NuShares ETF Trust (NUMI)

Overview

NuShares ETFs are a suite of actively managed exchange-traded funds (ETFs) designed to deliver specific investment outcomes. The ETFs are managed using a multi-factor approach, aiming to outperform traditional benchmarks by focusing on factors such as value, momentum, quality, and low volatility. These ETFs offer exposure to various market segments and investment styles.

Reputation and Reliability

NuShares ETFs were previously managed by Nuveen, a TIAA company, which has a strong reputation and long track record in asset management. However, these ETFs were acquired by Victory Capital. Victory Capital is considered a reputable asset management firm.

Management Expertise

Victory Capital has a team of experienced investment professionals managing the NuShares ETFs. Their expertise spans various asset classes and investment strategies.

Goal

The primary investment goal varies by ETF within the NuShares suite, but generally aims to provide long-term capital appreciation and/or income by outperforming relevant market benchmarks.

Investment Approach and Strategy

Strategy: NuShares ETFs typically employ an active management strategy using quantitative models and multi-factor analysis to identify securities with the potential for above-average returns. The strategies target specific factor exposures.

Composition The composition depends on the specific NuShares ETF. They hold primarily stocks, but the sector and industry allocations will vary according to the strategy of the ETF.

Market Share: Market share varies by individual ETF within the NuShares family; some have a niche presence, others have a higher market share.

Total Net Assets (AUM): Data varies widely by the specific fund within the NuShares trust, ranging from tens of millions to hundreds of millions.

Key Competitors

• IVV
• SPY
• VTI

Competitive Landscape

The ETF industry is highly competitive, with numerous providers offering similar investment strategies. NuShares' competitive edge lies in its active management approach and multi-factor models. However, the higher expense ratio associated with active management can be a disadvantage compared to low-cost index funds. Brand recognition and distribution network strength are key determinants of success.

Historical Performance: Historical performance varies greatly by fund. Past performance does not guarantee future results.

Benchmark Comparison: Performance relative to benchmarks varies; some NuShares ETFs have outperformed, while others have underperformed.

Expense Ratio: Expense ratios vary by fund, and range approximately from 0.25% to 0.75%.

Average Trading Volume

Average trading volume varies significantly by fund within the NuShares family, with some funds exhibiting higher liquidity than others.

Bid-Ask Spread

The bid-ask spread varies depending on the specific ETF and market conditions, but typically indicates fairly efficient trading.

Market Environment Factors

Economic conditions, interest rates, market volatility, and investor sentiment can all impact NuShares ETFs. Sector-specific ETFs are affected by industry trends and regulatory changes.

Growth Trajectory

Growth depends on investor demand for actively managed strategies and the ETF's ability to deliver consistent performance relative to its benchmark. Changes in investment strategy could shift holdings significantly.

Competitive Edge

The NuShares ETFs' competitive advantages include Victory Capital's expertise in active management and multi-factor investing, which provides a more granular and potentially rewarding investment strategy. A specialized investment strategy aims to maximize returns by concentrating on value, momentum, quality, and low volatility. These strategies have the potential to outperform traditional benchmarks by selecting securities more likely to deliver above-average results. The active management approach also allows for tactical adjustments to the portfolio based on changing market conditions and economic trends.

Volatility

Volatility varies by ETF depending on the underlying asset class and investment strategy.

Market Risk

NuShares ETFs are exposed to general market risk, as well as specific risks associated with the sectors or asset classes in which they invest. Active management introduces the risk of underperforming the benchmark.

Ideal Investor Profile

The ideal investor profile varies by ETF but generally includes those seeking actively managed strategies, diversification, and potential for long-term growth or income. These are best for investors who understand the market and the specific investment strategies pursued by each ETF.

Market Risk

NuShares ETFs can be suitable for long-term investors seeking potential outperformance, but may also appeal to active traders who use ETFs to implement tactical investment strategies.

NuShares ETFs offer actively managed strategies focusing on various investment factors and market segments under the Victory Capital umbrella. They aim to outperform traditional benchmarks but come with higher expense ratios. The suite caters to investors seeking active management and potential for above-average returns, though the success varies across individual funds. Risk assessment and understanding the investment strategies are crucial for investors to determine the suitability of NuShares ETFs for their portfolios.

Data Sources:

• Victory Capital, ETF.com, Morningstar
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.