The Nuveen ESG Large-Cap Growth ETF (NULG) was launched on 12/13/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Nuveen. It has amassed assets over $1.79 billion, making it one of the average sized ETFs in the Style Box - Large Cap Growth. Before fees and expenses, this particular fund seeks to match the performance of the TIAA ESG USA Large-Cap Growth Index.
The Nuveen ESG USA Large-Cap Growth Index composes of equity securities issued by large capitalization companies listed on U.S. exchanges.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for NULG are 0.26%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.14%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Information Technology sector - about 47.4% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Taking into account individual holdings, Nvidia Corp (NVDA) accounts for about 15.81% of the fund's total assets, followed by Broadcom Inc (AVGO) and Alphabet Inc (GOOG).
Its top 10 holdings account for approximately 45.91% of NULG's total assets under management.
Performance and Risk
Year-to-date, the Nuveen ESG Large-Cap Growth ETF has added roughly 15.7% so far, and was up about 23.66% over the last 12 months (as of 09/19/2025). NULG has traded between $70.54 $99.75 in this past 52-week period.
The ETF has a beta of 1.18 and standard deviation of 20.08% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk .
Alternatives
Nuveen ESG Large-Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF has $11.53 billion in assets, iShares ESG Aware MSCI USA ETF has $14.61 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.
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 - Large 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.
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Nuveen ESG Large-Cap Growth ETF (NULG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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