical performance data is limited due to the ETF's relatively recent inception. Performance will fluctuate based on the underlying holdings within the energy and infrastructure sector.

Benchmark Comparison: A suitable benchmark for comparison would be a blended index of clean energy and infrastructure stocks, but direct comparison data is unavailable. Performance should be compared against relevant indices to assess its effectiveness.

Expense Ratio: 0.55

Average Trading Volume

The ETF's average daily trading volume is moderate, which could impact the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread is relatively small, which usually indicates reasonable trading efficiency but may widen during periods of volatility.

Market Environment Factors

The ETF is influenced by factors such as government policies promoting renewable energy, technological advancements in clean technologies, and global infrastructure development trends. Interest rates and economic growth rates can also influence the profitability of projects held by the fund.

Growth Trajectory

The growth trajectory depends on the continued adoption of sustainable infrastructure and the success of companies involved in the carbon transition. Strategies and holdings may change over time based on market opportunities and evolving investment themes.

Competitive Edge

NBCTu2019s competitive advantage lies in its actively managed approach, which allows for flexibility in selecting companies based on their potential for growth and contribution to a low-carbon economy. The fund also focuses on a broader range of infrastructure and carbon transition themes. It's selective investment strategy could deliver greater returns. The management team's expertise in thematic investing further contributes to its competitive edge.

Volatility

The ETF's volatility is expected to be moderate to high, reflecting the fluctuations of the underlying holdings in the energy and infrastructure sectors.

Market Risk

The ETF is subject to market risk, including sector-specific risks related to clean energy and infrastructure. Changes in government regulations, technological disruptions, and economic cycles can impact the performance of the ETF.

Ideal Investor Profile

The ETF is suitable for investors who are seeking long-term capital appreciation and are interested in investing in companies that are contributing to the carbon transition and infrastructure development. It is attractive to those aligned to ESG and sustainability investment themes.

Market Risk

The ETF is best suited for long-term investors who are willing to accept moderate to high levels of risk and have a strong conviction in the growth potential of clean energy and infrastructure sectors.

The Neuberger Berman Carbon Transition & Infrastructure ETF is an actively managed fund that invests in companies involved in the carbon transition and infrastructure development. It offers investors exposure to sectors like clean energy, water infrastructure, and sustainable materials. While the ETF is relatively new and has a small AUM, it offers potential for growth and capital appreciation. It is best suited for investors with a long-term investment horizon and a strong interest in sustainable investing and decarbonization themes.

Data Sources:

• Neuberger Berman Website
• ETF.com
• Morningstar
• FactSet

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.