Launched on 12/13/2016, the Nuveen ESG Mid-Cap Growth ETF (NUMG) is a smart beta exchange traded fund offering broad exposure to the Style Box - Mid Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Nuveen. NUMG has been able to amass assets over $377.30 million, making it one of the average sized ETFs in the Style Box - Mid Cap Growth. Before fees and expenses, this particular fund seeks to match the performance of the TIAA ESG USA Mid-Cap Growth Index.
The Nuveen ESG USA Mid-Cap Growth Index composes of equity securities issued by mid-capitalization companies listed on U.S. exchanges.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.31% for NUMG, making it on par with most peer products in the space.
NUMG's 12-month trailing dividend yield is 0.06%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
NUMG's heaviest allocation is in the Information Technology sector, which is about 27.40% of the portfolio. Its Industrials and Healthcare round out the top three.
When you look at individual holdings, Grainger W.w. Inc. (GWW) accounts for about 3.87% of the fund's total assets, followed by Targa Resources Corp (TRGP) and Gartner Group Inc (IT).
Its top 10 holdings account for approximately 33.29% of NUMG's total assets under management.
Performance and Risk
So far this year, NUMG has lost about -9.41%, and is down about -3.45% in the last one year (as of 04/01/2025). During this past 52-week period, the fund has traded between $39.43 and $51.47.
The fund has a beta of 1.15 and standard deviation of 22.52% for the trailing three-year period. With about 44 holdings, it has more concentrated exposure than peers.
Alternatives
Nuveen ESG Mid-Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Mid Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
IShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ----------------------------------------. IShares ESG Aware MSCI USA ETF has $12.82 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $22.55 billion. ESGU has an expense ratio of 0.15% and JEPQ charges 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nuveen ESG Mid-Cap Growth ETF (NUMG): ETF Research Reports W.W. Grainger, Inc. (GWW): Free Stock Analysis Report Gartner, Inc. (IT): Free Stock Analysis Report Targa Resources, Inc. (TRGP): Free Stock Analysis Report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
