Is Nuveen ESG Large-Cap Growth ETF (NULG) a Strong ETF Right Now?

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?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

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.

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.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is sponsored by Nuveen. It has amassed assets over $1.84 billion, making it one of the average sized ETFs in the Style Box - Large Cap Growth. This particular fund, before fees and expenses, 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

When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.26%, making it on par with most peer products in the space.

NULG's 12-month trailing dividend yield is 0.14%.

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.

For NULG, it has heaviest allocation in the Information Technology sector --about 52.5% of the portfolio --while Consumer Discretionary and Industrials round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 15.83% of total assets, followed by Broadcom Inc (AVGO) and Visa Inc (V).

NULG's top 10 holdings account for about 40.59% of its total assets under management.

Performance and Risk

So far this year, NULG return is roughly 9.6%, and is up about 7.28% in the last one year (as of 11/21/2025). During this past 52-week period, the fund has traded between $70.54 and $102.52.

NULG has a beta of 1.18 and standard deviation of 18.93% for the trailing three-year period. With about 84 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 $11.23 billion in assets, iShares ESG Aware MSCI USA ETF has $14.62 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

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research