Neuberger Berman Disrupters ETF (NBDS)

Overview

The Neuberger Berman Disrupters ETF (NBDS) focuses on identifying and investing in companies that are at the forefront of disruptive innovation across various sectors. It aims to capture growth from companies leveraging technology, business model changes, or scientific advancements to reshape industries. The ETF employs an actively managed strategy to select these disruptive companies.

Reputation and Reliability

Neuberger Berman is a well-established and respected global investment management firm with a long history and a strong reputation for active management expertise and research-driven investment processes.

Management Expertise

The ETF is managed by Neuberger Berman's experienced team of portfolio managers and research analysts who specialize in identifying secular growth trends and companies positioned to benefit from them.

Goal

The primary investment goal of the Neuberger Berman Disrupters ETF is to achieve long-term capital appreciation by investing in companies that are driving disruptive change.

Investment Approach and Strategy

Strategy: NBDS is an actively managed ETF, meaning it does not track a specific index. The strategy involves in-depth fundamental research to identify companies with the potential to disrupt established industries and create new markets.

Composition The ETF primarily holds a concentrated portfolio of global equities, focusing on companies of all market capitalizations that demonstrate characteristics of disruption, such as innovative technologies, strong intellectual property, and scalable business models.

Market Share: Specific market share data for NBDS within the broader ETF market or its specific niche is not readily available in a standardized format. Its market share is dependent on its AUM relative to other actively managed disruptive innovation ETFs.

Total Net Assets (AUM): 791764000

Key Competitors

• ARK Innovation ETF (ARKK)
• Invesco QQQ Trust (QQQ)
• Vanguard Information Technology ETF (VGT)

Competitive Landscape

The disruptive innovation ETF space is highly competitive, with several well-known players. NBDS competes with passively managed tech-focused ETFs like QQQ and VGT, as well as other actively managed disruptive innovation ETFs like ARKK. NBDS's advantage lies in its active management approach and Neuberger Berman's research capabilities, which may allow for more targeted selection of disruptors compared to broad index tracking. However, it faces the challenge of outperforming passive alternatives and managing the inherent volatility associated with disruptive technologies.

Historical Performance: Historical performance data for NBDS over various time periods (1-year, 3-year, 5-year, since inception) is available through financial data providers. Past performance is not indicative of future results and can vary significantly due to the dynamic nature of disruptive themes.

Benchmark Comparison: As an actively managed fund, NBDS does not have a single mandated benchmark. Its performance is typically compared against relevant broad market indices like the S&P 500 or sector-specific indices, as well as against its peer group of actively managed disruptive innovation ETFs.

Expense Ratio: 0.0075

Average Trading Volume

The ETF's average trading volume is sufficient for most retail investors to enter and exit positions without significant price impact.

Bid-Ask Spread

The bid-ask spread for NBDS is generally competitive, indicating good liquidity for active trading.

Market Environment Factors

NBDS is influenced by macroeconomic trends such as interest rates, inflation, and global economic growth, as well as sector-specific trends like technological advancements, regulatory changes, and consumer adoption of new products and services. The rapid pace of innovation can lead to high volatility.

Growth Trajectory

The ETF's growth trajectory is tied to the success of the disruptive companies it holds and the broader adoption of these technologies. Strategy and holdings are subject to ongoing adjustments based on the research team's conviction and evolving market opportunities.

Competitive Edge

NBDS's competitive edge stems from Neuberger Berman's deep fundamental research capabilities and its active management approach, allowing for a disciplined selection of companies poised for significant disruption. The firm's global reach and focus on identifying secular growth themes provide a broader perspective than purely tech-focused funds. This allows for the potential identification of disruptors across a wider range of industries and geographies.

Volatility

NBDS exhibits higher historical volatility compared to broad market indices due to its concentrated focus on growth-oriented, often early-stage companies operating in dynamic and evolving sectors.

Market Risk

The primary market risks include sector-specific downturns, the failure of innovative technologies to gain traction, increased competition, regulatory challenges, and valuation risks associated with high-growth stocks. The active management carries manager risk, where the fund's performance is dependent on the skill of the portfolio managers.

Ideal Investor Profile

The ideal investor for NBDS is one with a high-risk tolerance, a long-term investment horizon, and an understanding of the potential volatility associated with disruptive innovation investments. Investors should be seeking significant capital appreciation and be comfortable with active management.

Market Risk

NBDS is best suited for long-term investors seeking exposure to companies driving future innovation and growth. It is less suitable for risk-averse investors or those seeking stable income or short-term trading opportunities.

The Neuberger Berman Disrupters ETF (NBDS) is an actively managed fund targeting companies at the forefront of disruptive innovation. With a focus on long-term capital appreciation, it leverages Neuberger Berman's research expertise to identify secular growth opportunities. While offering potential for significant returns, investors should be aware of its inherent volatility and the risks associated with investing in disruptive technologies. Its active management aims to provide a differentiated approach compared to passive ETFs.

Data Sources:

• Neuberger Berman Official Website
• Financial Data Providers (e.g., Morningstar, ETF.com, Bloomberg)

Disclaimers:

This information is for educational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.