Launched on 12/13/2016, the Nuveen ESG Large-Cap Value ETF (NULV) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the 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.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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 managed by Nuveen. NULV has been able to amass assets over $1.98 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. NULV seeks to match the performance of the TIAA ESG USA Large-Cap Value Index before fees and expenses.
The Nuveen ESG USA Large-Cap Value Index composes of equity securities issued by large 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.
Annual operating expenses for this ETF are 0.26%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.55%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
NULV's heaviest allocation is in the Financials sector, which is about 19.8% of the portfolio. Its Information Technology and Healthcare round out the top three.
Looking at individual holdings, Alphabet Inc - Class A (GOOGL) accounts for about 7.5% of total assets, followed by Procter & Gamble Co/the (PG) and Coca Cola Co. (KO).
The top 10 holdings account for about 25.38% of total assets under management.
Performance and Risk
So far this year, NULV has gained about 5.46%, and was up about 17.16% in the last one year (as of 02/18/2026). During this past 52-week period, the fund has traded between $36.02 and $47.89.
The ETF has a beta of 0.86 and standard deviation of 12.59% for the trailing three-year period. With about 106 holdings, it effectively diversifies company-specific risk .
Alternatives
Nuveen ESG Large-Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
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 $11.65 billion in assets, iShares ESG Aware MSCI USA ETF has $15.53 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 Value
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 Value ETF (NULV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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